Van tax calculator
Company van tax is a flat charge, not a percentage of what the van cost, which makes it far cheaper than a car. This van tax calculator applies the 2026/27 van tax rates, and shows what a double cab pickup now costs since it stopped counting as a van.
Updated 14 September 2026 · Tax year 2026/27
What the vehicle costs in tax #
| Taxable benefit Flat rate van benefit charge | £4,170.00 |
| Your Income Tax at 20% | £834.00 |
| Cost to you a month | £69.50 |
| Employer Class 1A at 15% | £625.50 |
| Combined annual cost | £1,459.50 |
Van tax rates for 2026/27 #
| Charge | Amount | What it means |
|---|---|---|
| Van benefit charge | £4,170.00 | Flat, regardless of the van's value |
| Van fuel benefit charge | £798.00 | Only where the employer pays for private fuel |
| Zero emission van | Nil | No charge at all |
| Class 1A on the benefit | 15% | Paid by the employer on the same figure |
Those are the taxable amounts, not the tax. A basic rate taxpayer with an ordinary van and no free fuel pays £834.00 a year, around £69.50 a month.
When no van tax is due at all #
Most tradespeople with a company van owe nothing, because the charge only applies where private use goes beyond the insignificant. Commuting is specifically allowed in a van, which is the single biggest difference from a company car.
| No charge | Charge applies |
|---|---|
| Ordinary commuting between home and work, which is specifically allowed for vans | Using the van for a supermarket shop every week |
| A slight detour on the commute, such as stopping for a newspaper | Taking the van on holiday |
| Taking the van to your own medical appointment on the way home | Letting family or friends use it |
| An occasional trip to the tip with domestic rubbish | Using it outside work for social activities as a matter of routine |
A pool van is exempt too: available to more than one employee, kept at the workplace overnight, and not used privately beyond the insignificant.
Double cab pickup capital allowances #
The classification change hit capital allowances as well as benefit in kind. A double cab pickup bought now is a car for capital allowances, so full expensing and the annual investment allowance are both out, and relief comes through writing down allowances spread over years instead of in one go.
The transitional rule here is narrower than the benefit in kind one: it covers expenditure under a contract entered into before 6 April 2025 where the money was actually spent before 1 October 2025. The capital allowances guide explains the writing down pools and rates.
Van tax and vehicle excise duty are different things #
Two separate taxes get called van tax. This page covers the benefit in kind charge, which is what a company van costs its driver. Vehicle excise duty, the road tax on the DVLA disc, is a separate annual charge on the vehicle itself and is payable whoever owns it. Rates for light goods vehicles change each April and are published in the DVLA rate tables.
Common questions #
How much is company van tax?
The van benefit charge is a flat £4,170.00 for 2026/27, whatever the van cost. A basic rate taxpayer pays £834.00 a year on it, a higher rate taxpayer £1,668.00. Free fuel for private use adds £798.00 to the benefit.
What are the van tax rates for 2026/27?
Van benefit charge £4,170.00, van fuel benefit charge £798.00, and nil for a zero emission van. These are the figures for the taxable benefit, not the tax itself.
Do I pay tax on a company van I only use for work?
No. There is no charge where private use is insignificant, and commuting between home and work does not count against you in a van, unlike a car. The charge starts when the van is genuinely used privately, such as a weekly supermarket run or a holiday.
Is there van tax on an electric van?
No. The van benefit charge for a zero emission van is nil, so an electric van provided to an employee produces no Income Tax and no Class 1A National Insurance at all.
How is double cab pickup tax worked out now?
As a car. From 6 April 2025 HMRC treats a double cab pickup with a payload of 1 tonne or more as a car for benefit in kind, so the charge is a percentage of list price rather than the flat van rate. Pickups have high CO2, so most land at the 37% cap.
What is the double cab pickup transitional rule?
A pickup purchased, leased or ordered before 6 April 2025 keeps van treatment until the earlier of disposal, lease expiry, or 5 April 2029. An employer can move it between their own employees during that window without losing it.
What about double cab pickup capital allowances?
Also treated as a car from 6 April 2025, so the full expensing and annual investment allowance routes are closed and relief comes through writing down allowances instead. Where the contract was entered into before 6 April 2025 and the money was spent before 1 October 2025, the old van treatment still applies.
Does the van benefit charge apply to a pool van?
No. A genuine pool van available to more than one employee, kept at the workplace overnight and not used privately beyond the insignificant, carries no charge for anyone.