VEHICLES - TAXABLE BENEFITS & MILEAGE RATES

Car Benefit — The taxable benefit is calculated as a percentage of the list price of the car on the day before it was first registered. The percentage depends on the rate at which the car emits CO2, and ranges from 3% up to a maximum of 37% of list price for 2026/27. Zero-emission electric vehicles now carry a BIK rate of 3% (up from 2% in 2025/26).

Car Fuel Benefit — Where an employee has the benefit of private fuel for a company car, the same CO2-based percentage used to calculate the car benefit is applied to the 'fuel benefit multiplier' to work out the assessable benefit.

Fuel benefit multiplier: 2026/27 £29,200 (2025/26: £28,200)

Van Benefit — There is a tax charge for an employee who is provided with a company van that is made available for private use. There is also a tax charge where fuel is provided for private use. No taxable benefit arises for zero-emission vans.

Van benefit charge: 2026/27 £4,170 (2025/26: £4,020)

Van fuel benefit: 2026/27 £798 (2025/26: £769)

Employers pay Class 1A National Insurance at 15% on all of these benefit values.

Mileage Allowance Payments - what an employee can receive for using their own vehicle for business.

Rates & Allowances Pages ► Income Tax Rates & Allowances ■ Capital Gains Tax ■ Pensions ■

■ Inheritance Tax ■ National Insurance ■ Statutory Pay ■ Child Benefit ■ Vehicles ■ VAT ■ ISAs ■

  ■ Corporation Tax ■ Capital Allowances ■ Stamp Duty & SDLT ■ Investing in a small business ■

Registered office: 61 Friar Gate, Derby, Derbyshire, DE1 1DJ   T: 01332 202660

Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd.  Registered in England No. 05770414