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 commercial vehicles after the latest annual update came into force in May. The charges apply to VAT-registered businesses that supply fuel to company vehicles that are also used for private journeys.

HMRC updates road fuel scale charges each year and the new rates apply to all VAT accounting periods beginning on or after 1 May 2026. The system is designed to cover specific mileage without requiring businesses to record each personal trip. Instead of keeping detailed records, companies can apply a flat-rate fee based on the vehicle’s CO2 emissions.

The higher the emissions, the higher the fee.

HMRC said: “Businesses must use the new scales from the start of the next prescribed accounting period starting on or after 1 May 2026.

“You will need to calculate the correct on-road fuel charge depending on your car’s CO2 emissions and the length of your VAT calculation period.”

Fees vary depending on whether the business files VAT monthly, quarterly or annually.

Hugh Acland, Commercial Director at Capital on Tap, warned that some firms may pay more than they need to.

He said: “There are a number of different ways to handle VAT on fuel, but many businesses default to claiming it all back and apply the scale charge without checking whether this is truly 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 this could mean paying more VAT than required.”

Businesses should also remember that if a car’s CO2 figure is not a multiple of five, this should be rounded up to the nearest band.

For example, a car with emissions of 142g/km will fall into the 140 band.

If the vehicle is too old to have an official CO2 rating, the engine size should 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 dual fuel vehicles with two different CO2 values, businesses can use the lower figure.

Below is the full list of VAT road fuel scale charges from 1 May 2026 to 30 April 2027 (including VAT).

• 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 (annual)
• 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 (annual)
• 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 (annual)
• 190g/km – £152 (monthly), £457 (quarterly), £1,832 (annual)
• 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 (annual)

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

More information can be found Here.