HMRC Announces New VAT Charges for Older Cars

• HMRC has introduced updated VAT road fuel scale charges for business drivers of older petrol and diesel cars, effective from 1 May 2026 to 30 April 2027.
• The fixed charges are based on CO2 emissions and must be included in Box 1 of VAT returns, regardless of actual private mileage.
• Rates range from £657 to £2,297 per year depending on emissions, with monthly, quarterly, or annual accounting options.
• For cars without CO2 figures, usually older vehicles first registered before 2001, drivers must use engine size to determine the correct band.

Source: walesonline.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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