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Is free fuel from work worth it?

Free fuel for personal trips is taxed however few miles you drive. See whether it pays.

The car

RDE2 diesels avoid the diesel supplement. It's on the car's documents.

On the V5C logbook or P11D.

Your driving

Not counting work trips. Your commute counts as personal.

Around 12p to 18p for most cars.

Your pay

We use it to work out your tax rate.

Scotland has its own income tax rates.

Your answer

Enter the car's CO2, your miles and your salary to see the answer.

About this calculator

For company car drivers whose employer offers a fuel card for personal miles.

What happens to your answers

We don’t keep them. Your answers go to our server to do the sums and aren’t stored or logged. If you copy a link to your answers, they’re in the link itself, so only share it with people you trust.

How it’s worked out

Free fuel is taxed as if it were pay: £29,200 times the same share used for the car itself. That's a fixed amount, so it only pays off if you drive a lot of personal miles.

Worked example

Free fuel isn't worth it: you'd pay £3,450 a year in tax for about £750 of personal fuel. Paying for your own saves £2,700.

2026/27 tax year · petrol · salary £50,000

Worked example, step by step
Free fuel taxed as pay: £29,200 × 30% (120g/km)£8,760
Tax you'd pay on it£3,450
5,000 personal miles at 15p a mile£750

Worked out using HMRC's published rates for the 2026/27 tax year (6 April 2026 to 5 April 2027), on a yearly basis.

Questions people ask

Can I keep the fuel card for work trips only?

Yes. If you pay back the full cost of all personal fuel by the deadline, there's no fuel charge at all.

More free calculators

Talk to us about your tax.

A free call with the team. We’ll contact you within 24 hours.

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