Van Benefit and Fuel Benefit 2020/21

In advance of the Budget on 11th March the Government has confirmed the rates of benefit in kind for vans, van fuel and company car fuel that will take effect from 6 April 2020.
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• the van benefit charge will increase from £3,430 to £3,490;
• the car fuel benefit charge multiplier will increase from £24,100 to £24,500; and
• the van fuel benefit charge will increase from £655 to £666.

The van benefit applies where an employee has the use of a van provided by their employer and it is available for private use.  The van fuel benefit applies if the employer pays for any fuel that includes private journeys.  

The car fuel benefit applies when an employer pays for any fuel that includes private journeys and is calculated by using the same percentage based on carbon dioxide emissions that is used to calculate the car benefit, and that percentage is applied to the fuel benefit multiplier to calculate the benefit to the employee.