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There are two types of van road tax people pay on their vans - vehicle excise duty and personal tax.
You’ll likely be familiar with what most people refer to as road tax, but it's also known as vehicle excise duty (VED) which is the tax you pay to use the roads. You pay this once a year as a lump sum, every six months or monthly via direct debit.
Looking for tax information on pick-up trucks? Read our guide on pick-up truck tax.
How much is the tax on your van will depend on whether you want to pay it in one lump sum or by direct debit.
For 2022/2023 most vans will have to pay £290 in tax as a lump sum or, £159.50 as a lump sum for six months or £152.25 as a recurring six monthly direct debit. There’s also the option of paying £25.38 a month by direct debit, which will mean you pay £304.50 overall.
As with everything in life, though, there are some exceptions. These are based around what year the van was first registered with the key dates being before 1 March 2001 and then two periods of between 1 March 2003 and 31 December 2006 and between 1 January 2009 and 31 December 2010. This is because Euro 4 and Euro 5 vans pay slightly different rates (they’re actually the cheapest of all).
Vans registered from 1 March 2001 (TC39) | ||
Road tax (VED) cost | £290 | |
Payment type | Monthly | Six monthly |
Outright | n/a | £159.50 |
Direct Debit | £25.38* | £152.25 |
Euro 4 vans registered between 1 March 2003 and 31 December 2006 (TC36) |
£140 |
Euro 5 vans registered between 1 January 2009 and 31 December 2010 (TC36) |
£140 |
Registered before 1 March 2001 up to 1,549cc engine size (TC11) |
£180 |
Vans registered before 1 March 2001 with larger than 1,549cc engine size (TC11) |
£295 |
The other type of van tax you might have to pay is personal tax, or a BIK (Benefit In Kind). This is a charge some employees will have to pay if they are allowed to use work vans for their own personal use.
Thankfully if you only use your van for business purposes you don’t have to pay, and if you are self-employed or a sole trader you won’t have to pay the company van tax either. It’s only if you’ve bought a van through your company, or if a company has given you a van and instructed you that you can use it for personal use. The Benefit In Kind (BIK) isn’t paid to your employer, but it goes to HM Revenue and Customs (HMRC), as it’s a tax that is proportionate to your salary.