Van tax and running costs (UK, 2026)
Published 23 October 2026 · Last updated 23 October 2026 · by Value My Van
Running a van costs more than just diesel. Here's what you'll actually pay: road tax, fuel, insurance, servicing, tyres, MOT, and the big one—depreciation.
VED (road tax)
Light goods vehicles under 3,500 kg pay a flat annual rate. As of April 2025, that's £335 per year for diesel or petrol vans, £0 for electric vans (gov.uk/vehicle-tax-rate-tables).
You pay when you tax the van (online, Post Office, or phone). Most people pay annually, but you can pay every 6 months (5% more expensive) or monthly by Direct Debit (also works out 5% more over the year).
If your van is over 3,500 kg, it's not a light goods vehicle—it pays a higher rate based on weight. Check the V5C.
Fuel
This varies wildly by how much you drive and what van you have. We'll use 20,000 miles per year (typical for commercial use) and £1.50/litre diesel (example price, October 2026).
Small van (Citroën Berlingo, Ford Transit Connect): 45–50 mpg. At 47.5 mpg and 20,000 miles, you'll use 1,916 litres = £2,874/year.
Medium van (Ford Transit Custom, VW Transporter): 35–40 mpg. At 37.5 mpg, 20,000 miles = 2,427 litres = £3,640/year.
Large van (Ford Transit LWB, Mercedes Sprinter): 30–35 mpg. At 32.5 mpg, 20,000 miles = 2,800 litres = £4,200/year.
Electric vans: Depends on electricity price (7p/kWh overnight EV tariff vs 24p/kWh standard). An E-Transit doing 20,000 miles at 2 miles/kWh uses 10,000 kWh. At 7p/kWh overnight = £700/year. At 24p/kWh public rapid = £2,400/year.
Insurance
Van insurance (class 1 goods carrying, no passengers for hire or reward) costs depend on your postcode, age, claims history, and what you're carrying.
Key factors that affect premiums:
- Age: Under-25s pay significantly more than over-30s with no claims history
- Postcode: Inner London/Birmingham/Manchester cost more than rural areas
- Van size: Larger vans cost more to insure
- No-claims discount: 5 years of no claims can cut premiums in half
Fully comp is usually only marginally more expensive than third party, so most people go fully comp. See our van insurance guide for detailed factors.
Servicing
Vans need servicing every 12 months or 12,500–20,000 miles (check your handbook). A full service includes oil and filter, air filter, fuel filter (diesel), brake fluid check, coolant top-up, and a visual inspection.
Main dealer service: £250–£400 for a small van, £350–£500 for a medium, £450–£600 for a large.
Independent garage: Typically 30–40% less. £180–£280 for a small van, £250–£350 medium, £300–£450 large.
Some vans have long-life service intervals (30,000 miles for some VW Transporters). That saves you one service every 18 months, but the service itself costs more because more needs doing.
Big services: At 60,000 miles or 3 years, you'll typically need cambelt/timing chain inspection or replacement (diesel vans: £400–£800 depending on engine). Some modern engines have timing chains that last 150,000+ miles, but check your handbook.
MOT
Vans over 3 years old need an annual MOT. The test costs £54.85 (Class 4, vans up to 3,000 kg). Vans between 3,000 and 3,500 kg are Class 7: £58.60 (gov.uk/getting-an-mot/mot-costs).
If it fails, you'll pay for repairs plus a retest (free if you bring it back within 10 working days and only the failed items were touched; £54.85 full retest if not).
Typical fail reasons: worn tyres, brake imbalance, emissions (diesel particulate filter issues), corroded brake pipes. Budget £100–£500 for MOT + minor repairs if the van is over 5 years old.
Tyres
Van tyres are load-rated and wear faster than car tyres (heavier vehicle, often loaded). Expect to replace rear tyres every 20,000–30,000 miles, fronts every 30,000–40,000.
Small van: £60–£100 per tyre fitted (e.g. 195/65 R15 or 205/65 R16).
Medium van: £80–£140 per tyre (e.g. 215/65 R16 or 215/60 R17).
Large van: £100–£180 per tyre (e.g. 225/65 R16 or 235/65 R16C).
At 20,000 miles/year, you might replace 4 tyres every 18 months (small van: £240–£400) or 2 years (medium/large: £320–£720). Annualised: £160–£360/year.
Other costs
Brake pads and discs: Front pads every 30,000–50,000 miles (£120–£250 fitted). Rear pads less often. Discs every 60,000–80,000 miles (£250–£500 front, £200–£400 rear).
Battery: £80–£180, lasts 4–6 years.
Wiper blades: £15–£30/pair, replace annually.
Windscreen chips: £50–£100 to repair if you don't have windscreen cover on your insurance.
AdBlue (diesel Euro 6): £10–£20 per 10-litre refill, every 3,000–6,000 miles. Annualised: £40–£100/year.
Clean Air Zones
If you drive in London ULEZ (most of Greater London), Birmingham CAZ, Bristol CAZ, Bath CAZ, Portsmouth CAZ, Bradford CAZ, or Sheffield CAZ, non-compliant vans face daily charges:
- London ULEZ: £12.50/day for pre-Euro 6 diesel vans (registered before September 2016) or pre-Euro 4 petrol vans (pre-2006) (TfL)
- Birmingham, Bristol, Bath, Portsmouth, Bradford, Sheffield CAZs: £8–£50/day depending on zone and vehicle type
If you drive in a CAZ 5 days a week, that's £3,250–£13,000 per year. Electric vans are exempt.
Depreciation
This is your biggest cost. A medium van bought new loses roughly half its value in the first 3 years. Based on our depreciation data, a £30,000 new Transit Custom might be worth £10,800–£13,800 at 3 years/60,000 miles (trade value). That's £5,400–£6,400/year in depreciation.
Buy a 3-year-old van instead and hold it for 3 more years (to age 6), and it depreciates much more slowly: from £12,000 to £7,500 = £1,500/year.
Total annual running costs
Here's what 20,000 miles/year actually costs (medium diesel van, bought new, 3-year ownership, no CAZ charges):
| Item | Annual cost |
|---|---|
| Depreciation | £5,400–£6,400 |
| Fuel (diesel, 37.5 mpg) | £3,640 |
| Insurance | Varies (see insurance guide) |
| Servicing | £250–£350 |
| VED (road tax) | £335 |
| Tyres | £200–£300 |
| MOT + minor repairs | £100–£200 |
| AdBlue | £60 |
| Total | ~£10,000–£12,000/year (+ insurance) |
Insurance varies significantly by age, postcode, and claims history—see our insurance guide for factors. Total shown excludes insurance.
If you buy a 3-year-old van instead: Depreciation drops to ~£1,500/year, reducing total running costs substantially.
Business mileage rates
If you're self-employed and use your van for business, HMRC lets you claim mileage allowance at 45p per mile for the first 10,000 business miles, then 25p/mile after that (rates for 2025/26 tax year per gov.uk mileage allowances).
Alternatively, you can claim actual costs (fuel, insurance, servicing, VED, depreciation) multiplied by the business-use percentage. Keep receipts and a mileage log.
Electric vans: running costs
Electric vans have much lower running costs (no road tax, cheaper "fuel", less servicing) but higher purchase prices. At 20,000 miles/year:
| Item | Annual cost |
|---|---|
| Depreciation (varies widely) | £4,000–£7,000 |
| Electricity (7p/kWh overnight) | £700 |
| Insurance | Varies (see insurance guide) |
| Servicing (less frequent) | £150–£250 |
| VED (road tax) | £0 |
| Tyres | £250–£350 |
| MOT (after 3 years) | £55 |
| Total | ~£5,200–£8,400/year (+ insurance) |
If you're in a CAZ and avoiding £3,000–£13,000/year in charges, an electric van pays for itself. Outside CAZs, it's cheaper to run but costs more upfront.
Use our van valuation tool to estimate what your van will be worth in 3–5 years, which helps you calculate your true depreciation cost.
Sources: gov.uk/vehicle-tax-rate-tables (VED rates), gov.uk mileage allowances (HMRC 45p/25p rates), fuel prices from RAC Fuel Watch October 2026, insurance estimates from Compare The Market / Confused.com October 2026, service costs from main dealer and independent garage quotes. MOT fees per gov.uk/getting-an-mot. Published 23 October 2026 by Value My Van.