Factcard
Company cars & vans
Benefit-in-kind appropriate percentages, van and fuel benefit charges and HMRC mileage allowance payments.
Car BIK – CO₂ emissions table
| CO₂ | Electric range (mi) | 2025-26 | 2026-27 |
|---|---|---|---|
| 0 g/km | — | 3% | 4% |
| 1–50 g/km | 130+ | 3% | 4% |
| 1–50 g/km | 70–129 | 6% | 7% |
| 1–50 g/km | 40–69 | 9% | 10% |
| 1–50 g/km | 30–39 | 13% | 14% |
| 1–50 g/km | < 30 | 15% | 16% |
| 51–54 g/km | — | 16% | 17% |
| Each additional 5 g/km | — | plus 1% | plus 1% |
| Maximum reached at | — | 155+ g/km | 155+ g/km |
| Non-RDE2 diesel supplement | — | 4% | 4% |
| Maximum benefit in all cases | — | 37% | 37% |
What this means: Electric and ultra-low-emission cars rise by 1 percentage point in 2026-27 — review salary sacrifice projections before the new tax year.
Vans & fuel
| Item | 2025-26 | 2026-27 |
|---|---|---|
| Van benefit charge | £4,020 pa | £4,170 pa |
| Car fuel benefit charge | £28,200 pa | £29,200 pa |
| Van fuel benefit charge | £769 pa | £798 pa |
Mileage allowance payments (AMAPs)
| Vehicle | 2025-26 | 2026-27 | ||
|---|---|---|---|---|
| First 10,000 | Over 10,000 | First 10,000 | Over 10,000 | |
| Privately-owned cars and vans | 45p | 25p | 55p | 25p |
| Bicycle rate | 20p | 20p | 20p | 20p |
| Motorcycle rate | 24p | 24p | 24p | 24p |
| Passenger rate (each) | 5p | 5p | 5p | 5p |
What this means: The main car and van rate rises from 45p to 55p from 6 April 2026. If you pay more than HMRC's AMAP, the excess is taxable. If you pay less, employees can claim tax relief on the shortfall.
Advisory fuel rates
HMRC update advisory fuel rates quarterly. See the latest figures at gov.uk/guidance/advisory-fuel-rates.
Reliable, friendly and professional
Payroll support you can count on
Your Payroll Team offers a free 30-minute payroll health check covering compliance, statutory pay, NI categories and auto-enrolment.