Coronavirus (COVID-19) update

You can get instant help 24/7 from our virtual assistant or visit our Coronavirus help and support page for frequently asked questions about COVID-19. Customers who can’t pay now as a result of the Coronavirus pandemic, call us - we want to help you.

If you’re driving less, you may be able to temporarily lower your mileage and could be entitled to a refund.
Find out more on our lockdown car insurance refund page.

Company cars – is ‘free’ fuel worth it?

The offer of free fuel for your company car seems too good for many drivers to resist. However, nothing comes for free and it’s also classed as a taxable benefit. So how can you work out if it’s worth filling the tank yourself instead?

  • Work out your car’s tax liability as you would for company car tax purposes. We’ll take a figure of 18% as an example.
  • Take this percentage and multiply it by £14,400, a notional figure set by the taxman: £14,400 x 18% = £2592.
  • Multiply this by your rate of income tax (22% or 40%) to calculate your annual tax bill for ‘free’ fuel: £2592 x 22% = £570.
  • Compare this figure with how much it would cost you to fuel your own car for your expected annual mileage. If personal fuel works out more expensive than the tax, ask whether your employer will make an additional salary contribution to compensate for you opting out of the fuel scheme.