Where employees are provided with fuel for their own private use by their employers, the car fuel benefit charge is applicable. The fuel benefit charge is determined by reference to the CO2 rating of the car, applied to a fixed amount. The car fuel benefit charge in 2021-22 is £24,600. The fuel benefit is not applicable when the employee pays for all their private fuel use.
The standard benefit charge for the private use of a company van is £3,500. A company van is defined as ‘a van made available to an employee by reason of their employment.’ There is an additional benefit charge for fuel for a van with significant private use. The limit for 2021-22 is £669. If private use of the van is insignificant then no benefit will apply.
HMRC’s guidance concerning the fuel charges has been belatedly updated for the current tax year.