Budget 2026 • Free calculator • Nothing stored

Fuel duty and van costs calculator: what the Budget adds

The Budget on 28 October 2026 announced that fuel duty rises from 52.95p to 60.59p a litre on 1 July 2027, and set road tax for 2027/28. Enter your miles, mpg and pump price to see the extra it costs you.

Duty plus VATThe duty rise is charged with 20% VAT on top, and we show both.
Real tax reliefActual-cost claimants get relief on the extra. Mileage-rate claimants don’t.
Part-year effectThe rise starts on 1 July, so only 280 days of the 2027/28 tax year are hit.
Example figures — replace with your own. Example figures are filled in so you can see how it works — replace them with your own before relying on the result shown.

1. Your driving

Business miles only, for one vehicle.

Your log or your best estimate.Enter 0 or more.
From the fuel gauge or your last few fill-ups. UK gallons.Enter 0 or more.
What you pay today with VAT, for example 150.0.Enter 0 or more.

2. How you claim

This decides how much tax relief the extra cost gets.

Only if you’re VAT-registered.

Show the maths

How we got your figure

We work from litres used, then add the duty rise with VAT, the part-year effect and the road tax change.

The step-by-step working will appear here.

Guide

What the fuel duty rise means for a van or car

Fuel duty on petrol and diesel is 52.95p a litre today, after a 5p cut that the Budget extended to 30 June 2027. From 1 July 2027 the announced rate is 60.59p, a rise of 7.64p a litre before VAT. VAT at 20% is charged on top of the duty, so the rise at the pump is about 9.17p a litre.

For a van doing 15,000 miles a year at 35 mpg, that’s around 1,950 litres, so roughly £179 for a full year at the new rate. Road tax for vans registered on or after 1 March 2001 goes from £360 to £375, and for cars first registered from April 2017 the standard rate goes from £200 to £210.

If you claim actual costs, the extra fuel and road tax is an allowable expense, so tax relief takes off part of it. If you use the flat mileage rate, you get no extra relief: the rate doesn’t move with fuel prices. If you’re VAT-registered you can normally reclaim the VAT on fuel for business use, so only the duty itself costs you. The figures here are for duty and VED only, and assume the pump price otherwise stays the same. Our guide what the Budget means for the self-employed puts this alongside the other changes.

Things people forget

Duty is announced, not lawThe 60.59p rate from 1 July 2027 and the road tax rates are announced and subject to legislation.
Pump prices move for other reasonsWe show only what the duty change adds. Wholesale oil prices and retailer margins can swamp it either way.
Mileage claimants get nothing extraThe 55p and 35p rates are flat. A duty rise comes out of your pocket with no extra relief.
Private useIf you use the van privately, only the business share of fuel and road tax can be claimed.
Red dieselDuty on red diesel for the few machines still allowed to use it rises separately. It’s not covered here.
EVs and vans are differentElectric vehicles have no fuel duty. Older cars have different road tax bands, which we leave out.

Frequently asked questions

What is fuel duty from 1 July 2027?

The Budget on 28 October 2026 announced that fuel duty on petrol and diesel will be 60.59p a litre from 1 July 2027. Until 30 June 2027 it stays at 52.95p, after the 5p cut was extended. This is subject to legislation.

How much more will I pay per litre?

The rise is 7.64p a litre before VAT. VAT at 20% is charged on the price including duty, so you pay about 9.17p more at the pump, if nothing else changes.

How much will road tax be for a van in 2027/28?

For vans registered on or after 1 March 2001 (the “all other vans” rate) the Budget announced £375 for 2027/28, up from £360 in 2026/27. Check GOV.UK for older, electric and Euro 4 or 5 vans, which have different rates.

What is road tax for a car in 2027/28?

The standard rate for cars first registered from 1 April 2017 is announced to rise from £200 to £210. Cars registered before then follow the older banded table.

Can I claim the extra fuel cost against my tax?

If you claim actual vehicle costs, yes: fuel and road tax for business use are allowable. If you use the simplified mileage rate, no, because the rate is a flat amount per mile that doesn’t depend on fuel prices.

Can I reclaim VAT on fuel?

If you’re VAT-registered you can usually reclaim the VAT on fuel used for business journeys, so only the duty rise costs you. If the vehicle has private use there are rules on how much you can reclaim, such as a fuel scale charge for cars.

Does the calculator predict pump prices?

No. It holds your current pump price flat and shows only the effect of the announced duty and road tax changes. Real prices also depend on wholesale costs and competition.

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Sources and review

Last checked: 28 October 2026. Every figure on this page was checked against GOV.UK and the Budget 2026 documents on that date by the HandySums team. Figures marked “announced” were announced on 28 October 2026 and are subject to legislation, so they can still change. We’ll update this page when the Finance Bill is published and whenever GOV.UK changes. HandySums is independent and not an accountancy firm — see how we check our sums.

Estimate only — not tax advice. This calculator estimates only the effect of the announced fuel duty change and 2027/28 road tax rates on one vehicle, using the miles, mpg and pump price you enter. It assumes the pump price is otherwise unchanged and that all the use is for business. It does not cover red diesel, electric or hybrid vehicles, older car road tax bands or private use. The 2027/28 figures are announced and subject to legislation. Your actual bill depends on your full Self Assessment. Verify with HMRC or a qualified accountant. The figures you enter stay in your browser and are not stored.