Unlike the previous tax year, the 2025/2026 tax year includes a few changes to the rates and relevant amounts.

The Class 1A rate on benefits in kind (BiKs) reported on a P11D(b) increases along with Secondary Class 1 national insurance by 1.2 percentage points, from 13.8% to 15%.

The Class 1A rate on termination and sporting testimonial payments over £30,000 also increases by 1.2 percentage points, from 13.8% to 15%.

The Class 1B rate on BiKs reported on a PAYE Settlement agreement (PSA) also increases by 1.2 percentage points, from 13.8% to 15%.

The appropriate percentages used to calculate the taxable benefit of a company car are unfrozen. Here are the rates for the 2024/2025 tax year, along with the rates for the 2025/2026 tax year:

The taxable benefit for use of a company van increases to £4,020 per year. The taxable cost of the benefit is divided by the number of employees who use the van. (Up from £3,960 in the 2024/2025 tax year.)

The car fuel benefit charge is £28,200. This is multiplied by the ‘appropriate percentage’, which is based on the fuel type of the car, and CO2 emissions. (Up from £27,800 for the 2024/2025 tax year.) Further information can be found on HMRC’s website.

The van fuel benefit charge is £769. (Up from £757 for the 2024/2025 tax year.) Further information can be found on HMRC’s website.

The official rate of interest for calculating a beneficial loan using the normal averaging calculation method, or for employer-provided accommodation, has not yet been announced for the 2025/2026 tax year.

The advisory fuel rates, used for employees reimbursing personal mileage where fuel is provided by the employer, or reimbursing employees for business travel in their company cars, are updated every three months. Please refer to HMRC’s guidance for the updated mileage rates.