The UK government has introduced a new VAT road fuel charge regime effective from 1 May 2026, applying to all VAT‑registered businesses that reclaim VAT on fuel used for private company car use. The charges vary by vehicle CO2 emissions and accounting period, with rates ranging from £54 to £190 per month or £657 to £2,297 per 12‑month period. Businesses must calculate the correct charge based on CO2 emissions or engine size if no CO2 figure is available.
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The Independent · about 6 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 8 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 13 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 13 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 17 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 17 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.
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Key Takeaways
£657 per 12‑month period.
Effective from 1 May 2026 until 30 April 2027.
Use engine‑size bands: ≤1400 cc = band 140, 1401‑2000 cc = band 175, >2000 cc = band 225.
£190 per month.
1) No VAT recovery; 2) Recover VAT only on business mileage; 3) Recover full VAT and pay the road fuel charge.
Primary source
Read the full article at iNewsThis summary was published on VATfaqs.com on 2 May 2026. It relates to VAT developments in United Kingdom. The original source is iNews.
