Van benefit charge and fuel benefit charges for cars and vans

The measure

The government announced increases to the benefit in kind value for some employer provided vans and increases to the taxable values of employer provided private fuel for company vans and cars. 

These are: 

• With the exception of zero-emission vans, the van benefit charge will increase to £3,600 for 2022/23, up from £3,500 in 2021/22; 

• Van fuel benefit will increase to £688 in 2022/23, up from £669 in 2021/22; and 

• The fuel benefit multiplier for conventional company cars will rise to £25,300, up from £24,600 in 2021/22. 

There are no changes for zero-emission vans; these will continue attract a nil benefit charge.  Similarly, no changes were announced in relation to employer provided electric cars; these will continue to attract a relatively low benefit charge of 2% of the list price for 2022/23. 

Who will be affected?

Employees who are provided with company vans which are not zero-emission and employees provided with fuel for their company cars or vans will be affected by the measure.  Other things being equal, they will pay more income tax as a result of the increases.  Employers will also be affected as they will pay more Class 1A NIC on the increased benefit values. 

When will the measure come into effect?

The increases will apply for the tax year 2022/23.