Company Van BIK Tax — £25,000 Salary
van + private fuel · BIK value: £4,717 · England & Wales · 2025-26
Company van BIK tax breakdown
| Van BIK charge (£3,960 van + £757 private fuel) | £4,717/year |
| Gross salary | £25,000 |
| Income Tax on van BIK | £943/year |
| National Insurance on van BIK | £378/year |
| Total annual tax cost | £1,321/year |
| Monthly tax cost | £110/month |
Frequently asked questions
How much tax do I pay on a company van on a £25,000 salary in 2025-26?
On a £25,000 salary, the company van BIK (£3,960 van + £757 private fuel = £4,717) costs £943 in Income Tax and £378 in National Insurance — £1,321/year (£110/month).
What is the company van BIK charge in 2025-26?
The company van BIK is a fixed £3,960/year regardless of the van value. If your employer also pays for private fuel, an additional £757/year fuel benefit charge applies. This compares favourably to company cars, which use a percentage of list price based on CO2 emissions.
How is company van BIK tax collected?
HMRC reduces your personal allowance by the BIK value (£4,717), increasing the tax taken through PAYE each month. Your employer reports the BIK on a P11D form each April. No separate bill is issued — the additional tax is collected gradually through your salary.
Is my company van exempt from BIK if I only use it for work?
Yes — if there is no private use of the van whatsoever (including home-to-work travel, unless the workplace is temporary), the van is not a BIK. You must be able to demonstrate this to HMRC if challenged. Zero-emission vans also have a nil BIK charge in 2025-26.
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