Employees
Company cars and fuel (Table C)
The basis for taxing company cars and fuel provided for private use is set out in the Table. Annual increases in the rates for use of the car have been announced up to 2027/28, but the figure used to calculate the benefit of free use of business fuel for private journeys remains fixed for the moment at £27,800. The rates continue to incentivise the take-up of electric cars, even though they can no longer be provided completely tax-free.
The taxable amounts for the availability of a van for more than incidental private use, and for an employee’s private use of fuel in a company van, normally increase in line with inflation. However, the 2023/24 flat rate figures of £3,960 and £757 for these benefits remain the same for 2024/25. Electric vans remain a tax-free benefit.