UNTIL the 2015/16 tax year, if you drove a company van that was powered by electricity you payed no benefit in kind van tax.
Following Budget 2015 company van tax on electric vans is changing; tax will be paid in a tapered rate to eventually meet the company van tax rates paid by drivers of conventionally fuelled business vans.
Company van tax on electric vans – more formally called the Van Benefit Charge – will now be paid at a rate of 20% of the standard company van tax rate, rising in stages to 2020 when it will be equalized.
The standard Van Benefit Charge rate of company van tax for 2015/16 is £3150 on which you then pay tax at your standard rate of either 20% (£630 a year) or 40% (£1260 a year).
So for 2015/16 the company van tax on electric vans is 20% of £3150 (ie £630). So the actual tax payable is £126 for a 20% tax payer; £252 for a 40% tax payer.
Company van tax on electric vans
|Tax year||Percentage of standard Van Benefit Charge|