HM Revenue and Customs (HMRC) has introduced new VAT road fuel scale charges effective from May 1, 2026, impacting thousands of petrol and diesel drivers across the UK. The updated rates will remain in force until April 30, 2027.
Road fuel scale charges are fixed amounts approved by HMRC that businesses must add to their VAT returns to account for the private use of fuel in a company vehicle. The charges are updated annually and are based on the vehicle's CO2 emissions.
How the Charges Work
Drivers must include the appropriate charge in Box 1 of their VAT return. The amount is fixed regardless of the actual private mileage driven. HMRC requires drivers 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. For a 12-month period, the VAT-inclusive charges range from £657 for vehicles emitting 120g or less of CO2 per km, to £2,297 for vehicles emitting 225g/km or more.
Full List of New VAT Road Fuel Scale Charges (May 1, 2026 – April 30, 2027)
HMRC confirmed the following rates for petrol and diesel cars, split by accounting period:
CO2 Emissions: 120g/km or less
- 12 months: £657.00
- 3 months: £163.00
- 1 month: £54.00
CO2 Emissions: 125g/km – 150g/km
- 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
CO2 Emissions: 155g/km – 180g/km
- 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
CO2 Emissions: 185g/km – 220g/km
- 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
Older Cars Without CO2 Figures
For older vehicles that lack a CO2 emissions figure, HMRC advises using engine size to determine the appropriate band. According to HMRC: "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."
Options for VAT Recovery
Drivers have three options regarding VAT: recover the VAT in full and pay the road fuel scale charge; not recover any VAT at all; or track the split between business and personal mileage to partially recover some VAT.
