- BIK remains flat-rate for vans and pickups
- Small increase in annual charges
- Exact VED increase still TBC
Chancellor Philip Hammond has announced details of the autumn Budget 2017, and we’re pleased to report there are no major tax changes for van owners and operators.
That is not to say there are no van or pickup taxation rises, however – as road tax (VED), benefit-in-kind (BIK) and fuel benefit tax rates are all set to increase in the 2018/2019 tax year.
Not by a huge amount, but still…
What are the 2018/2019 van benefit-in-kind tax rates?
BIK on vans (and pickups) for the 2018/2019 tax year remains at a flat-rate, but this rate increases to £3,350 – £130 more than the 2017/2018 amount of £3,230.
This translates into an annual tax bill of £670 for 20% BIK payers, or £1,340 for 40% BIK payers; that’s a monthly bill of just under £56 and £112, respectively – up from £54 and £108.
What is the van fuel benefit tax rate for 2018/2019?
The benefit for private use fuel in vans in pickups also increases in 2018/2019, from £610 to £633.
This, too, is taxed at 20% or 40%, meaning you’ll actually pay £126 or £253 a year, respectively.
How much will van and pickup road tax cost in 2018/2019?
Typically, at the time of writing, HMRC is yet to confirm the exact amount that vehicle excise duty is set to increase by for van and pickup owners in 2018/2019.
However, it has said that the increase will be ‘no more than £10 extra’ over the 2017/2018 rates, which vary depending on when your van or pickup was registered.