Where an employer meets the cost of fuel for private journeys in a company car, an additional benefit in kind charge arises in respect of the provision of the `free’ fuel (unless the employee makes good all the cost).
A benefit-in-kind tax charge arises when a company car is also available for private use. The amount that is taxed in respect of this benefit is a percentage of the list price of the car when it was new. The percentage (known as the appropriate percentage) depends on the CO2 emissions of the car.