Van owners in the UK are now paying £360 a year in Vehicle Excise Duty (VED) after a rise introduced in April 2026, an increase overseen by former Chancellor Rachel Reeves. The new fee applies to all vans that do not meet Euro 4 or Euro 5 emissions standards, with bills rising from £345 to £360 for the current tax year.
Which vans are affected
VED fees are normally calculated based on a vehicle's registration date and total emissions, but van owners face a flat rate set by the DVLA. Euro 4 and Euro 5 compliant vans registered after March 2001 continue to pay £140 per year, with no change applied to those drivers in 2026. All other vans are subject to the higher £360 charge.
The spring 2026 rise is larger than the increase van owners saw in April 2025, when bills went up from £335 to £345 per annum.
How VED payments work
Motorists can pay VED fees in one upfront payment or spread the cost over the year, with options to pay for six or 12 months or on a monthly rolling basis. Those who pay in instalments face a higher annual rate due to a built-in 5% surcharge applied to the fees.
AutoTrader previously explained that VED, sometimes referred to as road tax, is a legal requirement for driving any van or vehicle on UK roads, and that working out VED is usually simpler for vans because owners pay a flat rate set out by the DVLA.
Future increases expected
HMRC previously said the Government would introduce legislation in Finance Bill 2025-26 to uprate VED rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027, taking effect from April 1, 2026. VED fees are linked to RPI inflation and usually increase every 12 months.
Bills are expected to rise again in April 2027, though the scale of the increase is not yet known. A new VED announcement could be made by new Chancellor John Healey around his Autumn Budget, scheduled for the end of October.
