New HMRC VAT road fuel scale charges were introduced on May 1, 2026. These changes will affect thousands of drivers across the UK.
The new VAT-inclusive charge is £657 for vehicles emitting less than 120g of CO2 per kilometre. For vehicles emitting 225g/km or more, the charge increases to £2,297.
Drivers can recover VAT in full or not at all. They may also track mileage to recover a portion of the VAT based on business use.
Key details:
- Vehicles without a CO2 emissions figure are assigned a band based on engine size.
- Engines of 1,400cc or less fall under the 140g/km band.
- Engines above 1,400cc but below 2,000cc fall under the 175g/km band.
HMRC updates these VAT rates annually. The current rates will remain effective until April 30, 2027. Officials have urged drivers to familiarize themselves with these changes as they could significantly impact financial planning for many.
