Car Fuel Benefit Costs to Rise Again From April 2026

Car fuel benefit costs to rise again from April 2026

If your business provides company cars or vans with fuel for private use, there is another cost increase on the horizon. HMRC has confirmed that car and van fuel benefit charges will rise for the 2026/27 tax year, in line with inflation, with the car fuel benefit multiplier increasing to £29,200 from 6 April 2026. While this change is driven by inflation rather than policy, it still has real tax and National Insurance consequences for both emplo…

Car fuel benefit multiplier increase: What businesses need to know

From April 2026, the cost of providing fuel with company cars and vans is rising again. HMRC has confirmed that car and van fuel benefit charges will increase in line with inflation for the 2026/27 tax year, pushing the car fuel benefit multiplier up to £29,200. If your business provides fuel for private use in company vehicles, this change will directly affect both your employees’ Income Tax bills and your Employer National Insurance costs. Wha…