Annual Increases in Vehicle Benefit Charges for 2026/27

As announced in the Autumn Budget 2025, the van benefit charge and the car and van fuel benefit charges will increase from 6 April 2026, 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 from £4,020 to £4,170. A further benefit charge of £798 will apply where fuel is also provided, up from £769 in 2025/26. No taxable benefit arises in respect of zero-emissions vans.

The multiplier for the car fuel benefit charge will increase from £28,200 to £29,200. The applicable benefit charge is calculated using a percentage based on the car's emissions.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.