The vehicle benefit charges for 2023/24 have been announced and will come into effect on and after 6 April 2023. Where employees are provided with fuel for their own private use by their employers, the car fuel benefit is also applicable.
The fuel benefit charge is not applicable when the employee pays for all their private fuel use.
The standard benefit charge for private use of a company van will increase from £3,600 to £,3960. A company van is defined as 'a van made available to an employee by reason on their employment'. There is an additional van fuel benefit charge for a van with significant private use. The limit will increase in 2023/24 from 3688 to £757. If private use of the van is insignificant then no benefit will apply.
Since 6 April 2021, the van benefit charge has been reduced to zero for vans that produce zero carbon emissions. This measure supports the Government's climate change agenda by encouraging the uptake of vans that emit zero carbon emissions.
