His Majesty’s Revenue and Customs (HMRC) has introduced new VAT road fuel scale charges for petrol and diesel drivers across the UK. These changes are effective from May 1, 2026.
The updated charges will remain in force until April 30, 2027, according to HMRC. Road fuel scale charges are used on VAT returns to account for private fuel use in a business vehicle. HMRC updates the rates annually.
Under the new rates, vehicles emitting 120g of CO2 per kilometre or less carry a VAT-inclusive charge of £657 for a 12-month accounting period.
The charge rises in 5g/km CO2 bands, reaching £2,297 for vehicles emitting 225g/km or more. Drivers can account for the charges annually, quarterly or monthly, depending on their VAT accounting period.
HMRC rules allow drivers to recover VAT in full and pay the road fuel scale charge. Alternatively, they can recover no VAT, or track business and private mileage to recover VAT partially.
For vehicles without a CO2 emissions figure, HMRC said the band is determined by engine size. Vehicles of 1,400cc or less fall under the 140g/km band, while engines above 1,400cc and below 2,000cc fall under 175g/km.
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Vehicles with engines above 2,000cc are placed in the 225g/km or higher category. HMRC said drivers must calculate how much of the accounting period each rate applies to. They must also record it as a percentage.
