IF YOU receive free fuel from your employer to use a van other than for work, such as private use for leisure time, then the cost of the benefit has gone up from April 6, 2018.
The fuel benefit tax has increased to £633 from £610.
So a 20% income tax payer will be charged 20% of £633 for free fuel, which is £127 a year; a 40% tax payer will pay £253 a year.
The Van Benefit Charge – the commercial vehicle equivalent of company car tax – has also increased from April 6, 2018. It is now £3350 (up from £3230). A 20% rate tax payer will pay £670 a year for the private benefit use of a company provided van.
Van Benefit Charge support for zero-emission vans is at 40% of the main rate.
It will then increase on a tapered basis to April 05, 2022: 40% in 2018/19, 60% in 2019/20, 80% in 2020/21, 90% in 2021/22 and then equalising with the standard charge in 2022/23 – a two-year extension from the original timetable.
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