Annual Increases in Vehicle Benefit Charges

As announced in the Autumn Budget 2024, the van benefit charge and the car and van fuel benefit charges are to increase from 6 April 2025, in line with the Consumer Price Index.

The van benefit charge applies where an employer provides an employee with a company van and the employee uses it for private journeys. The benefit charge will increase to £4,020 in 2025/26, from £3,960 in 2024/25. A further benefit charge of £769 will apply where fuel is also provided, up from £757 in 2024/25. No tax is payable in respect of zero-emissions vans.

The multiplier for the car fuel benefit charge will increase from £27,800 to £28,200. The applicable benefit charge is calculated using a percentage based on the car's emissions.

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