Fuel benefit charge calculator, 2026/27
If your company provides private fuel for a car or van, HMRC charges a fixed benefit regardless of actual fuel used. Use this calculator to compare a car fuel benefit against the flat-rate van fuel benefit and see which route costs less overall.
The fuel benefit charge calculator runs on the rates and thresholds HMRC has published for the 2026/27 tax year, so the figures you see reflect the position your company is actually filing on rather than a historic set of bands. Change any input and the result recalculates immediately, with no sign-up and nothing sent anywhere.
If you are a director of a UK limited company, use it as a first look before a decision rather than as the decision itself. Van fuel benefit for 2026/27 is a flat £798 regardless of van value or emissions. Real company positions bring in other income, reliefs, group structures and prior year adjustments that a single page of inputs cannot see, which is why the workings are written out below under employee benefits & company cars. Read those, then check the numbers against your own accounts, and speak to us if anything looks materially different from what you expected.
Last reviewed 12 September 2026 for the 2026/27 tax year. Reviewed by Waqas Sagar, Member of ICAEW, Fellow of ACCA, Fellow of AAT.
Regulated by
Regulated & AML supervisor
AAT fellow member
Xero Gold PartnerCertified advisor
QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityFuel benefit charge calculator
Result, 2026/27
Taxable fuel benefit
Your annual income tax
40.0% marginal rateEmployer Class 1A NIC (15%)
Vehicle type used
Illustration only, figures are based on the rates you have selected and the information entered. Please check your own position with us before acting.
Estimates for the 2026/27 tax year using published GOV.UK rates. Switch between 2026/27 and 2025/26 above.
How this is calculated
Cars and vans are taxed on private fuel very differently. A car's fuel benefit is the multiplier of £29,200 for 2026/27 multiplied by the same CO2-based percentage used for the car benefit itself, so higher-emission cars produce a bigger fuel charge.
A van's fuel benefit, by contrast, is a single flat figure of £798 for 2026/27, irrespective of the van's value, age or emissions, alongside the separate flat van benefit charge of £4,170 for private use of the van itself.
Both figures are taxed at your marginal income tax rate and attract employer Class 1A National Insurance at 15%, making the true cost of 'free' fuel considerably higher than most people expect.
Car versus van fuel benefit in practice
For directors who qualify for a van rather than a car — broadly, a vehicle primarily suited to carrying goods with only insignificant private use beyond home-to-work travel — the flat van fuel benefit is usually far cheaper than a car fuel benefit on any car with a mid-to-high CO2 percentage.
However, HMRC applies the van definition strictly, and double-cab pickups and similar vehicles have had their classification challenged in recent years, so it is worth checking a vehicle's status before assuming van rates apply.
Reducing the charge
The most reliable way to avoid either fuel benefit is for the individual to pay for all private fuel personally and not be reimbursed by the company, keeping a mileage log to support the split between business and private use.
Where private mileage is low, this almost always beats accepting the benefit and paying the associated tax and NIC.
What this means for your company
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
Frequently asked questions
What counts as insignificant private use for a van?
HMRC treats occasional use, such as an unplanned personal detour or taking the van home the night before an early start, as insignificant. Regular personal errands or weekend use would not qualify, and the van benefit charge would then apply.
Does a pooled van avoid the benefit entirely?
Yes, if the van is genuinely shared by several employees, kept on business premises overnight, and any private use is merely incidental, no benefit arises for any of them.
Can the van fuel benefit be time-apportioned?
Yes, if the van or fuel is only provided for part of the tax year the flat charge is reduced proportionately for the number of days it was unavailable.
Is it worth having a van fuel benefit if I do a lot of private miles?
Often yes, because the flat charge does not increase with higher private mileage, unlike buying your own fuel, so heavy private users of a van can come out ahead compared with a car in a similar position.
Keep going
Related calculators
Same rates, different question.
Car fuel benefit calculator
Work out the taxable benefit and personal tax cost of employer-paid private fuel for a company car in 2026/27, and see if it's worth keeping.
CalculatorVan benefit calculator
Work out the flat-rate income tax and employer NIC on private use of a company van for 2026/27, plus the extra charge if fuel is included.
CalculatorElectric car tax calculator
See the personal and company tax cost of running an electric company car in 2026/27, including the benefit-in-kind charge on the list price.
CalculatorCorporation tax calculator
Work out your limited company corporation tax for 2026/27, including the 19% small profits rate, the 25% main rate and marginal relief between £50,000 and £250,000.