HMRC new VAT rates explained: What petrol, diesel drivers need to know now
HMRC has launched new road fuel scale charges for petrol and diesel drivers across the UK, with effect from today, 1 May 2026.
The new rates will remain in place until 30 April 2027. Thousands of drivers are expected to be affected by the changes.
Charges on the road fuel scale are used on a VAT return to account for 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:
Get full VAT back and pay the road fuel tax,
No VAT refunded at all,
Track the split between business and personal mileage to get a partial VAT refund.
According to the new rates, vehicles that emit less than 120 g of CO2 per kilometres, carry a charge including VAT of £657 over a 12-month period. Charges increase in 5g/km bands and reach £2,297 for vehicles emitting 225g/km or more.
Drivers can account for fees 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 over 1,400 cc but under 2,000 cc fall below 175 g/km.
Engines over 2,000 cc fall under the 225 g/km or more category.
Here is the full list of updated VAT charges on the road fuel scale:
VAT Road fuel scale charges – valuation table (including VAT – from 1 May 2026 to 30 April 2027)
Description of the vehicle: CO₂ emission figure of the vehicle
VAT including remuneration for a 12-month fixed accounting period (£)
VAT including remuneration for a 3-month fixed accounting period (£)
VAT including remuneration for a fixed 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
Annual VAT rate table
CO₂ band
VAT fuel scale charge, 12 month period (£)
VAT on 12 months collection (£)
VAT excluding 12 month fee (£)
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 months collection (£)
VAT excluding 3 month fee (£)
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’s collection (£)
VAT excluding 1 month fee (£)
120 or less
54.00
9:00 a.m
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.
