Vans and cars look similar but are taxed differently. Understanding the distinction between a van and a car for VED purposes is important — misclassifying a vehicle can lead to incorrect tax payments or penalties from DVLA.

Vans Pay a Different VED Rate

Goods vehicles — defined by their primary purpose of carrying goods — pay VED based on their revenue weight, not CO2 emissions. The standard annual rate for a van is currently £290 per year. This is higher than the £190 standard rate for most cars. However, zero-emission vans pay £0 for the first year and £0 for the standard rate — the same favourable treatment as zero-emission cars.

Revenue Weight Determines Van Classification

A vehicle is classified as a van — and subject to goods vehicle VED rates — if its maximum authorised mass (MAM) exceeds 3,500kg. MAM is the weight of the vehicle plus its maximum load capacity. A standard transit van typically has an MAM of around 3,500kg, placing it squarely in the goods vehicle category. Vehicles with MAM under 3,500kg are taxed as cars, regardless of their design or intended use.

Pickup Trucks: A Grey Area

Pickup trucks with a MAM under 3,500kg are classified as cars for VED purposes, even though they look like commercial vehicles. This means they are taxed on CO2, not weight. A petrol pickup under 3,500kg MAM pays £190 standard rate, while a zero-emission electric pickup pays £10. However, some double-cab pickups with permanently fixed load beds have been reclassified by the upper tribunal — check the current DVLA classification before buying.

Company Vans vs Company Cars

For company vehicle tax purposes, vans and cars are treated differently. Company van drivers pay a van benefit charge if the van is available for private use — currently £3,960 per year for 2026-27 regardless of the van's value or CO2. Company car drivers pay BIK based on a percentage of the P11D value, which varies with CO2. A high-value electric van may cost more in van benefit charge than an electric car — worth comparing when choosing a company vehicle.

Motorhomes and Campervans

Motorhomes and campervans have their own VED classification based on design and weight. A motorhome with MAM over 3,500kg pays goods vehicle rates. Those under 3,500kg MAM are taxed as private light goods vehicles — essentially the same as a car, based on CO2. Some older motorhomes converted from vans may fall into transitional VED categories. Verify the classification on the V5C before purchasing or taxing a motorhome.

Classic Vans and Historic Vehicle Exemption

Vans and goods vehicles over 40 years old that are substantially unchanged may qualify as historic vehicles and be exempt from road tax. However, the definition of historic for goods vehicles is stricter than for cars. A pre-1986 van may still need to pay goods vehicle VED if it has been significantly modified. Use the car tax calculator at Cartax.online to check VED for specific vehicle types.