HMRC confirms new VAT rates for drivers with older | Tech News
The new VAT highway fuel scale costs will probably be in place till April 30, 2027 (Image: Getty)
HM Revenue and Customs (HMRC) has confirmed new VAT rates for petrol and diesel drivers with older vehicles throughout the UK.
The new VAT highway fuel scale costs got here into impact on May 1, 2026, and can stay in place till April 30, 2027, with the adjustments anticipated to influence hundreds of drivers. Road fuel scale costs are a fixed quantity permitted by HMRC that’s added to a VAT return to account for the non-public consumption of fuel in a business vehicle. These costs apply to autos primarily based on CO2 emissions, and HMRC updates the rates as soon as a 12 months.
The costs are accounted for by together with them in Box 1 of your VAT return and are fixed quantities irrespective of the quantity of non-public mileage you clock up.
Read More: Drivers urged to put tea luggage in vehicles earlier than Sunday
Read More: HMRC confirms surprising £108.20 funds for households earlier than June
HMRC mentioned drivers will need to work out the proper highway fuel charge primarily based on their car’s CO2 emissions, and the size of their VAT accounting period, which will probably be both one, three or 12 months.
The rates increase in bands of 5g per kilometre of CO2 emissions, with VAT-inclusive costs starting from £657 for autos emitting 120g or much less of CO2 per km, to £2,297 for autos emitting 225g/km for a 12-month period. Drivers can account for the fees on an annual, quarterly or month-to-month foundation.
But for drivers of older vehicles that don’t have a CO2 emissions determine, you’ll need to determine the CO2 band primarily based in your car’s engine measurement as an alternative to work out the charge.
According to ETA Insurance, it will typically apply to drivers with vehicles registered earlier than 2001. The insurance coverage firm mentioned: “Motorists who drive cars that were first registered before 2001 are unlikely to be aware of how much CO2 their vehicle emits.
“A car’s V5 document (sometimes referred to as the logbook) details the amount of CO2 the vehicle emits per kilometre, but this is not the case for vehicles registered before 1st March 2001.”
Explaining how to work out the CO2 emissions determine for older vehicles, HMRC mentioned: “If your car is too old to have a CO2 emissions figure, you should identify the CO2 band based on its engine size. If its cylinder capacity is:
more than 1,400cc but less than 2,000cc, use CO2 band 175
more than 2,000 cc, use CO2 band 225 or more
“To do this, work out how much of the accounting period you used each car for, and record this as a percentage of the accounting period. Apply this percentage to each road fuel scale charge to get a total figure.”
Drivers can get better the VAT in full and pay the highway fuel scale charge, get better no VAT in any respect, or monitor the break up between business and personal mileage to partially get better some VAT.
Listed are the new VAT highway fuel scale costs from May 1, 2026, to April 30, 2027, for a 12 month, three month and one month accounting period, as confirmed by HMRC:
CO₂ Emissions: 120g/km or much less
CO₂ Emissions: 125g/km – 150g/km
130g/km: £1,051.00 (12 months) | £261.00 (3 months) | £86.00 (1 month)
135g/km: £1,114.00 (12 months) | £278.00 (3 months) | £92.00 (1 month)
140g/km: £1,182.00 (12 months) | £294.00 (3 months) | £98.00 (1 month)
145g/km: £1,245.00 (12 months) | £311.00 (3 months) | £103.00 (1 month)
150g/km: £1,314.00 (12 months) | £328.00 (3 months) | £109.00 (1 month)
CO₂ Emissions: 155g/km – 180g/km
160g/km: £1,445.00 (12 months) | £361.00 (3 months) | £119.00 (1 month)
165g/km: £1,508.00 (12 months) | £377.00 (3 months) | £125.00 (1 month)
170g/km: £1,576.00 (12 months) | £393.00 (3 months) | £130.00 (1 month)
175g/km: £1,640.00 (12 months) | £409.00 (3 months) | £136.00 (1 month)
180g/km: £1,708.00 (12 months) | £426.00 (3 months) | £142.00 (1 month)
CO₂ Emissions: 185g/km – 220g/km
190g/km: £1,839.00 (12 months) | £459.00 (3 months) | £152.00 (1 month)
195g/km: £1,902.00 (12 months) | £475.00 (3 months) | £158.00 (1 month)
200g/km: £1,971.00 (12 months) | £492.00 (3 months | £163.00 (1 month)
205g/km: £2,034.00 (12 months) | £509.00 (3 months) | £169.00 (1 month)
210g/km: £2,102.00 (12 months) | £524.00 (3 months) | £174.00 (1 month)
215g/km: £2,165.00 (12 months) | £541.00 (3 months) | £180.00 (1 month)
220g/km: £2,233.00 (12 months) | £557.00 (3 months) | £185.00 (1 month)
CO₂ Emissions: 225g/km or more
Stay forward of the curve with the newest developments within the automotive world! Our web site is your final vacation spot for car information, delivering complete updates, in-depth market evaluation, and professional insights into the fast-evolving automotive industry. We deliver you each day protection on every thing from breakthrough vehicle applied sciences and industry trends to main bulletins which might be driving the long run of transportation.
Discover how these trends are remodeling the highway forward! Visit us often for participating and informative content material by clicking right here. Our meticulously curated articles cowl market trends, investment methods, and key milestones in right this moment’s quickly evolving car panorama.
