Van benefit charge and fuel benefit charges for cars and vans 2021-22
05 February 2021
The Government has confirmed that the van benefit charge and fuel benefit charges for cars and vans will be uprated by the Consumer Price Index (CPI), from 6 April 2021.
The uprate means that:
- The Van Benefit Charge will uprate from £3,490 to £3,500
- The Car Fuel Benefit Charge multiplier will uprate from £24,500 to £24,600
- The Van Fuel Benefit Charge will uprate from £666 to £669
The announcement has been made outside of the standard fiscal process to give both employers and HMRC sufficient time to prepare for the uprate, prior to tax year 2021-22.
As announced at Budget 2020, the government will legislate in the Finance Bill 2021 to reduce the van benefit charge to zero for vans that produce zero carbon emissions. The change will have effect on and after 6 April 2021.
It is important to note that the Government is yet to lay the statutory instrument to uprate these changes but will do so on 9 March 2021. A tax information and impact note will be published at Budget 2021, and will be found here from that date.
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