HM Revenue and Customs (HMRC) has confirmed VAT road fuel scale charges for UK drivers with older petrol and diesel cars. The rates, introduced in May, remain in force for nine months until April 30, 2027, affecting thousands of drivers.
Road fuel scale charges are fixed amounts approved by HMRC, added to a VAT return to account for private fuel use in a business vehicle. Updated annually, they apply based on CO2 emissions and are fixed regardless of private mileage. Drivers include the charge in Box 1 of their VAT return.
How charges are calculated
Drivers must determine the correct charge based on their car's CO2 emissions and VAT accounting period, which is either one, three, or 12 months. Rates increase in bands of 5g per kilometre of CO2, with VAT-inclusive charges ranging from £657 for vehicles emitting 120g or less per km to £2,297 for those emitting 225g/km or more over 12 months.
For older petrol and diesel cars without a CO2 emissions figure, drivers must identify the CO2 band based on engine size. According to ETA Insurance, this generally applies to cars registered before 2001.
Guidance for pre-2001 vehicles
ETA Insurance stated: "Motorists who drive cars that were first registered before 2001 are unlikely to be aware of how much CO2 their vehicle emits." The firm added: "A car's V5 document (sometimes referred to as the logbook) 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: 1,400 or less, use CO2 band 140; more than 1,400cc but less than 2,000cc, use CO2 band 175; more than 2,000 cc, use CO2 band 225 or more."
Full list of VAT rates
Drivers can recover VAT in full and pay the road fuel scale charge, recover no VAT, or track business and personal mileage to partially recover VAT. The confirmed charges from May 1, 2026, to April 30, 2027, are as follows:
- 120g/km or less: £657 (12 months), £163 (3 months), £54 (1 month)
- 125g/km: £983 (12 months), £246 (3 months), £81 (1 month)
- 130g/km: £1,051 (12 months), £261 (3 months), £86 (1 month)
- 135g/km: £1,114 (12 months), £278 (3 months), £92 (1 month)
- 140g/km: £1,182 (12 months), £294 (3 months), £98 (1 month)
- 145g/km: £1,245 (12 months), £311 (3 months), £103 (1 month)
- 150g/km: £1,314 (12 months), £328 (3 months), £109 (1 month)
- 155g/km: £1,377 (12 months), £344 (3 months), £114 (1 month)
- 160g/km: £1,445 (12 months), £361 (3 months), £119 (1 month)
- 165g/km: £1,508 (12 months), £377 (3 months), £125 (1 month)
- 170g/km: £1,576 (12 months), £393 (3 months), £130 (1 month)
- 175g/km: £1,640 (12 months), £409 (3 months), £136 (1 month)
- 180g/km: £1,708 (12 months), £426 (3 months), £142 (1 month)
- 185g/km: £1,771 (12 months), £442 (3 months), £146 (1 month)
- 190g/km: £1,839 (12 months), £459 (3 months), £152 (1 month)
- 195g/km: £1,902 (12 months), £475 (3 months), £158 (1 month)
- 200g/km: £1,971 (12 months), £492 (3 months), £163 (1 month)
- 205g/km: £2,034 (12 months), £509 (3 months), £169 (1 month)
- 210g/km: £2,102 (12 months), £524 (3 months), £174 (1 month)
- 215g/km: £2,165 (12 months), £541 (3 months), £180 (1 month)
- 220g/km: £2,233 (12 months), £557 (3 months), £185 (1 month)
- 225g/km or more: £2,297 (12 months), £574 (3 months), £190 (1 month)
Drivers should apply the percentage of the accounting period they used each car to the road fuel scale charge to calculate the total figure.
