HMRC has confirmed new VAT road fuel scale charges that will apply from 1 May 2026 to 30 April 2027. These charges are used by drivers to account for private consumption of fuel in a business vehicle on their VAT returns.
Key Details of the New Charges
Businesses must use the updated scale charges from the start of their next prescribed accounting period beginning on or after 1 May 2026. The correct charge is determined based on the car's CO2 emissions and the length of the VAT accounting period, which can be one, three, or twelve months.
HMRC, the tax authority under the Labour Party government, stated: "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."
It added: "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."
Flat Rate Values and Application
The flat rate values provided in the guide apply to one individual for a specific vehicle for the relevant accounting period. The valuation table includes scale charges from 1 May 2026 to 30 April 2027, inclusive of VAT.
The scale ranges from CO2 emissions of 120 or less to 225 or more. For older cars without a CO2 emissions figure, the band is determined by engine size: 1,400cc or less uses CO2 band 140; more than 1,400cc but less than 2,000cc uses band 175; and more than 2,000cc uses band 225 or more.
Calculating the Charge
To calculate the charge, businesses must determine how much of the accounting period each car was used and record this as a percentage. This percentage is then applied to each road fuel scale charge to obtain a total figure. If multiple cars fall under the same CO2 emissions figure, they are treated as one car.
HMRC advises checking the car's CO2 emissions figure online if it is not available in the logbook. If the figure is not a multiple of five, it should be rounded down to the nearest multiple of five.
