Fleet operators and drivers are preparing for a series of tax changes in 2026, with impacts across company cars, vans and fuel costs. From April, benefit-in-kind (BIK) rates will rise by one percentage point, taking fully electric cars to 4% for 2026/27. For a basic-rate taxpayer driving a £40,000 EV, that lifts monthly tax from £20 to £26.67.
Plug-in hybrids affected by the new Euro 6e-bis emissions test will benefit from a temporary BIK easement. For eligible vehicles registered between January 2025 and April 2028, CO₂ emissions will be treated as 1g/km for BIK purposes, limiting sudden tax jumps.
Vehicle excise duty will increase with inflation, while the expensive car supplement for EVs priced above £50,000 rises from £425 to £440. Fuel duty remains frozen until September 2026, before staged increases later in the year – a freeze the Office for Budget Responsibility estimates has cost £100bn since 2011.
Van benefit charges and fuel benefit multipliers also increase from April, although a new 40% first-year allowance for leased vans aims to support fleet cashflow. Looking ahead, fleets are being urged by the Association of Fleet Professionals to engage with consultation plans for a future per-mile EV tax.
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