|Fuel benefit charge multiplier||£27,800||£25,300|
The fuel benefit charge is calculated by multiplying the fuel benefit charge multiplier by the car’s appropriate percentage; that is the CO₂ emissions derived percentage used to calculate the car benefit charge, including any diesel supplement.
The fuel benefit charge is reduced to nil if the employee is required to make good the full cost of all private fuel, and does so; employer provided private fuel may either be reimbursed at cost or by using HMRC’s Advisory Fuel Rates.
A proportionate reduction is made if the company car is only available for part of the year, where private fuel ceases to be provided part-way through a year, or where the benefit of the car is shared.
No fuel benefit charge can arise if an employer provides a facility to supply or directly supplies electricity for a car as HMRC does not regard electricity to be a fuel.
Under the legislation governing Optional Remuneration Arrangements, for agreements made from 6 April 2017, if a cash allowance is offered but the fuel benefit is selected, if the CO₂ emissions of the company car exceed 75 g/km, the fuel benefit charge will be the greater of the annual cash allowance and the cash equivalent of the fuel benefit.
Similar rules apply for salary sacrifice.