What is the new VAT road fuel scale charge for a 12‑month period for vehicles emitting 120g/km or less CO2?

£657, effective from 1 May 2026.

When must businesses start using the new road fuel scale charges?

From the start of the next prescribed accounting period beginning on or after 1 May 2026.

How are road fuel scale charges calculated for older cars without a CO2 emissions figure?

Determine the CO2 band based on engine size: ≤1400cc → 140g band, 1401‑2000cc → 175g band, >2000cc → 225g band, then apply the appropriate charge.

What are the 3‑month road fuel scale charges for vehicles emitting 225g/km or more CO2?

£574, effective from 1 May 2026.

HMRC confirms new VAT rates for petrol and diesel drivers from May 1

New VAT road fuel charges introduced – here’s what you need to know

iNews · about 20 hours ago

The UK government has introduced a new VAT road fuel charge regime effective from 1 May 2026, applying to all VAT‑registered businesses that reclaim VAT on fuel used for private company car use. The charges vary by vehicle CO2 emissions and accounting period, with rates ranging from £54 to £190 per month or £657 to £2,297 per 12‑month period. Businesses must calculate the correct charge based on CO2 emissions or engine size if no CO2 figure is available.

HMRC introduces new VAT rates for petrol and diesel drivers

Geo · 1 day ago

HMRC has launched new VAT road fuel scale charges for petrol and diesel drivers in the UK, effective from 1 May 2026 and lasting until 30 April 2027. The charges vary by CO₂ emissions band, ranging from £657 for low‑emission vehicles to £2,297 for high‑emission ones over a 12‑month period. Drivers can account for the charges annually, quarterly or monthly and must calculate the applicable rate for each period.

Government appeals VAT ruling on public charge points

Electrifying · 11 days ago

The UK Treasury has appealed a tax tribunal decision that ruled public electric vehicle charge points should be subject to 5% VAT. The tribunal had determined that public charge points fall within the domestic electricity supply VAT cut, but the government is contesting this. The appeal was lodged within the 56‑day deadline.

UK Travel Co. Can Challenge VAT Credit Adjustment

Law360 · 16 days ago

A UK court decision allows a travel agency to contest HM Revenue & Customs’ trimming of its VAT credit by approximately £187,000. The ruling spiked the tax authority’s bid for an early end to the case, giving the agency the right to pursue a full challenge. The case highlights the importance of monitoring HMRC adjustments and the potential for judicial review.

Colchester college wins Court of Appeal VAT fight

FE Week · 30 days ago

The Court of Appeal has ruled in favour of Colchester Institute in a VAT dispute with HMRC, allowing the college to reclaim VAT on pre‑2010 capital projects. The decision could extend to an estimated 20‑30 other colleges and raises uncertainty for charities that may lose VAT discounts. The ruling centres on the Lennartz mechanism, which HMRC had withdrawn in 2010.

UK College Wins VAT Dispute Over Tax Status Of Funding

Law360 · about 1 month ago

A London court ruled that a technical college receiving free courses funded by the UK government must treat the funding as consideration for its taxable supply of services, making it subject to VAT that can be recovered from HMRC. The decision clarifies the tax treatment of government funding for educational services. The ruling was issued on March 27, 2026.