Her Majesty's Revenue and Customs (HMRC) has officially confirmed the updated VAT road fuel scale charges, which came into effect last month. The new rates, introduced by the Labour government, apply from 1 May 2026, and businesses are required to use them from the start of their next prescribed accounting period beginning on or after that date.
How to Calculate the Correct Charge
According to HMRC, businesses must determine the appropriate road fuel charge based on their car's CO2 emissions and the length of their VAT accounting period, which can be one, three, or 12 months. For older vehicles without a CO2 emissions figure, the tax band should be identified by engine size: 1,400cc or less falls into CO2 band 140; more than 1,400cc but less than 2,000cc uses band 175; and over 2,000cc falls into band 225 or more.
Detailed Scale Charges
CO2 Emissions: 120g/km or less
- 12 Month Period: £657.00
- 3 Month Period: £163.00
- 1 Month Period: £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 more
- 12 Month Period: £2,297.00
- 3 Month Period: £574.00
- 1 Month Period: £190.00
HMRC also reminded businesses that if a car is used for only part of the accounting period, the charge should be prorated based on the percentage of time the vehicle was used. This percentage is then applied to the relevant scale charge to arrive at the total figure.
