Question 1

Is free fuel from my employer worth it?

Accepted Answer

Compare the tax on the fuel benefit with what you would spend on your own private fuel. Below the break-even mileage, buying your own fuel is cheaper with the figures entered. Above it, employer-paid private fuel is worth more than the fuel benefit tax.

Question 2

How is the company car fuel benefit calculated?

Accepted Answer

HMRC multiplies the tax-year fuel benefit multiplier by your car’s BIK percentage. For 2026/27, the multiplier is £29,200. Applying your income tax rate to that benefit estimates your tax. The car’s list price does not determine this fuel benefit.

Question 3

Can I avoid the fuel benefit charge by paying some fuel costs back?

Accepted Answer

A partial repayment does not reduce the charge. You must be required to repay and repay the full cost of all private fuel by 6 July after the tax year to remove it. Check the agreement and records with your employer.

Question 4

Does commuting count as private mileage?

Accepted Answer

Ordinary travel between home and a permanent workplace counts as private mileage for these fuel rules. Include it when comparing your private fuel costs.

Question 5

Do electric company cars have a fuel benefit charge?

Accepted Answer

Electricity is not fuel for the car fuel benefit charge. This also applies to electricity used by a plug-in hybrid company car, although employer-paid petrol or diesel for private journeys can still create a fuel benefit. Company car BIK tax is separate.

Need cover for the company car itself?

Need cover for the company car itself?

Fuel Benefit ChargeCalculator

Need cover for the company car itself?

Need cover for the company car itself?