HMRC bringing in new rules for drivers from May 1 with 'just a week's notice'
New VAT road fuel charges coming into effect from May 1, after HMRC published the updated charges on April 16.
HMRC is set to bring in a big change from May 1 which could hit drivers with a £2,314 blow. New VAT road fuel charges coming into effect from May 1, after HMRC published the updated charges on April 16.
Drivers were warned just two weeks ahead of the new rates taking effect - and now fresh alerts have been issued now we're just days out. Herbert Lewis Williams & Associates warned: "The revalorisation of fuel scale charges is no longer part of the Budget process, and the tables are instead published by HMRC annually.
"Where the CO2 emission figure is not a multiple of five, the figure is rounded down to the next multiple of five to determine the level of the charge. For a bi-fuel vehicle which has two CO2 emissions figures, the lower of the two figures should be used. There are special rules for cars which are too old to have a CO2 emissions figure."
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HMRC added: "The VAT Road fuel scale charges are amended with effect from 1 May 2025. Businesses must use the new scales from the start of the next prescribed accounting period beginning on or after 1 May 2025.
"You’ll need to work out the correct road fuel charge, based on your car’s CO2 emissions, and the length of your VAT accounting period. This will be either one, 3, or 12 months.
"The flat rate values given in this guide apply to one individual, in connection with a specific vehicle, for the relevant accounting period." For cars emitting 120g of CO2 or less, the annual fee drops from £702 to £661.
For mid-range vehicles with emissions of 175g, the charge goes down from £1,752 to £1,652. Even for cars with the highest emissions (225g or more), the annual fee is lowered from £2,454 to £2,314.
The monthly fees follow a similar trend, with low-emission vehicles now being charged £54 in VAT, down from £58, and high-emission vehicles seeing their charges reduced from £203 to £192.
If your car is too old to have a CO2 emissions figure, you should identify the CO2 band based on its engine size.