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HM Revenue and Customs (HMRC) has confirmed new VAT rates for petrol and diesel drivers across the UK.

The new VAT road fuel scale charges are effective from May 1, 2026, and will remain in place until April 30, 2027, with thousands of drivers expected to be impacted by the changes. Road fuel scale charges are a fixed amount approved by HMRC that are added to a VAT return to account for the private consumption of fuel in a business vehicle. HMRC updates these rates once per year and the charges apply to vehicles based on CO2 emissions.

The charges are accounted for by including them in Box 1 of your VAT return and are fixed amounts irrespective of the amount of private mileage you clock up.

Drivers have the option of recovering the VAT in full and paying the road fuel scale charge, not recovering any VAT at all, or tracking the split between business and personal mileage to partially recover some VAT.

The rates increase in bands of 5g per kilometre of CO2 emissions, with VAT-inclusive charges ranging from £657 for vehicles emitting 120g or less of CO2 per km, to £2,297 for vehicles emitting 225g/km for a 12-month period. Drivers can account for the charges on an annual, quarterly or monthly basis.

HMRC said: "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 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."

Listed are the new VAT road fuel scale charges from May 1, 2026, to April 30, 2027, for a 12 month, three month and one month accounting period, as confirmed by HMRC:

CO Emissions: 120g/km or less

• 12 Month Period: £657.00
• 3 Month Period: £163.00
• 1 Month Period: £54.00

CO Emissions: 125g/km - 150g/km

• 125g/km: £983.00 (12 months) | £246.00 (3 months) | £81.00 (1 month)
• 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)

CO Emissions: 155g/km - 180g/km

• 155g/km: £1,377.00 (12 months) | £344.00 (3 months) | £114.00 (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)

CO Emissions: 185g/km - 220g/km

• 185g/km: £1,771.00 (12 months) | £442.00 (3 months) | £146.00 (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)

CO Emissions: 225g/km or more

• 12 Month Period: £2,297.00
• 3 Month Period: £574.00
• 1 Month Period: £190.00

For older cars without a CO2 emissions figure, the CO2 band is instead determined by the size 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."