tmcmatchVAT fuel scale charge 2026/27: the table, how it works, and when not to use it
When a VAT-registered business buys fuel for a car and reclaims all the VAT, but the car is also driven privately, HMRC wants output VAT back on the private use. The fuel scale charge is the shortcut: a fixed amount per car per VAT period, set by the car’s CO2 emissions, instead of tracking private miles. The amounts change every 1 May. This page sets out HMRC’s table for 1 May 2026 to 30 April 2027 beside the previous year’s, the VAT inside each figure, and the two alternatives that can cost less.
Key points
- What it is: output VAT on private use of business-bought fuel, at a flat rate by CO2 band.
- 2026/27: from £163 to £574 per quarter, VAT-inclusive; the VAT is one sixth.
- New rates from the first VAT period starting on or after 1 May 2026.
- Per person, per car, per period.
- Optional: claim no fuel VAT at all, or claim only the business share from mileage records.
What the scale charge is
A scale charge is a way of accounting for output tax on road fuel bought by a business for cars that is then put to private use.Read it on legislation.gov.uk
It is an output tax charge, not a restriction on input tax: the business reclaims the VAT on all its fuel, then pays some back through the scale charge. The amount depends on two things: the car’s CO2 band, and the length of the VAT period. HMRC: “based on your car’s CO2 emissions, and the length of your VAT accounting period. This will be either one, 3, or 12 months.” And it is counted per driver and vehicle: “The flat rate values given in this guide apply to one individual, in connection with a specific vehicle, for the relevant accounting period.”
Fuel scale charges from 1 May 2026
“The VAT Road fuel scale charges are amended with effect from 1 May 2026.” “Businesses must use the new scales from the start of the next prescribed accounting period beginning on or after 1 May 2026.” “The valuation table shows the scale charges from 1 May 2026 to 30 April 2027, these include VAT.”
| CO2 (g/km) | 12 months | 3 months | 1 month | VAT in 3-month charge | 3 months, 2025/26 |
|---|---|---|---|---|---|
| 120 or less | £657.00 | £163.00 | £54.00 | £27.17 | £164.00 |
| 125 | £983.00 | £246.00 | £81.00 | £41.00 | £248.00 |
| 130 | £1,051.00 | £261.00 | £86.00 | £43.50 | £263.00 |
| 135 | £1,114.00 | £278.00 | £92.00 | £46.33 | £280.00 |
| 140 | £1,182.00 | £294.00 | £98.00 | £49.00 | £297.00 |
| 145 | £1,245.00 | £311.00 | £103.00 | £51.83 | £313.00 |
| 150 | £1,314.00 | £328.00 | £109.00 | £54.67 | £330.00 |
| 155 | £1,377.00 | £344.00 | £114.00 | £57.33 | £347.00 |
| 160 | £1,445.00 | £361.00 | £119.00 | £60.17 | £363.00 |
| 165 | £1,508.00 | £377.00 | £125.00 | £62.83 | £380.00 |
| 170 | £1,576.00 | £393.00 | £130.00 | £65.50 | £396.00 |
| 175 | £1,640.00 | £409.00 | £136.00 | £68.17 | £412.00 |
| 180 | £1,708.00 | £426.00 | £142.00 | £71.00 | £429.00 |
| 185 | £1,771.00 | £442.00 | £146.00 | £73.67 | £446.00 |
| 190 | £1,839.00 | £459.00 | £152.00 | £76.50 | £462.00 |
| 195 | £1,902.00 | £475.00 | £158.00 | £79.17 | £479.00 |
| 200 | £1,971.00 | £492.00 | £163.00 | £82.00 | £496.00 |
| 205 | £2,034.00 | £509.00 | £169.00 | £84.83 | £512.00 |
| 210 | £2,102.00 | £524.00 | £174.00 | £87.33 | £528.00 |
| 215 | £2,165.00 | £541.00 | £180.00 | £90.17 | £545.00 |
| 220 | £2,233.00 | £557.00 | £185.00 | £92.83 | £561.00 |
| 225 or more | £2,297.00 | £574.00 | £190.00 | £95.67 | £578.00 |
The 2026/27 figures are slightly lower than 2025/26 at every band shown — the lowest quarterly charge moves from £164 to £163, the highest from £578 to £574. The legal basis is “read Schedule 2 of the VAT (Flat-rate Valuation of Supplies of Fuel for Private Use) Order 2013.”
Finding the band
- Rounding: “If the figure is not a multiple of 5, round it down to the nearest multiple of 5.” A 142g/km car is in the 140 band.
- Older cars: “If your car is too old to have a CO2 emissions figure, you should identify the CO2 band based on its engine size.” 1,400cc or less uses the 140 band, over 1,400cc to under 2,000cc the 175 band, and over 2,000cc the top band.
- Part of a period: HMRC says to “work out how much of the accounting period you used each car for, and record this as a percentage of the accounting period.” and apply that percentage to the charge.
A worked example
A company car at 140g/km, quarterly VAT returns. The business buys £600 of fuel for it in the quarter, VAT included — an assumed figure for illustration.
| Input VAT reclaimed on fuel (£600 × 1/6) | £100.00 |
|---|---|
| Output VAT on the scale charge (£294 × 1/6) | −£49.00 |
| Net VAT recovered | £51.00 |
The scale charge does not depend on how much fuel was bought. On a car that uses little fuel, or is driven privately very little, the output VAT can exceed what the business would have recovered on the business miles alone — which is when the alternatives below are worth running the numbers on.
The alternatives
Claim no VAT on fuel
“If you do not claim any input tax on any road fuel bought by the business, then you do not need to account for output tax on the private use of the fuel.” The rule applies to all road fuel bought by the business, so it is an all-or-nothing choice.
Claim only the business share
With detailed mileage records, a business can reclaim VAT on the business proportion of fuel only instead of reclaiming it all and paying the scale charge. VAT Notice 700/64 sets out the method, with a worked example: “If for example, your records show that the total mileage is 4,290, of which 3,165 is business mileage, and the total cost of the fuel is £368.” “The cost of the business mileage is £368 × (3,165 ÷ 4,290) = £271.49.” The VAT reclaimable is one sixth of the business cost. The price is the record-keeping: every journey, business or private, logged for every car.
Employees’ own cars
The scale charge is about fuel the business buys for its cars. Where employees use their own cars and claim mileage, VAT is reclaimed on the fuel element of the allowance instead, with fuel receipts — set out on VAT on mileage claims. Where the business reimburses actual fuel, HMRC says: “If you reimburse your employees for road fuel used you can treat the VAT they paid as your input tax. But you must be able to show that you have reimbursed them for their actual expenditure on the road fuel.”
We are paid a fixed fee per enquiry, agreed in advance, identical whichever supplier receives it. Fuel VAT is here because the choice between company cars, pool cars, hire cars and mileage decides which of these rules applies.
Reviewing how staff travel by road?
Describe the requirement once. It goes to no more than three suppliers, once each.
For the finance team
- List each car with private use, its CO2 figure, and the driver.
- Switch to the 2026/27 table from the first VAT period starting on or after 1 May 2026.
- Use the 1, 3 or 12-month column matching the VAT return period.
- Apportion for cars held for part of a period.
- Once a year, compare the scale charge with business-share recovery and with claiming nothing.
- Keep the car’s income tax position separate: the car fuel benefit for employees is a different charge, on company car tax (BIK) rates.
Hire and lease VAT is on VAT on car hire and leasing. This page quotes HMRC guidance as read on 2026-10-08; it is not tax advice.
Common questions
What is the VAT fuel scale charge?
VAT Notice 700/64: “A scale charge is a way of accounting for output tax on road fuel bought by a business for cars that is then put to private use.” The charge is a fixed VAT-inclusive amount per car, set by CO2 band.
What are the fuel scale charges for 2026/27?
From 1 May 2026, from £163 a quarter for cars at 120g/km or less to £574 for 225g/km or more. “Businesses must use the new scales from the start of the next prescribed accounting period beginning on or after 1 May 2026.”
How much VAT is in the fuel scale charge?
One sixth of it at the standard rate. For a quarterly charge of £294 (a 140g/km car), the output VAT is £49.00.
Do I have to use the fuel scale charge?
No. “If you do not claim any input tax on any road fuel bought by the business, then you do not need to account for output tax on the private use of the fuel.” Alternatively, keep mileage records and claim only the business proportion of fuel VAT.
How do I find the CO2 band?
From the car’s logbook or the online check. “If the figure is not a multiple of 5, round it down to the nearest multiple of 5.” “If your car is too old to have a CO2 emissions figure, you should identify the CO2 band based on its engine size.”
Does the fuel scale charge apply per car or per employee?
“The flat rate values given in this guide apply to one individual, in connection with a specific vehicle, for the relevant accounting period.”
Sources cited on this page
- HMRC — VAT road fuel scale charges from 1 May 2026 to 30 April 2027
- HMRC — VAT road fuel scale charges from 1 May 2025 to 30 April 2026
- HMRC — VAT on motoring expenses (VAT Notice 700/64)
Every figure above was read from the source it is attributed to on 20 September 2026. How we check this.
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