HMRC has announced new VAT road fuel scale charges for petrol and diesel vehicles in the UK, effective from 1 May 2026 and lasting until 30 April 2027. The charges vary by CO2 emissions and accounting period, with specific rates for 12‑month, 3‑month and 1‑month periods. Businesses must adopt the new scales from the next prescribed accounting period beginning on or after 1 May 2026.
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The Independent · about 5 hours ago
The UK government will remove VAT from domestic electricity bills from 1 October 2026, cutting the rate from 5% to 0%. The change is expected to save households around £45 a year and will be funded by cancelling the Digital ID programme.
The Independent · about 7 hours ago
In the UK, the government announced an £850 million tax cut on energy bills, making electricity bills VAT free from 1 October 2026 in England, Scotland and Wales. Northern Ireland remains exempt because EU VAT rates apply under the Windsor Framework, preventing the cut from applying there.
BBC · about 12 hours ago
UK VAT will be cut from household electricity bills from 1 October, reducing the rate from 5% to zero and saving households about £45 a year. The cut is funded by savings from scrapping the digital ID programme and will apply to England, Scotland and Wales, with equivalent funding for Northern Ireland.
The Independent · about 12 hours ago
UK households will see 5% VAT removed from electricity bills from 1 October 2026, a move announced by Prime Minister Andy Burnham. The change is expected to save about £45 on a typical annual bill, though a projected 3.1% rise in the price cap may offset the benefit.
Yahoo News Canada · about 16 hours ago
The United Kingdom will see VAT on household electricity removed from 5% to 0% on 1 October, saving typical homes around £45 a year.
Law360 · about 16 hours ago
UK court rules that Staffing Co cannot recover input VAT because its director knew or should have known its supply chain was compromised by fraud. The decision underscores the importance of due diligence in supply chain management for VAT recovery.
Key Takeaways
£657, effective from 1 May 2026.
From the start of the next prescribed accounting period beginning on or after 1 May 2026.
Determine the CO2 band based on engine size: ≤1400cc → 140g band, 1401‑2000cc → 175g band, >2000cc → 225g band, then apply the appropriate charge.
£574, effective from 1 May 2026.
Primary source
Read the full article at ExpressThis summary was published on VATfaqs.com on 3 May 2026. It relates to VAT developments in United Kingdom. The original source is Express.
