The brand new fees will probably be in impact from Could 1, 2026, till April 30, 2027.
HMRC has confirmed new VAT highway gas scale fees from Could 1, 2026 (Picture: Getty)
HM Income and Customs (HMRC) has confirmed new VAT charges for petrol and diesel drivers throughout the UK.
The brand new VAT highway gas scale fees are efficient from Could 1, 2026, and can stay in place till April 30, 2027, with 1000’s of drivers anticipated to be impacted by the adjustments. Street gas scale fees are a set quantity permitted by HMRC which might be added to a VAT return to account for the non-public consumption of gas in a enterprise automobile. HMRC updates these charges as soon as per 12 months and the fees apply to automobiles primarily based on CO2 emissions.
We use your sign-up to supply content material in methods you have consented to and to enhance our understanding of you. This may occasionally embrace adverts from us and third events primarily based on our understanding. You possibly can unsubscribe at any time. Learn our Privateness Coverage
The costs are accounted for by together with them in Field 1 of your VAT return and are fastened quantities no matter the quantity of personal mileage you clock up.
Drivers have the choice of recovering the VAT in full and paying the highway gas scale cost, not recovering any VAT in any respect, or monitoring the break up between enterprise and private mileage to partially get better some VAT.
The charges enhance in bands of 5g per kilometre of CO2 emissions, with VAT-inclusive fees starting from £657 for automobiles emitting 120g or much less of CO2 per km, to £2,297 for automobiles emitting 225g/km for a 12-month interval. Drivers can account for the fees on an annual, quarterly or month-to-month foundation.
HMRC mentioned: “The VAT Street gas scale fees are amended with impact from 1 Could 2026. Companies should use the brand new scales from the beginning of the following prescribed accounting interval starting on or after 1 Could 2026.
“You’ll must work out the right highway gas cost, primarily based in your automobile’s CO2 emissions, and the size of your VAT accounting interval. This will probably be both one, 3, or 12 months.”
Listed are the brand new VAT highway gas scale fees from Could 1, 2026, to April 30, 2027, for a 12 month, three month and one month accounting interval, as confirmed by HMRC:
CO₂ Emissions: 120g/km or much less
- 12 Month Interval: £657.00
- 3 Month Interval: £163.00
- 1 Month Interval: £54.00
CO₂ Emissions: 125g/km – 150g/km
- 125g/km: £983.00 (12 months) | £246.00 (3 months) | £81.00 (1 month)
- 130g/km: £1,051.00 (12 months) | £261.00 (3 months) | £86.00 (1 month)
- 135g/km: £1,114.00 (12 months) | £278.00 (3 months) | £92.00 (1 month)
- 140g/km: £1,182.00 (12 months) | £294.00 (3 months) | £98.00 (1 month)
- 145g/km: £1,245.00 (12 months) | £311.00 (3 months) | £103.00 (1 month)
- 150g/km: £1,314.00 (12 months) | £328.00 (3 months) | £109.00 (1 month)
CO₂ Emissions: 155g/km – 180g/km
- 155g/km: £1,377.00 (12 months) | £344.00 (3 months) | £114.00 (1 month)
- 160g/km: £1,445.00 (12 months) | £361.00 (3 months) | £119.00 (1 month)
- 165g/km: £1,508.00 (12 months) | £377.00 (3 months) | £125.00 (1 month)
- 170g/km: £1,576.00 (12 months) | £393.00 (3 months) | £130.00 (1 month)
- 175g/km: £1,640.00 (12 months) | £409.00 (3 months) | £136.00 (1 month)
- 180g/km: £1,708.00 (12 months) | £426.00 (3 months) | £142.00 (1 month)
CO₂ Emissions: 185g/km – 220g/km
- 185g/km: £1,771.00 (12 months) | £442.00 (3 months) | £146.00 (1 month)
- 190g/km: £1,839.00 (12 months) | £459.00 (3 months) | £152.00 (1 month)
- 195g/km: £1,902.00 (12 months) | £475.00 (3 months) | £158.00 (1 month)
- 200g/km: £1,971.00 (12 months) | £492.00 (3 months | £163.00 (1 month)
- 205g/km: £2,034.00 (12 months) | £509.00 (3 months) | £169.00 (1 month)
- 210g/km: £2,102.00 (12 months) | £524.00 (3 months) | £174.00 (1 month)
- 215g/km: £2,165.00 (12 months) | £541.00 (3 months) | £180.00 (1 month)
- 220g/km: £2,233.00 (12 months) | £557.00 (3 months) | £185.00 (1 month)
CO₂ Emissions: 225g/km or extra
- 12 Month Interval: £2,297.00
- 3 Month Interval: £574.00
- 1 Month Interval: £190.00
For older vehicles with no CO2 emissions determine, the CO2 band is as an alternative decided by the scale of the engine.
HMRC explains: “In case your automobile is just too outdated to have a CO2 emissions determine, you must establish the CO2 band primarily based on its engine dimension. If its cylinder capability is:
- 1,400 or much less, use CO2 band 140
- greater than 1,400cc however lower than 2,000cc, use CO2 band 175
- greater than 2,000 cc, use CO2 band 225 or extra
To do that, work out how a lot of the accounting interval you used every automobile for, and file this as a share of the accounting interval. Apply this share to every highway gas scale cost, to get a complete determine.”
Leave a Reply