Additional reporting Ralph Morton
UNTIL the 2015/16 tax year, if you drove a company van that was powered by electricity you payed no benefit in kind van tax.
Alas, that was then.
From March 2016, the Treasury announced that company van tax – the Van Benefit Charge – on electric vans would change to a more gradually tapered rate to eventually meet the company van tax rates paid by drivers of conventionally fuelled business vans.
Company van tax on electric vans – more formally called the Van Benefit Charge – would liable at a rate of 20% of the standard company van tax rate, rising in stages to 2022 when it will be charged at the standard Van Benefit Charge rate.
Company van tax for electric vans in 2018/19
The standard Van Benefit Charge rate of company van tax for 2018/19 is £3350.
So company van tax on an electric van is 40% of £3350 (ie £1340). The actual benefit in kind tax payable is £268 a year for a 20% tax payer; £536 for a 40% tax payer.
There is no company van tax payable on an electric van if it used solely for business use – see Company van tax – do I have to pay it? for more details about this.
Company provided electric vans will now be subject to company van tax, starting at 20% of the standard Van Benefit Charge for 2015/15
Company van tax on electric vans
| Tax year | Percentage of standard Van Benefit Charge |
| 2015/16 | 20% |
| 2016/17 | 20% |
| 2017/18 | 20% |
| 2018/19 | 40% |
| 2019/20 | 60% |
| 2020/21 | 80% |
| 2021/22 | 90% |
| 2022/23 | 100% |
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