HMRC confirms £2,297 VAT charges for petrol drivers from Could 1

The brand new prices for each petrol and diesel drivers will probably be in impact till April 30, 2027.

Refueling at a modern gas station with green fuel pumps and a customer filling their vehicle in a well-lit, organized space during daytime

The brand new VAT highway gasoline scale prices will probably be in place till April 30, 2027 (Picture: Getty)

HM Income and Customs (HMRC) has confirmed the highest new VAT fee for petrol and diesel drivers throughout the UK.

The brand new VAT highway gasoline scale prices got here into impact on Could 1, 2026, and can stay in place till April 30, 2027, with the modifications anticipated to affect 1000’s of drivers. Highway gasoline scale prices are a hard and fast quantity utilized by HMRC that’s added to a VAT return to account for the non-public consumption of gasoline in a enterprise or work car. These prices apply to automobiles based mostly on CO2 emissions, and HMRC updates the charges yearly.

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The costs are accounted for by together with them in Field 1 of your VAT return and are fastened quantities that are unaffected by the variety of non-public miles you clock up within the interval.

HMRC mentioned drivers might want to work out the proper highway gasoline cost based mostly on their automotive’s CO2 emissions, and the size of their VAT accounting interval, which will probably be both one, three or 12 months.

It explains: “You’ll have to work out the proper highway gasoline cost, based mostly in your automotive’s CO2 emissions, and the size of your VAT accounting interval. This will probably be both one, three or 12 months.

“The VAT Highway gasoline scale prices are amended with impact from 1 Could, 2026. Companies should use the brand new scales from the beginning of the subsequent prescribed accounting interval starting on or after 1 Could, 2026.”

The charges improve in bands of 5g per kilometre of CO2 emissions, with VAT-inclusive prices starting from £657 for automobiles emitting 120g or much less of CO2 per km, all the way in which as much as to £2,297 a 12 months 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.

Automobiles set to be affected by the highest cost stage embrace the Land Rover Defener 90 5.0 V8, the Audi RS7 4.0 V8 and the Volkswagen Amarok 3.0 TDI, which all emit greater than 225g/km of CO2.

Listed are the brand new VAT highway gasoline scale prices from Could 1, 2026, to April 30, 2027, for a 12-month, three-month and one-month accounting interval, as confirmed by HMRC: