Full list of new HMRC charges after rule introduced in May | UK | News

HM Revenue and Customs has introduced new VAT road fuel scale charges for business vehicles after the latest annual update came into force in May. The charges apply to VAT-registered businesses that provide fuel for company cars, which are also used for private journeys.

HMRC updates the road fuel scale charges every year, and the new rates apply to any VAT accounting period starting on or after May 1, 2026. The system is designed to cover private mileage without requiring businesses to log every single personal trip. Instead of keeping detailed records, firms can apply a flat-rate charge based on the vehicle’s CO2 emissions.

The higher the emissions, the higher the charge.

HMRC said: “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.”

The charges vary depending on whether a business files VAT returns monthly, quarterly or annually.

Hugh Acland, Chief Commercial Officer at Capital on Tap, warned that some firms may be paying more than they need to.

He said: “There are a few different ways to treat VAT on fuel, but many businesses default to reclaiming it in full and applying the scale charge without checking if it’s actually the most cost-effective option.

“The reality is that the scale charge is a flat rate based on emissions, not actual usage, so if private mileage is low, it can mean paying more VAT than necessary.”

Businesses should also note that if a car’s CO2 figure is not a multiple of five, it must be rounded down to the nearest band.

For example, a car emitting 142g/km would fall into the 140 band.

If a vehicle is too old to have an official CO2 rating, engine size must be used instead. Cars up to 1,400cc use the 140 band.

Vehicles between 1,401cc and 2,000cc use the 175 band. Cars over 2,000cc use the 225 band.

For bi-fuel vehicles with two different CO2 ratings, businesses can use the lower figure.

Below is the full list of VAT road fuel scale charges for May 1, 2026, to April 30, 2027 (VAT-inclusive).

• 120g/km or less – £54 (monthly), £163 (quarterly), £657 (annually)
• 125g/km – £81 (monthly), £246 (quarterly), £983 (annually)
• 130g/km – £86 (monthly), £261 (quarterly), £1,051 (annually)
• 135g/km – £92 (monthly), £278 (quarterly), £1,114 (annually)
• 140g/km – £98 (monthly), £294 (quarterly), £1,182 (annually)
• 145g/km – £103 (monthly), £311 (quarterly), £1,245 (annually)
• 150g/km – £109 (monthly), £328 (quarterly), £1,314 (annually)
• 155g/km – £114 (monthly), £344 (quarterly), £1,377 (annually)
• 160g/km – £119 (monthly), £361 (quarterly), £1,445 (annually)
• 165g/km – £125 (monthly), £377 (quarterly), £1,508 (annually)
• 170g/km – £130 (monthly), £392 (quarterly), £1,570 (annually)
• 175g/km – £136 (monthly), £409 (quarterly), £1,638 (annually)
• 180g/km – £141 (monthly), £425 (quarterly), £1,701 (annually)
• 185g/km – £147 (monthly), £442 (quarterly), £1,770 (annually)
• 190g/km – £152 (monthly), £457 (quarterly), £1,832 (annually)
• 195g/km – £158 (monthly), £474 (quarterly), £1,900 (annually)
• 200g/km – £164 (monthly), £491 (quarterly), £1,964 (annually)
• 205g/km – £169 (monthly), £507 (quarterly), £2,031 (annually)
• 210g/km – £174 (monthly), £524 (quarterly), £2,095 (annually)
• 215g/km – £180 (monthly), £541 (quarterly), £2,163 (annually)
• 220g/km – £185 (monthly), £556 (quarterly), £2,226 (annually)
• 225g/km or more – £191 (monthly), £574 (quarterly), £2,297 (annually)

These rates will remain in place until April 30, 2027, when HMRC is expected to publish updated figures for the following tax year.

More information can be found here.