Measure

Van benefit charge and car and van fuel benefit charges

The measure

The government announced that it will maintain the van benefit charge as well as the car and van fuel benefit charges at the current level for 2024/25. 

The amounts that applied in 2022/23 had been increased by CPI for the 2023/24 tax year.  

 

Who will be affected?

Employers who provide company cars and/or company vans, and employees who are provided with these vehicles.

 

When will the measure come into effect?

This applies for 2024/25.

Our view

We welcome keeping these charges at the 2023/24 levels. This ensures that no further income tax will be paid by employees on these benefits in 2024/25 and employers will not pay additional Class 1A NIC.