U
UK Tax Tools

Company Van Tax Calculator

Calculate employee income tax and employer Class 1A National Insurance on a company van, including electric vans, private fuel, shared vans, unavailability and salary sacrifice.

Calculate Company Van Benefit Tax

A van used only for business, ordinary commuting under the restricted-use condition, or insignificant private journeys can be exempt.

Leave at £0 unless the van is supplied through salary sacrifice.

Your estimated tax

£166 per month

£1,987 employee income tax per year.

Van Benefit

£4,170

Fuel Benefit

£798

Total Taxable Benefit

£4,968

Employer Class 1A NI

£745
Share

When no van benefit is due

No van benefit normally arises when the van is used only for business journeys, qualifies as a pool van, or meets the restricted private-use condition. Insignificant private use can be ignored, but regular shopping, holidays or other personal journeys do not count as insignificant.

For periods of unavailability, HMRC reductions generally require at least 30 consecutive days. Employee payments for private use can reduce the taxable van benefit.

Frequently asked questions

How much is company van benefit tax in 2026/27?

The standard taxable van benefit is £4,170. Your income tax is normally that benefit multiplied by your marginal tax rate, subject to exemptions, unavailability, sharing and employee payments.

Is an electric company van tax free?

A zero-emission van has a nil van benefit charge. The van may still need to be reported, but 0% of the standard charge produces no taxable van benefit.

Is commuting in a company van private use?

Ordinary commuting can fall within the restricted private-use exemption when the van is available mainly for business travel and other private use is insignificant. The actual arrangement and use must meet HMRC's conditions.

How is company van fuel taxed?

Employer-paid fuel for private van journeys creates a flat £798 benefit in 2026/27 unless all private fuel is repaid or an exemption applies.

Official sources

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