The vehicle benefit charges were updated following the Chancellor’s Budget speech. Where employees are provided with fuel for their own private use by their employers, the car fuel benefit charge is applicable. The fuel benefit charge is determined by reference to the CO2 rating of the car, applied to a fixed amount. The car fuel benefit charge will increase in 2022-23 to £25,300 (from £24,600). The fuel benefit is not applicable when the employee pays for all their private fuel.


Since 6 April 2021, the van benefit charge has been reduced to zero for vans that produce zero carbon emissions. This measure supports the government’s climate change agenda by encouraging the uptake up of vans that emit zero carbon emissions.