UK van owners face a £375 annual Vehicle Excise Duty (VED) bill from 1 April 2027, up from the current £360 fee, after the Treasury confirmed car tax increases in line with Retail Price Index (RPI) inflation.
VED rates rise annually in line with RPI, and 2027 is set to follow that pattern. Charges are expected to increase across petrol, diesel and electric vehicles, covering standard VED rates, first-year charges and older motors.
Van fees to rise by £15
Analysis from Pete Barden indicates vans registered on or after March 2001 will face higher costs when the changes take effect. Early Euro 4 and Euro 5 compliant vans and pre-2011 electric vans will pay £140 to use the road, but all other vans will be charged £375 from 1 April 2027.
Van drivers already saw a £15 rise earlier this year when rates increased from £345 to £360 annually.
Treasury confirms RPI uprating
The Treasury confirmed the planned VED price increases in its Budget report, published shortly after John Healey's statement last week. The report stated: "The Government will uprate VED rates for cars, vans and motorcycles in line with the Retail Prices Index (RPI) from April 1, 2027."
The news adds further pressure on van owners already facing challenges in 2026, with rising petrol and diesel prices heaping strain on tradespeople and workers who depend on their vehicles.
Fuel cost warnings for small businesses
Howard Cox, founder of FairFuelUK, previously warned that a typical small van covering 20,000 miles annually would likely face an extra £360 bill in fuel costs due to price surges. He cautioned that a small business operating three vans could be paying an additional £1,000 or more each year in fuel expenses alone.
