Company Van Benefit in Kind Tax Calculator 2025/26

Company van private use is taxed as a benefit in kind (BIK). Unlike company cars (which use CO2-based percentages), van BIK uses fixed annual charges: £3,960 for any van with private use, £757 for pri

Company Van BIK Rates 2025/26

Benefit2024/252025/26
Van private use benefit£3,960£3,960
Van fuel benefit (employer pays fuel)£757£757
Zero-emission van£0£0

What Counts as a Van

A van for BIK purposes is a motor vehicle with a design weight of 3,500kg or less, primarily constructed for carrying goods or burden (not passengers). Pickups, panel vans and crew cabs may or may not qualify depending on construction. Double cab pickups: from July 2024, HMRC reverted to treating them as cars for BIK (based on payload, not construction) — from April 2025, the rules are clear: double cab pickups with payload over 1 tonne can be treated as vans.

Restricted Private Use

Private use means any non-business journey. 'Home to work' is private use unless the employer genuinely restricts the van to business only (with written policy and enforcement). If private use is genuinely prohibited and not just theoretically restricted, BIK is nil.

Tax Calculation Example — Basic Rate Employee

Van BIK £3,960 + fuel benefit £757 = total BIK £4,717
Basic rate employee (20%): income tax = £943.40/year
Higher rate employee (40%): income tax = £1,886.80/year
Employer Class 1A NI (13.8%): £650.95/year

Frequently Asked Questions

What is the van BIK charge in 2025/26?
The van benefit in kind charge for 2025/26 is £3,960 for any van where private use is allowed. If the employer also provides fuel for private journeys, an additional £757 fuel benefit applies. The employee pays income tax on these amounts. Zero-emission (electric) vans have a £0 BIK charge.
How much tax do I pay on a company van?
You pay income tax on the BIK value. Van BIK: £3,960 × your marginal tax rate. Basic rate (20%): £792/year. Higher rate (40%): £1,584/year. If fuel is also provided: add £757 × rate. Basic: £151.40/year extra. Higher: £302.80/year extra.
Is an electric van free of BIK?
Yes. Zero-emission vans have a £0 BIK charge in 2025/26. This makes electric vans very tax-efficient for employees compared to petrol/diesel vans (£3,960 BIK) or even many electric cars (which have a 3% BIK percentage in 2025/26, but calculated on list price).
Can my employer restrict van private use to avoid BIK?
Yes, but the restriction must be genuine. HMRC requires: a written prohibition of private use, active enforcement (not just on paper), and no actual private use occurring. Home-to-work travel counts as private use unless the van is kept at a depot (not at home).
Do I pay NI on van BIK?
No, employees do not pay NI on benefits in kind. However, employers pay Class 1A NI at 13.8% on the BIK value. For a standard van + fuel: employer pays 13.8% × £4,717 = £650.95/year in Class 1A NI (due by 19 July following the tax year).
Is a pickup truck treated as a van or car for BIK?
From April 2025, double cab pickups with a payload of more than 1 tonne are classified as vans. Those with lower payload are cars. This reversed years of uncertainty following HMRC's February 2024 guidance change (then reversal). Single cab pickups are vans.
What is the difference in BIK between a van and a company car?
Van BIK is a fixed £3,960 charge. Car BIK is calculated as: list price × CO2-based percentage. A £30,000 diesel car at 30% = £9,000 BIK. At 40% tax: car costs £3,600/year vs van £1,584/year. However, cars have lower fuel benefit caps and often more flexibility.
How is van BIK reported to HMRC?
Report van BIK on form P11D by 6 July following the tax year end. Pay Class 1A NI via P11D(b) by 19/22 July. Alternatively, employers can payroll benefits in kind instead of filing P11D. The employee's tax code will be adjusted to collect the income tax.