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Van Tax: everything you need to know

By Tom Gibson | October 20, 2023

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Working out what tax you need to pay on your van can seem a little overwhelming but in reality it’s pretty simple.

Van Tax: everything you need to know

Working out what tax you need to pay on your van can seem a little overwhelming but in reality it’s pretty simple.

Road tax is officially known as Vehicle Excise Duty or VED and is paid to the DVLA on either an annual or monthly basis. It works out slightly cheaper to pay upfront annually if you can afford to do so.

Do you actually own a van?

This might sound a little silly but in order to pay the right road tax you need to be able to define the vehicle you have.

The set of criteria to define a van is that your vehicle is predominantly used for carrying goods rather than people and its gross weight (fully laden) is 3,500kg or below.  

How much is road tax for a van?

The cost depends on the van’s age and emissions standards. You can check the tax status of your van here and follow the steps to get it taxed, while this table explains how much you’ll pay…

Date You Registered Your Van Current Cost (Single Payment - Annual) Current Cost (Monthly DD For 12 Months) Current Cost (Single Payment - For 6 Months) Current Cost (Monthly DD For 6 Months)
All Vans Registered after 1/3/01 including Euro 6 £260 £273 £143 £136.50
Euro4 vans registeredfrom 1/3/03 to 31/12/06 £140 £147 £77 £73.50
Euro5 vans registeredfrom 1/1/09 to 31/12/10 £140 £147 £77 £73.50
Electric Vans £0 £0 £0 £0

How to pay your road tax for your van

There are different ways to pay and you’ll need different documentation depending on which way you go.

You’ll also need different documentation if you’re taxing for the first time or renewing. We’d encourage you to pay online if you can as that’s typically the quickest but you can pay over the phone or at the post office.

What is company van tax?

If you use a company van for personal use you will need to pay company van tax, also known as the Van Benefit Charge.

Personal use includes your work commute although if you are using your van privately you are allowed to make a quick snack stop or get a coffee.

What is the Van Benefit Charge?

The Van Benefit Charge is an annual benefit in kind tax and is a fixed amount, as opposed to being based on emissions. If you pay 20% tax, you'll pay £670 a year and if you pay the higher tax rate of 40%, you'll pay £1,340 a year.

You pay this tax at a reduced rate if you use an electric van so for the 20% taxpayer, you'll pay £269 per year and for the 40% taxpayer, you'll pay £536 per year.

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