The new charges for 2026 and 2027 have been confirmed.
The Toyota Yaris Hybrid emits less than 120g/km of CO2 (Image: Getty)
HM Revenue and Customs has confirmed new road fuel scale charges for the private consumption of fuel on a business vehicle. Road fuel scale charges are fixed amounts added to a VAT return account for VAT on fuel bought by a business but used for private, non-business journeys. They allow businesses to reclaim all VAT on fuel without keeping detailed private mileage records, with charges based on CO2 emissions.
The HMRC rule that started in May entails that any vehicle emitting less than 120g of CO2 per kilometre will have a VAT-inclusive consideration of £661 for a 12-month period. Millions of cars emit less than 120g of CO2 per kilometre, such as small petrol and diesel cars, mild hybrids and older plug-in hybrids. Rates are split into categories at intervals of 5g/km, reaching 225g/km or more, which will stand at £2,314. This rule is expected to last until April 30, 2027.
HM Revenues and Customs has confirmed new road fuel scale charges for the private consumption of fue (Image: Getty)
Road fuel scale charges 2026/27:
- 120g of CO2 per km or less – £657
- 125g/km – £983
- 130g/km – £1,051
- 135g/km – £1,114
- 140g/km – £1,182
- 145g/km – £1,245
- 150g/km – £1,314
- 155g/km – £1,377
- 160g/km – £1,445
- 165g/km – £1,508
- 170g/km – £1,576
- 175g/km – £1,640
- 180g/km – £1,708
- 185g/km – £1,771
- 190g/km – £1,839
- 195g/km – £1,902
- 200g/km – £1,971
- 205g/km – £2,034
- 210g/km – £2,102
- 215g/km – £2,165
- 220g/km – £2,233
- 225g/km or more – £2,297
HMRC confirms £2,297 charges for certain drivers coming before April 2027 (Image: Getty)
VAT FAQs advised:HMRC has launched new VAT road fuel scale charges for petrol and diesel drivers in the UK, effective from 1 May 2026 and lasting until 30 April 2027. The charges vary by CO₂ emissions band, ranging from £657 for low‑emission vehicles to £2,297 for high‑emission ones over a 12‑month period. Drivers can account for the charges annually, quarterly or monthly and must calculate the applicable rate for each period.”
Giving its key takeaways, it added: “£657 for a 12‑month period, £163 for a 3‑month period, and £54 for a 1‑month period, effective from 1 May 2026.
“They remain in effect until 30 April 2027. The CO₂ band is assigned based on engine size: ≤1400cc falls under the 140g/km band, 1401‑2000cc under 175g/km, and >2000cc under the 225g/km or more…
“£2,297 for a 12‑month period, £574 for a 3‑month period, and £190 for a 1‑month period, effective from 1 May 2026.”
