Fuel Benefit Charge Calculator 2026/27

Found on your vehicle's V5C registration document
Estimated value of fuel provided by employer for your private journeys

Company Car Fuel Benefit Explained

If your employer provides fuel for private use in your company car, you are taxed on the fuel benefit charge. This is a fixed charge based on the CO2 emissions percentage of your car multiplied by the annual fuel benefit multiplier (£27,800 for 2026/27), regardless of how much fuel you actually use privately.

The fuel benefit charge is often a poor deal for lower-mileage drivers. A basic-rate taxpayer with a 120g/km petrol car faces a CO2 percentage of 28%, giving a fuel benefit of £7,784 and an income tax cost of £1,557 per year. If you drive fewer than roughly 7,000 private miles per year, you would typically spend less buying your own fuel.

Diesel Supplement

Diesel cars that do not meet RDE2 emission standards attract a 4 percentage point supplement on the CO2 percentage (capped at 37%). RDE2-compliant diesels are treated the same as petrol cars. Check your vehicle's documentation to confirm RDE2 status.

Frequently Asked Questions

How is the fuel card benefit calculated in the UK?

The fuel benefit charge is calculated by multiplying the appropriate CO2 percentage by the fuel benefit multiplier for the year. For 2026/27, the multiplier is £27,800. The CO2 percentage is the same percentage used to calculate the company car benefit charge, ranging from 2% for zero-emission vehicles to 37% for high-emission cars.

What is the fuel benefit multiplier for 2026?

The fuel benefit multiplier for 2026/27 is £27,800. This is the fixed figure set by HMRC each tax year and is used in the fuel benefit charge calculation regardless of the actual cost of fuel provided to the employee. The multiplier increases each year broadly in line with inflation.

Is a company fuel card worth having?

Whether a fuel card is worth having depends on your annual private mileage and the cost of fuel versus the tax you pay on the benefit. For high-mileage drivers (15,000+ private miles per year), the fuel saving often exceeds the tax cost. For low-mileage drivers (under 5,000 private miles), the fixed fuel benefit charge is typically more expensive than simply paying for private fuel yourself.

Can I avoid fuel benefit tax?

You can avoid fuel benefit tax by reimbursing your employer for all private fuel used. The reimbursement must cover 100% of private fuel costs — even partial reimbursement does not reduce the fuel benefit charge. Alternatively, you can opt out of the fuel card entirely and pay for all fuel personally. There is no partial reduction for part-year availability unless the benefit is formally withdrawn.

How do I report fuel benefit on P11D?

Fuel benefit for company cars is reported in section F of form P11D, alongside the company car benefit. You enter the car's CO2 percentage, the fuel benefit multiplier, and the resulting fuel benefit charge. If the employee reimburses the employer in full for private fuel, the fuel benefit should be reported as nil. The P11D must be submitted to HMRC by 6 July following the tax year end.