HMRC launches new VAT rates for petrol and diesel drivers today with thousands of drivers impacted

Felix Reeves
Fri, 01 May 2026 10:40:48 +0000

Drivers are being urged to familiarise themselves with new HMRC rates, which could impact thousands of drivers across the UK.

New rates have been introduced for VAT road fuel scale charges, with the new measures in place from today, May 1, 2026, until April 30, 2027.

The road fuel charges are used on a VAR return to account for the private consumption of fuel on a business vehicle.

HMRC updates the VAT rates once a year, although drivers and businesses can use charges to account on an annual, quarterly or monthly basis.

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Drivers can recover the VAT in full and pay the road fuel scale charge, not recover any of the VAT, or keep track of the split of business and personal mileage, allowing them to recover some VAT.

Under the new rules, any vehicle emitting less than 120g of CO2 per kilometre, will have a VAT-inclusive consideration of £661 for a 12-month period.

Emissions rates are broken up into categories at intervals of 5g/km, reaching 225g/km or more, which will stand at £2,314.

GB News has compiled the latest VAT road fuel scale charges from May 1, 2026, to April 30, 2027.

VAT inclusive consideration for a 12-month prescribed accounting period for 2026-2027

120g of CO2 per km or less - £657

125g/km - £983

130g/km - £1,051

135g/km - £1,114

140g/km - £1,182

145g/km - £1,245

150g/km - £1,314

155g/km - £1,377

160g/km - £1,445

165g/km - £1,508

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170g/km - £1,576

175g/km - £1,640

180g/km - £1,708

185g/km - £1,771

190g/km - £1,839

195g/km - £1,902

200g/km - £1,971

205g/km - £2,034

210g/km - £2,102

215g/km - £2,165

220g/km - £2,233

225g/km or more - £2,297

If a vehicle is too old to have a CO2 emissions figure, drivers can identify the CO2 band based on its engine size.

If the cylinder capacity is:

1,400cc or less, the CO2 band is 140

More than 1,400cc but less than 2,000cc, the CO2 band is 175

more than 2,000 cc, the CO2 band is 225 or more

HMRC states that drivers should work out how much of the accounting period is used for, and record it as a percentage of the accounting period.