HM Revenue & Customs (HMRC) has unveiled the updated road fuel scale charges that will apply from May 1, 2026, through April 30, 2027. These charges are intended to capture VAT on fuel purchased by businesses but used for private, non-business journeys.
Road fuel scale charges are fixed amounts added to VAT returns, enabling businesses to reclaim VAT on fuel without the need to maintain detailed private mileage logs. The charges are determined according to a vehicle’s CO2 emissions, encouraging greater transparency and compliance.
For the upcoming year, vehicles emitting less than 120g of CO2 per kilometre will incur a VAT-inclusive charge of £657 over a 12-month period. Charges increase progressively in 5g/km CO2 bands, with the highest category—vehicles emitting 225g/km or more—subject to a £2,297 charge.
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Here is a summary of the 12-month charges by CO2 emissions:
- 120g/km or less: £657
- 125g/km: £983
- 130g/km: £1,051
- 135g/km: £1,114
- 140g/km: £1,182
- 145g/km: £1,245
- 150g/km: £1,314
- 155g/km: £1,377
- 160g/km: £1,445
- 165g/km: £1,508
- 170g/km: £1,576
- 175g/km: £1,640
- 180g/km: £1,708
- 185g/km: £1,771
- 190g/km: £1,839
- 195g/km: £1,902
- 200g/km: £1,971
- 205g/km: £2,034
- 210g/km: £2,102
- 215g/km: £2,165
- 220g/km: £2,233
- 225g/km or more: £2,297
HMRC’s guidance clarifies that these charges can be accounted for on an annual, quarterly, or monthly basis, with amounts adjusted accordingly. For example, the £657 annual charge for low-emission vehicles breaks down to £163 quarterly or £54 monthly. Similarly, the highest band charge of £2,297 annually corresponds to £574 quarterly or £190 monthly.
The CO2 bands align with engine sizes as follows: vehicles with engines of 1400cc or less fall under the 140g/km band; those between 1401cc and 2000cc fall under the 175g/km band; and engines over 2000cc align with the 225g/km or higher band.
These updated charges provide businesses and drivers with clear parameters to calculate VAT liabilities on fuel used privately, simplifying tax compliance while encouraging environmentally responsible vehicle use.