Company Car Fuel Benefit Rules

   Fuel Benefit

Company Car Fuel Benefit

When free private fuel is provided for a fully electric powered company car then there's no taxable benefit on the value of free recharging of the vehicle for business or private mileage.

However, when free private fuel is provided for a company car with an internal combustion engine ('ICE') - such as petrol or diesel - or a hybrid ICE/electric powertrain then there is an annual taxable benefit based upon a notional value known as the 'fixed benefit multiplier'.

The amount of the fixed benefit multiplier is then multiplied by a percentage derived from the car's Carbon Dioxide ('CO2') emissions measured in Grammes Per Kilometre ('GP/Km').

To see a calculation of annual fuel benefit go to our fuel benefit calculator.

To work our if private fuel benefit is worthwhile for you use our fuel benefit analyser.

What is the 'fixed benefit multiplier'?

For tax purposes the 'fixed benefit multiplier' is set each year by the Treasury as a notional amount to determine the value of free private fuel.

The fixed benefit multiplier for 2020/2021 tax year is £24,500.

What is 'CO2 Output'?

CO2 output is determined by the amount of CO2 that a car emits from its exhaust, measured in Grammes Per Kilometre travelled (GPK/m).

The official value for a car is published by the Vehicle Certification Agency (“VCA”), an agency of the Department of Transport.

Published CO2 ratings are generally only available for cars that have been sold since 1 January 1998.

Calculating Fuel Benefit


To calculate the annual taxable benefit of free fuel provided in a company car:

For Petrol/Diesel engined cars:
  1. Go to the table for the date of first registration of the vehicle.
  2. Look up the CO2 output of the car in the 1st column of the table (e.g. for 63GP/Km look at the row 60-64).
  3. Read across the table to find the taxable percentage.
  4. If your car has a diesel engine, add a 4% surcharge to the table figure (up to a maximum of 37% including the surcharge) unless the car's engine meets the RDE2 standard for emissions.
  5. Multiply the fixed benefit by the percentage found.

For Hybrid engined cars:
  1. Go to the table for the date of first registration of the vehicle.
  2. Look up the CO2 output of the car in the 1st column of the table (e.g. for 45GP/Km look at the rows for 1-50).
  3. Read across to the next column to find the car's range in miles on battery power only, then read across that line to the appropriate tax year for the taxable percentage.
  4. If your car has a diesel engine, add a 4% surcharge to the table figure (up to a maximum of 37% including the surcharge) unless the car's engine meets the RDE2 standard for emissions.
  5. Multiply the fixed benefit by the percentage found.

If the car’s CO2 output exceeds the maximum figure, use the maximum.

For example, in the 2020/2021 tax year, for a petrol fuelled car, using the fixed benefit multiplier of £24,500, and assuming your company car's CO2 output is 100GP/Km, look down the 1st column of the table to find 100.

Next, move across to the current tax year column to find the taxable percentage (24%), then multiply £24,500 by 24% = £5,784 annual company car fuel benefit.



CARS REGISTERED
BEFORE 6 APRIL 2020

CO2
OUTPUT
(G/PKm)

ELECTRIC
ONLY
RANGE
(MILES)

PERCENTAGE OF LIST PRICE

2019-20 2020-21 2021-22 2022-23
0 N/A 16 0 1 2
1-50 >=130 16 2 2 2
1-50 70-129 16 5 5 5
1-50 40-69 16 8 8 8
1-50 30-39 16 12 12 12
1-50 <30 16 14 14 14
51-54 N/A 19 15 15 15
55-59 N/A 19 16 16 16
60-64 N/A 19 17 17 17
65-69 N/A 19 18 18 18
70-74 N/A 19 19 19 19
75 N/A 19 20 20 20
76-79 N/A 22 20 20 20
80-84 N/A 22 21 21 21
85-89 N/A 22 22 22 22
90-94 N/A 22 23 23 23
95-99 N/A 23 24 24 24
100-104 N/A 24 25 25 25
105-109 N/A 25 26 26 26
110-114 N/A 26 27 27 27
115-119 N/A 27 28 28 28
120-124 N/A 28 29 29 29
125-129 N/A 29 30 30 30
130-134 N/A 30 31 31 31
135-139 N/A 31 32 32 32
140-144 N/A 32 33 33 33
145-149 N/A 33 34 34 34
150-154 N/A 34 35 35 35
155-159 N/A 35 36 36 36
160-164 N/A 36 37 37 37
165+ N/A 37 37 37 37


CARS REGISTERED
FROM 6 APRIL 2020

CO2
OUTPUT
(G/PKm)

ELECTRIC
ONLY
RANGE
(MILES)

PERCENTAGE OF LIST PRICE

2020-21 2021-22 2022-23
0 N/A 0 1 2
1-50 >=130 0 1 2
1-50 70-129 3 4 5
1-50 40-69 6 7 8
1-50 30-39 10 11 12
1-50 <30 12 13 14
51-54 N/A 13 14 15
55-59 N/A 14 15 16
60-64 N/A 15 16 17
65-69 N/A 16 17 18
70-74 N/A 17 18 19
75-79 N/A 18 19 20
80-84 N/A 19 20 21
85-89 N/A 20 21 22
90-94 N/A 21 22 23
95-99 N/A 22 23 24
100-104 N/A 23 24 25
105-109 N/A 24 25 26
110-114 N/A 25 26 27
115-119 N/A 26 27 28
120-124 N/A 27 28 29
125-129 N/A 28 29 30
130-134 N/A 29 30 31
135-139 N/A 30 31 32
140-144 N/A 31 32 33
145-149 N/A 32 33 34
150-154 N/A 33 34 35
155-159 N/A 34 35 36
160-164 N/A 35 36 37
165-169 N/A 36 37 37
170+ N/A 37 37 37


Electric Cars

Please note that for electric vehicles there is currently no Private Fuel Benefit tax.


Fuel Benefit Calculator

If you want to know whether the benefit of free private fuel is worthwhile then use our fuel benefit calculator.

Our calculator will work out whether private fuel benefit is worthwhile and, if not, explain your options so that you don't lose from giving up the benefit.





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(+44 1792 224319 outside UK)

info@drivesmart.co.uk