HMRC confirms new VAT rates for drivers of new | Tech News
The new VAT street fuel scale expenses will probably be in place till April 30, 2027 (Image: Getty)
HM Revenue and Customs (HMRC) has confirmed new VAT rates for drivers of newer petrol and diesel vehicles throughout the UK.
The authorities division launched new VAT street fuel scale expenses at first of final month, with the rates to stay in drive from May 1, 2026, till April 30, 2027, impacting 1000’s of drivers. Road fuel scale expenses are a fixed quantity authorised by HMRC which can be added to a VAT return to account for the personal consumption of fuel in a business vehicle. The expenses, that are up to date by HMRC as soon as yearly, apply to autos primarily based on CO2 emissions and are fixed quantities irrespective of the quantity of personal mileage you clock up.
These street fuel expenses are accounted for by together with them in Box 1 of your VAT return and drivers need to work out the right amount 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 expenses 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.
Newer vehicles registered on or after March 1, 2001, have an official CO2 emissions determine recorded on the V5C registration certificates, and this can be utilized to determine the VAT street fuel scale expenses.
HMRC stated: “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. This will be either one, 3, or 12 months.
“You’ll need to check your car’s CO2 emissions figure online if you cannot get this from your logbook. If the figure is not a multiple of 5, round it down to the nearest multiple of 5.
“The CO2 emissions figure may also be specified, on either a:
corresponding certificate of conformity, issued by a manufacturer in another member state
“You can use one of these certificates to work out the car’s CO2 emissions figure, for the purposes of the valuation table.”
Drivers with older vehicles registered earlier than May 1, 2001, will as a substitute need to determine the CO2 band primarily based on their car’s engine dimension to work out the charge.
HMRC explains: “For cars first registered before 1 March 2001 the approved CO2 emissions figure is not shown on the car registration certificate (V5C).
“It will not always be included in the owner’s handbook for the car and, even if it is, the figure may not relate to that particular car and so may not be sufficiently accurate. This means that the owner or lessor of the car may not have details of the CO2 emissions figure.”
Explaining how to work out the CO2 emissions determine for older vehicles, HMRC stated: “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 have the option of recovering the VAT in full and paying the street fuel scale charge, not recovering any VAT in any respect, or monitoring the break up between business and personal mileage to partially recuperate some VAT.
Listed are the new VAT street fuel scale expenses which apply 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
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