HMRC new VAT rates explained: What petrol, diesel drivers must know now
New road fuel scale charges will remain in effect until April 30, 2027
By
Geo News Digital Desk
|
Published May 01, 2026
HMRC new VAT rates explained: What petrol, diesel drivers must know now
HMRC has launched new VAT road fuel scale charges for petrol and diesel drivers across the UK, effective from today, May 1, 2026.
The new rates will remain in place until April 30, 2027. Thousands of drivers are expected to be impacted by the changes.
Road fuel scale charges are used on a VAT return to account for the private use of fuel in a business vehicle. HMRC updates these rates once a year.
Drivers have three options under the current rules. They can:
Recover VAT in full and pay the road fuel scale charge,
Not recover any VAT at all,
Track the split between business and personal mileage to recover VAT partially.
Under the new rates, vehicles emitting less than 120g of CO2 per kilometre will carry a VAT-inclusive charge of £657 for a 12-month period. The charges increase in bands of 5g/km, reaching £2,297 for vehicles emitting 225g/km or more.
Drivers can account for the charges on an annual, quarterly or monthly basis.
For vehicles without a CO2 emissions figure due to their age, the CO2 band is determined by engine size.
Engines of 1,400cc or less fall under the 140g/km band.
Engines above 1,400cc but under 2,000cc fall under 175g/km.
Engines above 2,000cc fall under the 225g/km or more category.
Here is the full list of updated VAT road fuel scale charges:
VAT Road Fuel Scale Charges – Valuation Table (VAT inclusive – from 1 May 2026 to 30 April 2027)
Description of vehicle: vehicle’s CO₂ emissions figure
VAT inclusive consideration for a 12 month prescribed accounting period (£)
VAT inclusive consideration for a 3 month prescribed accounting period (£)
VAT inclusive consideration for a 1 month prescribed accounting period (£)
120 or less
657.00
163.00
54.00
125
983.00
246.00
81.00
130
1,051.00
261.00
86.00
135
1,114.00
278.00
92.00
140
1,182.00
294.00
98.00
145
1,245.00
311.00
103.00
150
1,314.00
328.00
109.00
155
1,377.00
344.00
114.00
160
1,445.00
361.00
119.00
165
1,508.00
377.00
125.00
170
1,576.00
393.00
130.00
175
1,640.00
409.00
136.00
180
1,708.00
426.00
142.00
185
1,771.00
442.00
146.00
190
1,839.00
459.00
152.00
195
1,902.00
475.00
158.00
200
1,971.00
492.00
163.00
205
2,034.00
509.00
169.00
210
2,102.00
524.00
174.00
215
2,165.00
541.00
180.00
220
2,233.00
557.00
185.00
225 or more
2,297.00
574.00
190.00
Annual VAT Rate Table
CO₂ band
VAT fuel scale charge, 12 month period (£)
VAT on 12 month charge (£)
VAT exclusive 12 month charge (£)
120 or less
657.00
109.50
547.50
125
983.00
163.83
819.17
130
1,051.00
175.17
875.83
135
1,114.00
185.67
928.33
140
1,182.00
197.00
985.00
145
1,245.00
207.50
1,037.50
150
1,314.00
219.00
1,095.00
155
1,377.00
229.50
1,147.50
160
1,445.00
240.83
1,204.17
165
1,508.00
251.33
1,256.67
170
1,576.00
262.67
1,313.33
175
1,640.00
273.33
1,366.67
180
1,708.00
284.67
1,423.33
185
1,771.00
295.17
1,475.83
190
1,839.00
306.50
1,532.50
195
1,902.00
317.00
1,585.00
200
1,971.00
328.50
1,642.50
205
2,034.00
339.00
1,695.00
210
2,102.00
350.33
1,751.67
215
2,165.00
360.83
1,804.17
220
2,233.00
372.17
1,860.83
225 or more
2,297.00
382.83
1,914.17
Quarterly VAT Rate Table
CO₂ band
VAT fuel scale charge, 3 month period (£)
VAT on 3 month charge (£)
VAT exclusive 3 month charge (£)
120 or less
163.00
27.17
135.83
125
246.00
41.00
205.00
225 or more
574.00
95.67
478.33
Monthly VAT Rate Table
CO₂ band
VAT fuel scale charge, 1 month period (£)
VAT on 1 month charge (£)
VAT exclusive 1 month charge (£)
120 or less
54.00
9.00
45.00
125
81.00
13.50
67.50
130
86.00
14.33
71.67
135
92.00
15.33
76.67
140
98.00
16.33
81.67
145
103.00
17.17
85.83
150
109.00
18.17
90.83
155
114.00
19.00
95.00
160
119.00
19.83
99.17
165
125.00
20.83
104.17
170
130.00
21.67
108.33
175
136.00
22.67
113.33
180
142.00
23.67
118.33
185
146.00
24.33
121.67
190
152.00
25.33
126.67
195
158.00
26.33
131.67
200
163.00
27.17
135.83
205
169.00
28.17
140.83
210
174.00
29.00
145.00
215
180.00
30.00
150.00
220
185.00
30.83
154.17
225 or more
190.00
31.67
158.33
HMRC states that drivers must calculate how much of the accounting period each rate applies to and record it as a percentage accordingly.
