New VAT Rates for UK Petrol and Diesel Drivers Effective May 1, 2026
HMRC confirms new VAT rates for petrol and diesel drivers - started May 1
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HM Revenue and Customs has announced new VAT rates for petrol and diesel drivers in the UK, effective from May 1, 2026. The rates vary based on CO2 emissions, impacting thousands of drivers until April 30, 2027.
- 01The new VAT road fuel scale charges will apply from May 1, 2026, to April 30, 2027.
- 02Rates are determined by CO2 emissions, ranging from £657 for vehicles emitting 120g/km to £2,297 for those emitting 225g/km.
- 03Drivers can recover VAT fully, not at all, or partially based on business and personal mileage tracking.
- 04HMRC updates these charges annually, and businesses must use the new scales from their next accounting period after May 1, 2026.
- 05Older cars without CO2 figures will have rates determined by engine size.
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HM Revenue and Customs (HMRC) has confirmed updated VAT rates for petrol and diesel drivers in the UK, effective from May 1, 2026, and lasting until April 30, 2027. These road fuel scale charges, which are fixed amounts added to VAT returns, will affect thousands of drivers across the country. Rates are determined based on the CO2 emissions of vehicles, with charges ranging from £657 for those emitting 120g/km or less to £2,297 for vehicles emitting 225g/km. Drivers can account for these charges on an annual, quarterly, or monthly basis, and they have options for recovering VAT based on their usage. For older vehicles lacking CO2 emissions data, HMRC will determine the applicable CO2 band based on engine size. HMRC has advised businesses to calculate the correct road fuel charge based on their vehicle's emissions and the length of their VAT accounting period, which can be one, three, or twelve months.
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The new VAT rates will affect the costs for many drivers, particularly those with higher emissions vehicles, potentially influencing their fuel expenses and business accounting.
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