Company Car Fuel Benefit Calculator
Work out the tax on employer-paid private fuel and compare it with the fuel's real retail value. The break-even result shows whether accepting free fuel actually saves you money.
Enter the retail value of private fuel your employer would pay. Business-only fuel does not create this benefit.
Use fewer than 12 only when the benefit was permanently withdrawn and not reinstated in the same tax year.
Decision on your numbers
Costs £1,004 more than the fuel
You need at least £3,504 of private fuel for the benefit to break even.
Fuel Benefit Multiplier
£29,200Taxable Fuel Benefit
£8,76030% car BIK rate
Income Tax Cost
£3,504£292/month
Private Fuel Value
£2,500Partial repayments normally do not reduce the car fuel benefit: all private fuel must be repaid for the relevant period to remove the charge.
Why the break-even point matters
The HMRC fuel benefit does not follow the number of private miles you drive. A 40% taxpayer with a high-emission company car can therefore face several thousand pounds of tax even if the employer only buys a modest amount of private fuel.
Business mileage reimbursements within the company-car rules do not by themselves create this private-fuel benefit. The charge concerns fuel available for private journeys, including commuting.
Frequently asked questions
How is company car fuel benefit calculated?
For 2026/27, the £29,200 fuel benefit multiplier is multiplied by the car's company-car appropriate percentage. The resulting cash equivalent is taxed at the employee's marginal income tax rate.
Is free company car fuel usually worth it?
It depends on the retail value of private fuel used. The tax charge is based on a fixed multiplier, not actual fuel consumed, so low-mileage drivers can pay more tax than the fuel they receive.
Can I make a partial repayment to reduce fuel benefit?
Generally, all private fuel for the relevant period must be made good for the charge to be removed. A partial contribution does not simply reduce the cash equivalent pound for pound.
Is electricity for an electric company car a fuel benefit?
Electricity is not treated as fuel for the company car fuel benefit charge, so a pure electric car does not create this fixed fuel benefit.