The company vehicle is an advantage in kind (AEN) that is very popular in many companies. This advantage makes it possible, in fact, to enrich the employer brand to attract talent, but also to retain them over the long term.
But a crucial question arises regularly for employers as well as for employees: Do you have to pay for the fuel for private trips?
Between fiscal advantages, energy costs for the company, and the impact on vehicle use, the subject deserves an in-depth analysis.
The special status of the company vehicle
A company vehicle is made available to an employee for professional and personal purposes. Unlike the service vehicle, it can thus be used outside of working hours, including weekends and during holidays.
As such, the company vehicle is considered to be an additional remuneration. As such, it is subject to the Benefits in Kind (AEN) regime, whose tax rates were revised up in February 2025.
Fuel and company vehicles: the 2025 rules
The assumption of fuel by the employer is optional, but if it is planned, it impacts the calculation of the Benefit in kind.
Since the latest fiscal developments, Urssaf has applied a flat rate grid to calculate this advantage depending on the engine (thermal/hybrid or electric), the mode of acquisition (purchase, LLD) and the assumption (or not) of fuel.
Given the subject of this article, here we will focus only on thermal and hybrid vehicles (with electric vehicles being relatively spared until the end of 2027).
Two cases can then be distinguished:
- The company only covers fuel for business trips.
In this case, the main difficulty for fleet managers is to distinguish business kilometers from private kilometers. The use of a vehicle fleet management solution, such as OPTIMUM, makes it possible to automate this distinction and facilitate controls and adjustments. This also makes it possible to demonstrate to the tax authorities that employees actually pay for their fuel for their private trips.
Not taking charge of fuel therefore makes it possible to reduce not only the amount of AEN (for the company and the employee), but also to significantly reduce the overall cost of the fleet thanks to the reduction of the energy bill.
To benefit from a budget simulation on this first option, click HERE.
- The company also takes care of the fuel for private trips.
The increase in tax rates on Benefits in Kind is more significant here. This increase represents, on the one hand, an increase in company tax burdens and on the other hand, a loss of purchasing power for employees.
In both cases, it should be noted that a declaration of benefits in kind in real life makes it possible to significantly reduce tax rates.
The OPTIMUM car fleet management solution not only makes it possible to distinguish private/professional kilometers, but also to carry out budget simulations in order to opt for the most favorable tax regime. To find out more about reporting AENs in real life, click HERE.
Fuel: a new negotiation lever?
The allocation of a company vehicle is a real weapon of seduction to attract and retain company talent. This is even more true when fuel expenses are 100% covered by the employer.
However, as we have seen, fuel coverage considerably increases the tax rate on Benefits in Kind with, as a first consequence, a decrease in the Net salary of employees.
On the business side, it is a double penalty: an increase in tax rates on NEAs, but also, the impact of the energy bill on the total cost of the car fleet.
Therefore, fuel can become a negotiating tool between the employee and the company: by opting for “not taking charge of fuel”, both parties benefit from a more advantageous tax regime.
In return, the employer can (to compensate for the non-financing of fuel for private trips) upgrade its Car Policy by offering higher-category vehicles that are more comfortable and better equipped.
Conclusion
Do you have to pay for fuel for company vehicles?
There is no one-size-fits-all answer. Several factors must be taken into consideration: company HR policy, vehicle use culture, CSR or cost control objectives.
Taking charge of fuel can be a strong social added value, but it must be integrated into a global, coherent and controlled fleet policy. More and more companies are adopting mixed strategies: partial, capped, or conditional support for professional use, accompanied by automated tracking solutions.
The key lies in transparency and personalization: each company can calibrate its offer according to its budget, the profiles of its employees and its internal challenges. Fuel is no longer just a cost; it is becoming a lever for management, fiscal optimization, and sometimes even motivation.
