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.
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.
HMRC has released new VAT fuel rates for drivers today
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GETTY/PA
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
The new VAT fuel rates will be in place until April 30, 2027
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PA170g/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.