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HMRC internal manual

Employment Income Manual

Van fuel benefit from 2005/06: differences from car fuel benefit

Sections 160-164 ITEPA 2003

Two kinds of private use

The major difference between car fuel benefit and van fuel benefit is a consequence of splitting private use of vans into two kinds, EIM22740. While the charge can only apply to company cars and vans (i.e. those to which car or van benefit applies):

  • car fuel: the charge is incurred if any fuel is provided for such a car
  • van fuel: the charge only applies where the restricted private use condition (EIM22795) is not met in relation to the van; there is no charge where it is met.

Other differences

  • method of calculation: the van fuel charge is a fixed charge whereas the car fuel charge is linked to CO2 emissions. See EIM22915 for the amount of the charge.
  • replacement vans: their effect on the van fuel charge (EIM22940) is not the same as that of replacement cars on the car fuel charge.

Similarities to car fuel benefit

See EIM22905.

2005/06 and 2006/07

Because the van fuel benefit charge is nil for these two years, its existence can effectively be ignored until 2007/08.

Years prior to 2005/06

There was no separate charge for van fuel before 2005/06 because the benefit was covered by the van benefit charge, see EIM22068.