Fuel benefit charge calculator
Estimate the tax on free fuel for a company car, from the fixed HMRC multiplier, your car’s BIK rate and your tax band. 2025/26.
Your estimate
Your tax per year
£0
- Taxable fuel benefit (£28,200 × BIK%)
- £0
- Employer Class 1A NIC (15%)
- £0
Uses the 2025/26 fuel benefit multiplier of £28,200. Does not apply to fully electric cars, which have no fuel benefit charge. Employer Class 1A NIC also applies.
In plain English
The terms, explained
New to this? Here’s what the words on this page actually mean.
- Fuel benefit charge
- A separate benefit-in-kind tax charged when your employer pays for fuel you also use privately, on top of any company car tax.
- Fuel benefit multiplier
- A fixed figure set by HMRC each year, £28,200 for 2025/26, multiplied by your car’s BIK rate to find the taxable benefit.
- BIK rate
- The same CO₂-based percentage used for company car tax, from about 3% for electric cars up to 37% for the highest-emission petrol/diesel cars.
- Class 1A NIC
- National Insurance your employer pays on the fuel benefit, at 15%, on top of the tax you pay personally.
FAQ
Fuel benefit charge calculator, your questions answered
What is the fuel benefit charge?
If your employer pays for fuel you also use for private mileage in a company car, HMRC treats that as a taxable benefit, separate from the company car tax itself. It’s worked out by multiplying a fixed annual figure by your car’s BIK percentage.
How much is the fuel benefit charge for 2025/26?
The multiplier is £28,200. Multiply that by your car’s BIK rate (the same rate used for company car tax) to get the taxable benefit, then tax it at your income tax rate. A higher-rate taxpayer with a 25% BIK car pays around £2,820 a year.
Is it worth having your employer pay for private fuel?
Often not, unless your private mileage is very high. Because the multiplier is fixed regardless of the car’s actual fuel cost, most people are better off paying for their own private fuel and claiming a mileage rate for business trips instead. We can run the comparison for your car.
Does the fuel benefit charge apply to electric cars?
No, there’s no fuel benefit charge for a fully electric company car, because electricity isn’t treated as “fuel” for this rule. Charging costs paid by your employer for a company EV are generally tax-free.
Does my employer pay National Insurance on the fuel benefit too?
Yes, alongside company car Class 1A NIC, your employer also pays 15% Class 1A NIC on the fuel benefit value, which the calculator shows alongside your own tax.
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