HMRC confirms new VAT rates for older petrol and | Tech News
HM Revenue and Customs (HMRC) has confirmed new VAT rates for UK drivers of older petrol and diesel automobiles following a 2026 replace.
The tax workplace has launched new VAT highway fuel scale costs which can stay in power till April 30 subsequent 12 months, impacting 1000’s of drivers. Road fuel scale costs are a fixed quantity authorized by HMRC that’s added to a VAT return to account for the personal consumption of fuel in a business vehicle. HMRC updates these rates as soon as a 12 months, with the new rates being confirmed on May 1. The costs, that are accounted for by together with them in Box 1 of your VAT return, apply to autos based mostly on CO2 emissions and are fixed quantities irrespective of the quantity of personal mileage you clock up.
HMRC mentioned drivers will need to work out the proper highway fuel charge based mostly on their car’s CO2 emissions and the size of their VAT accounting period, which can 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 costs on an annual, quarterly or month-to-month foundation.
But for drivers of older petrol and diesel automobiles that don’t have a CO2 emissions determine, you’ll need to determine the CO2 band based mostly in your car’s engine dimension as a substitute to work out the charge.
According to ETA Insurance, this can usually apply to drivers with automobiles 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 automobiles, 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:
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)
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)
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)
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