The Treasury has confirmed in a written statement that the van benefit charge and fuel benefit charges for cars and vans will be uprated by the consumer price index from 6 April 2021, as follows:
the van benefit charge will increase from £3,490 to £3,500;
the car fuel benefit charge multiplier will increase from £24,500 to £24,600; and
the van fuel benefit charge will increase from £666 to £669.
The announcement was made outside of the standard fiscal process to give both employers and HMRC time to prepare for the changes before the start of tax year 2021/22. A statutory instrument to make the changes is expected to be laid before the House of Commons on 9 March 2021 and a tax information and impact note published at Budget 2021.
The Treasury has confirmed in a written statement that the van benefit charge and fuel benefit charges for cars and vans will be uprated by the consumer price index from 6 April 2021, as follows:
the van benefit charge will increase from £3,490 to £3,500;
the car fuel benefit charge multiplier will increase from £24,500 to £24,600; and
the van fuel benefit charge will increase from £666 to £669.
The announcement was made outside of the standard fiscal process to give both employers and HMRC time to prepare for the changes before the start of tax year 2021/22. A statutory instrument to make the changes is expected to be laid before the House of Commons on 9 March 2021 and a tax information and impact note published at Budget 2021.
