HMRC’s new VAT rates explained: What petrol and diesel drivers need to know now
HMRC has launched new VAT road fuel scale charges for petrol and diesel drivers across the UK, starting today, 1 May 2026.
The new rates will remain in effect until April 30, 2027. The changes are expected to affect thousands of drivers.
Road fuel scale charges are used in a VAT return to account for the private use of fuel in a commercial vehicle. HMRC updates these rates once a year.
Drivers have three options under the current rules. They can:
Recover the VAT in full and pay the roadside fuel scale charge,
Not recover any VAT at all,
Track the split between business and personal mileage to partially recover VAT.
Under the new rates, vehicles emitting less than 120g of CO2 per kilometer will be charged a VAT-inclusive charge of £657 over a 12-month period. Rates increase in bands of 5g/km, reaching £2,297 for vehicles emitting 225g/km or more.
Drivers can post charges annually, quarterly, or monthly.
For vehicles without a CO2 emissions figure due to their age, the CO2 band is determined by the engine size.
Engines of 1,400 cc or less are within the 140 g/km band.
Engines larger than 1,400 cc but less than 2,000 cc fall below 175 g/km.
Engines larger than 2,000 cc fall into the 225 g/km or more category.
Here is the full list of updated road fuel scale charges with VAT:
Road Fuel Scale Charges with VAT – Valuation Table (VAT included – from May 1, 2026 to April 30, 2027)
Vehicle description: vehicle CO₂ emissions figure
Consideration including VAT for a prescribed accounting period of 12 months (£)
Consideration including VAT for a prescribed accounting period of 3 months (£)
Consideration including VAT for a prescribed accounting period of 1 month (£)
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
Table of Annual VAT Rates
CO₂ band
Fuel scale charge with VAT, 12 month period (£)
VAT on 12 month charge (£)
12 month charge excluding VAT (£)
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
Fuel scale charge with VAT, 3 month period (£)
VAT on 3 month charge (£)
3 month charge excluding VAT (£)
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
Table of monthly VAT rates
CO₂ band
Fuel scale charge with VAT, 1 month period (£)
VAT charge for 1 month (£)
1 month charge excluding VAT (£)
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 which part of the accounting period each fee applies to and record it as a percentage accordingly.
