HM Revenue and Customs (HMRC) has confirmed new VAT road fuel scale charges for drivers of newer petrol and diesel cars across the UK. The charges, effective from May 1, 2026, to April 30, 2027, apply to business vehicles and are based on CO2 emissions.
What Are Road Fuel Scale Charges?
Road fuel scale charges are fixed amounts approved by HMRC that are added to a VAT return to account for private fuel consumption in a business vehicle. The charges are updated annually and apply regardless of the actual private mileage driven.
Drivers must include the charge in Box 1 of their VAT return. The amount depends on the car's CO2 emissions and the length of the VAT accounting period (one, three, or 12 months).
New Charges for 2026-2027
For a 12-month period, charges range from £657 for vehicles emitting 120g/km or less of CO2 to £2,297 for those emitting 225g/km or more. For three-month periods, charges start at £163 and go up to £574. Monthly charges range from £54 to £190.
HMRC stated: "You'll need to work out the correct road fuel charge, based on your car's CO2 emissions, and the length of your VAT accounting period."
How to Determine Your Car's CO2 Emissions
For cars registered on or after March 1, 2001, the official CO2 emissions figure is recorded on the V5C registration certificate. If the figure is not a multiple of 5, round it down to the nearest multiple of 5. Alternatively, a UK approval certificate or a certificate of conformity from a manufacturer in another member state can be used.
For older cars registered before May 1, 2001, the CO2 emissions figure may not be available. In such cases, HMRC advises using engine size to determine the CO2 band: 1,400cc or less corresponds to band 140; more than 1,400cc but less than 2,000cc corresponds to band 175; more than 2,000cc corresponds to band 225 or more.
Options for Recovering VAT
Drivers have three options: recover VAT in full and pay the road fuel scale charge; not recover any VAT; or track the split between business and personal mileage to partially recover VAT. The chosen method must be applied consistently.
