New rates for van benefit-in-kind tax

23rd January 2014

The van benefit-in-kind tax charge will increase from £3,000 in 2013/14 to £3,090 in 2014/15, chancellor George Osborne announced.  For employees on a 20% tax rate that works out at £618, and for higher-rate payers £1,236.

Vans used solely for business and/or commuting, or where the amount of private use is insignificant, are exempt.

Meanwhile, from April 6, 2014 the van fuel benefit charge multiplier will rise from £564 to £581. Basic rate taxpayers will incur a £116 charge, and higher rate payers £232.

Until April 2015, both the van benefit charge and fuel benefit charge for electric vehicles will remain at nil.