HM Revenue and Customs (HMRC) has confirmed new VAT road fuel scale charges for UK drivers of older petrol and diesel cars, following a 2026 update. The rates will remain in force until April 30, 2027, impacting thousands of business drivers who use vehicles for private mileage.
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 the private consumption of fuel in a business vehicle. These charges are updated annually on May 1. The amounts are based on CO2 emissions and are fixed regardless of the actual private mileage driven. Drivers must include the charge in Box 1 of their VAT return.
HMRC stated that drivers need to determine the correct charge based on their car's CO2 emissions and the length of their VAT accounting period, which can be one, three, or 12 months. The rates increase in bands of 5g per kilometre of CO2 emissions, with VAT-inclusive charges ranging from £657 for vehicles emitting 120g/km or less to £2,297 for those emitting 225g/km or more for a 12-month period.
Older Cars Without CO2 Figures
For drivers of older petrol and diesel cars that lack a CO2 emissions figure, HMRC advises using the engine size to determine the appropriate CO2 band. This generally applies to cars registered before 2001. According to ETA Insurance, “Motorists who drive cars that were first registered before 2001 are unlikely to be aware of how much CO2 their vehicle emits. A car’s V5 document details the amount of CO2 the vehicle emits per kilometre, but this is not the case for vehicles registered before 1st March 2001.”
HMRC explained: “If your car is too old to have a CO2 emissions figure, you should identify the CO2 band based on its engine size. If its cylinder capacity is: 1,400cc or less, use CO2 band 140; more than 1,400cc but less than 2,000cc, use CO2 band 175; more than 2,000cc, use CO2 band 225 or more.” Drivers must calculate the percentage of the accounting period each car was used and apply that percentage to the road fuel scale charge to get a total figure.
Options for VAT Recovery
Drivers have three options: recover the VAT in full and pay the road fuel scale charge, recover no VAT at all, or track the split between business and personal mileage to partially recover some VAT.
New VAT Road Fuel Scale Charges (May 1, 2026 – April 30, 2027)
The following are the confirmed rates for 12-month, 3-month, and 1-month accounting periods:
CO2 Emissions 120g/km or less: 12 months: £657.00; 3 months: £163.00; 1 month: £54.00
125g/km: 12 months: £983.00; 3 months: £246.00; 1 month: £81.00
130g/km: 12 months: £1,051.00; 3 months: £261.00; 1 month: £86.00
135g/km: 12 months: £1,114.00; 3 months: £278.00; 1 month: £92.00
140g/km: 12 months: £1,182.00; 3 months: £294.00; 1 month: £98.00
145g/km: 12 months: £1,245.00; 3 months: £311.00; 1 month: £103.00
150g/km: 12 months: £1,314.00; 3 months: £328.00; 1 month: £109.00
155g/km: 12 months: £1,377.00; 3 months: £344.00; 1 month: £114.00
160g/km: 12 months: £1,445.00; 3 months: £361.00; 1 month: £119.00
165g/km: 12 months: £1,508.00; 3 months: £377.00; 1 month: £125.00
170g/km: 12 months: £1,576.00; 3 months: £393.00; 1 month: £130.00
175g/km: 12 months: £1,640.00; 3 months: £409.00; 1 month: £136.00
180g/km: 12 months: £1,708.00; 3 months: £426.00; 1 month: £142.00
185g/km: 12 months: £1,771.00; 3 months: £442.00; 1 month: £146.00
190g/km: 12 months: £1,839.00; 3 months: £459.00; 1 month: £152.00
195g/km: 12 months: £1,902.00; 3 months: £475.00; 1 month: £158.00
200g/km: 12 months: £1,971.00; 3 months: £492.00; 1 month: £163.00
205g/km: 12 months: £2,034.00; 3 months: £509.00; 1 month: £169.00
210g/km: 12 months: £2,102.00; 3 months: £524.00; 1 month: £174.00
215g/km: 12 months: £2,165.00; 3 months: £541.00; 1 month: £180.00
220g/km: 12 months: £2,233.00; 3 months: £557.00; 1 month: £185.00
CO2 Emissions 225g/km or more: 12 months: £2,297.00; 3 months: £574.00; 1 month: £190.00
Drivers are advised to check their vehicle's CO2 emissions or engine size and apply the correct charge to their VAT accounting period.
