Full list of new HMRC charges after rule | Tech News

HM Revenue and Customs has launched new VAT street fuel scale charges for business automobiles after the newest annual replace got here into drive in May. The charges apply to VAT-registered companies that present fuel for company vehicles, that are additionally used for personal journeys.

HMRC updates the street fuel scale charges yearly, and the new charges apply to any VAT accounting period beginning on or after May 1, 2026. The system is designed to cowl personal mileage with out requiring companies to log each single personal journey. Instead of retaining detailed information, corporations can apply a flat-rate charge based mostly on the vehicle’s CO2 emissions.

The larger the emissions, the upper the charge.

HMRC stated: “Businesses must use the new scales from the start of the next prescribed accounting period beginning on or after 1 May 2026.

“You’ll need to work out the correct road fuel charge, based on your car’s CO2 emissions, and the length of your VAT accounting period.”

The charges fluctuate relying on whether or not a business information VAT returns month-to-month, quarterly or yearly.

Hugh Acland, Chief Commercial Officer at Capital on Tap, warned that some corporations could also be paying more than they need to.

He stated: “There are a few different ways to treat VAT on fuel, but many businesses default to reclaiming it in full and applying the scale charge without checking if it’s actually the most cost-effective option.

“The reality is that the scale charge is a flat rate based on emissions, not actual usage, so if private mileage is low, it can mean paying more VAT than necessary.”

Businesses must also notice that if a car’s CO2 determine is just not a a number of of 5, it should be rounded down to the closest band.

For instance, a car emitting 142g/km would fall into the 140 band.

If a vehicle is just too outdated to have an official CO2 ranking, engine dimension should be used as a substitute. Cars up to 1,400cc use the 140 band.

Vehicles between 1,401cc and a couple of,000cc use the 175 band. Cars over 2,000cc use the 225 band.

For bi-fuel automobiles with two completely different CO2 rankings, companies can use the decrease determine.

Below is the total list of VAT street fuel scale charges for May 1, 2026, to April 30, 2027 (VAT-inclusive).

• 120g/km or much less – £54 (month-to-month), £163 (quarterly), £657 (yearly)
• 125g/km – £81 (month-to-month), £246 (quarterly), £983 (yearly)
• 130g/km – £86 (month-to-month), £261 (quarterly), £1,051 (yearly)
• 135g/km – £92 (month-to-month), £278 (quarterly), £1,114 (yearly)
• 140g/km – £98 (month-to-month), £294 (quarterly), £1,182 (yearly)
• 145g/km – £103 (month-to-month), £311 (quarterly), £1,245 (yearly)
• 150g/km – £109 (month-to-month), £328 (quarterly), £1,314 (yearly)
• 155g/km – £114 (month-to-month), £344 (quarterly), £1,377 (yearly)
• 160g/km – £119 (month-to-month), £361 (quarterly), £1,445 (yearly)
• 165g/km – £125 (month-to-month), £377 (quarterly), £1,508 (yearly)
• 170g/km – £130 (month-to-month), £392 (quarterly), £1,570 (yearly)
• 175g/km – £136 (month-to-month), £409 (quarterly), £1,638 (yearly)
• 180g/km – £141 (month-to-month), £425 (quarterly), £1,701 (yearly)
• 185g/km – £147 (month-to-month), £442 (quarterly), £1,770 (yearly)
• 190g/km – £152 (month-to-month), £457 (quarterly), £1,832 (yearly)
• 195g/km – £158 (month-to-month), £474 (quarterly), £1,900 (yearly)
• 200g/km – £164 (month-to-month), £491 (quarterly), £1,964 (yearly)
• 205g/km – £169 (month-to-month), £507 (quarterly), £2,031 (yearly)
• 210g/km – £174 (month-to-month), £524 (quarterly), £2,095 (yearly)
• 215g/km – £180 (month-to-month), £541 (quarterly), £2,163 (yearly)
• 220g/km – £185 (month-to-month), £556 (quarterly), £2,226 (yearly)
• 225g/km or more – £191 (month-to-month), £574 (quarterly), £2,297 (yearly)

These charges will stay in place till April 30, 2027, when HMRC is predicted to publish up to date figures for the next tax yr.

More data could be discovered right here.