HMRC confirms new VAT rates for petrol and diesel | Tech News
HM Revenue and Customs (HMRC) has confirmed new VAT rates for petrol and diesel drivers throughout the UK.
The new VAT highway fuel scale fees are efficient from May 1, 2026, and will stay in place till April 30, 2027, with hundreds of drivers anticipated to be impacted by the adjustments. Road fuel scale fees are a fixed quantity accredited by HMRC which are added to a VAT return to account for the personal consumption of fuel in a business vehicle. HMRC updates these rates as soon as per yr and the fees apply to autos primarily based on CO2 emissions.
The fees are accounted for by together with them in Box 1 of your VAT return and are fixed quantities irrespective of the quantity of personal mileage you clock up.
Drivers have the option of recovering the VAT in full and paying the highway fuel scale charge, not recovering any VAT in any respect, or monitoring the cut up between business and personal mileage to partially recuperate some VAT.
The rates increase in bands of 5g per kilometre of CO2 emissions, with VAT-inclusive fees 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.
HMRC stated: “The VAT Road fuel scale charges are amended with effect from 1 May 2026. 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 right highway fuel charge, primarily based in your car’s CO2 emissions, and the size of your VAT accounting period. This will probably be both one, 3, or 12 months.”
Listed are the new VAT highway fuel scale fees from May 1, 2026, to April 30, 2027, for a 12 month, three month and one month accounting period, as confirmed by HMRC:
For older vehicles with out a CO2 emissions determine, the CO2 band is as an alternative decided by the dimensions of the engine.
HMRC explains: “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:
- 1,400 or less, use CO2 band 140
- 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.”
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