Fuel benefit charge calculator, 2026/27

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 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.