HMRC’s new VAT rates explained: what petrol and diesel drivers need to know now
HMRC has launched new road fuel VAT rates for petrol and diesel drivers across the UK, starting today, 1 May 2026.
The new rates will remain in effect until April 30, 2027. Thousands of drivers are expected to be affected by these changes.
Fuel road charges are used on a VAT return to account for the private use of fuel in a business vehicle. HMRC updates these rates once a year.
Drivers have three options under current rules. They can:
Recover the full VAT and pay the charge on the road fuel scale,
Do not recover any VAT,
Follow the breakdown between business and personal mileage to partially recover VAT.
Under the new rates, vehicles emitting less than 120g of CO2 per kilometer will be charged £657 including VAT for a period of 12 months. Charges increase in increments of 5g/km, reaching £2,297 for vehicles emitting 225g/km or more.
Drivers can justify fees on an annual, quarterly or monthly basis.
For vehicles without a CO2 emissions figure due to their age, the CO2 bracket is determined by the engine displacement.
Engines of 1,400 cc or less fall below the 140 g/km band.
Engines larger than 1,400 cc but less than 2,000 cc fall below 175 g/km.
Engines over 2,000 cc fall into the 225 g/km or more category.
Here is the full list of updated VAT scales for road fuels:
VAT Royalties on road fuels – Valuation table (VAT included – from May 1, 2026 to April 30, 2027)
Description of the vehicle: vehicle CO₂ emissions figure
VAT included compensation for a prescribed accounting period of 12 months (£)
Consideration including VAT for a prescribed accounting period of 3 months (£)
Consideration including VAT for a prescribed accounting period of one month (£)
120 or less
657.00
163.00
54h00
125
983.00
246.00
81.00
130
1,051.00
261.00
86.00
135
1,114.00
278.00
92.00
140
1,182.00
294.00
98.00
145
1,245.00
311.00
103.00
150
1,314.00
328.00
109.00
155
1,377.00
344.00
114.00
160
1,445.00
361.00
119.00
165
1,508.00
377.00
125.00
170
1,576.00
393.00
130.00
175
1,640.00
409.00
136.00
180
1,708.00
426.00
142.00
185
1,771.00
442.00
146.00
190
1,839.00
459.00
152.00
195
1,902.00
475.00
158.00
200
1,971.00
492.00
163.00
205
2,034.00
509.00
169.00
210
2,102.00
524.00
174.00
215
2,165.00
541.00
180.00
220
2,233.00
557.00
185.00
225 or more
2,297.00
574.00
190.00
Annual VAT rate table
CO₂ band
Fuel scale tax VAT, 12 month period (£)
VAT on 12 months of billing (£)
12 month fee excluding VAT (£)
120 or less
657.00
109.50
547.50
125
983.00
163.83
819.17
130
1,051.00
175.17
875.83
135
1,114.00
185.67
928.33
140
1,182.00
197.00
985.00
145
1,245.00
207.50
1,037.50
150
1,314.00
219.00
1,095.00
155
1,377.00
229.50
1,147.50
160
1,445.00
240.83
1,204.17
165
1,508.00
251.33
1,256.67
170
1,576.00
262.67
1,313.33
175
1,640.00
273.33
1,366.67
180
1,708.00
284.67
1,423.33
185
1,771.00
295.17
1,475.83
190
1,839.00
306.50
1,532.50
195
1,902.00
317.00
1,585.00
200
1,971.00
328.50
1,642.50
205
2,034.00
339.00
1,695.00
210
2,102.00
350.33
1,751.67
215
2,165.00
360.83
1,804.17
220
2,233.00
372.17
1,860.83
225 or more
2,297.00
382.83
1,914.17
Quarterly VAT rate table
CO₂ band
Fuel scale tax, 3 month period (£)
VAT on 3 months of billing (£)
3 month fee excluding VAT (£)
120 or less
163.00
27.17
135.83
125
246.00
41:00
205.00
225 or more
574.00
95.67
478.33
Monthly VAT rate table
CO₂ band
Fuel scale tax, one month period (£)
VAT on 1 month of billing (£)
One month’s fee excluding VAT (£)
120 or less
54h00
9:00 a.m.
45:00
125
81.00
1:50 p.m.
67.50
130
86.00
2:33 p.m.
71.67
135
92.00
3:33 p.m.
76.67
140
98.00
4:33 p.m.
81.67
145
103.00
17.17
85.83
150
109.00
6:17 p.m.
90.83
155
114.00
7:00 p.m.
95.00
160
119.00
19.83
99.17
165
125.00
20.83
104.17
170
130.00
21.67
108.33
175
136.00
22.67
113.33
180
142.00
23.67
118.33
185
146.00
24:33
121.67
190
152.00
25.33
126.67
195
158.00
26.33
131.67
200
163.00
27.17
135.83
205
169.00
28.17
140.83
210
174.00
29:00
145.00
215
180.00
30:00
150.00
220
185.00
30.83
154.17
225 or more
190.00
31.67
158.33
HMRC states that drivers should calculate the accounting period to which each rate applies and record it as a percentage accordingly.
