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.
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Electrifying · 10 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.
Law360 · 15 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.
FE Week · 29 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 The ruling centres on the Lennartz mechanism, which HMRC had withdrawn in 2010.
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.
The VAT Team · about 1 month ago
The article explains how place of supply rules determine VAT treatment for cross‑border services, outlining B2B and B2C rules, land‑related exceptions, and the importance of identifying place of supply to avoid compliance issues. It also highlights that UK VAT applies if the place of supply is the UK, and that non‑established businesses face a nil registration threshold.
GOV.UK · about 1 month ago
The UK government’s Simplified Customs Declaration Process (SCDP) offers a two‑stage electronic declaration method that reduces border controls for authorised traders. Importers must be pre‑authorised, hold an EORI number, and submit a supplementary declaration within ten calendar days of the reporting period’s end, keeping records for four years.
£657 for a 12‑month period, £163 for a 3‑month period, and £54 for a 1‑month period, effective from 1 May 2026.
They remain in effect until 30 April 2027.
The CO₂ band is assigned based on engine size: ≤1400cc falls under the 140g/km band, 1401‑2000cc under 175g/km, and >2000cc under the 225g/km or more band.
£2,297 for a 12‑month period, £574 for a 3‑month period, and £190 for a 1‑month period, effective from 1 May 2026.
This summary was published on VATfaqs.com on 2 May 2026. It relates to VAT developments in United Kingdom. The original source is Geo.
