How Much Can I Claim for My Van Self-Employed

How much can I claim for my van self-employed in the UK? Learn the tax rules for mileage, running costs and capital allowances.

If you are self-employed and use a van for your work, the good news is that you can claim a range of costs against your taxable profits. Whether you use the van every day or just occasionally, HMRC allows you to deduct either a fixed mileage rate or your actual running costs. You may also be eligible for capital allowances if you have bought the van outright.

However, the amount you can claim depends on how you use the van, whether it is solely for business, and how you choose to calculate your expenses. This article explains the rules in detail so you can maximise your tax deductions while staying compliant with HMRC.

Two Ways to Claim Van Expenses

HMRC offers two methods for self-employed individuals to claim tax relief on vehicle use:

  1. Simplified expenses using a flat mileage rate

  2. Actual costs method, including fuel, insurance, maintenance, and depreciation

You must choose one method and stick with it for the lifetime of the vehicle unless circumstances change significantly. You cannot switch back and forth year to year.

Method 1: Claiming Using Mileage (Simplified Expenses)

If you use your own van for work, you can use HMRC’s simplified mileage rates. These are designed to make record-keeping easier and to avoid having to track every individual cost.

For vans and cars, HMRC allows you to claim:

  • 45p per mile for the first 10,000 business miles per tax year

  • 25p per mile for any additional miles beyond 10,000

This rate is intended to cover the cost of fuel, insurance, repairs, servicing, MOT, and depreciation. You cannot claim any separate vehicle running costs if you use the mileage method.

To use this method, the van must be:

  • Owned or leased personally (not by a limited company)

  • Used for business journeys (not commuting or personal use)

You must also keep a detailed mileage log that includes:

  • The date of each journey

  • Where you travelled from and to

  • The reason for the journey

  • The number of business miles travelled

This method is often most suitable for those who drive moderate business mileage or who want to avoid the complexity of tracking every van-related expense.

Method 2: Claiming Actual Running Costs

If you prefer to claim the actual costs of running your van, you can deduct the following from your taxable income:

  • Fuel

  • Insurance

  • Road tax

  • Servicing and repairs

  • MOT and routine maintenance

  • Breakdown cover

  • Parking and tolls for business journeys

  • Lease or hire costs (if applicable)

  • Interest on finance used to purchase the van

This method gives you a more tailored deduction based on your actual usage, but it comes with a few key rules.

If the van is used partly for personal purposes, you must apportion the costs fairly. For example, if you estimate that the van is used 80% for business and 20% for personal use, you can only claim 80% of the total eligible expenses.

You must also keep:

  • All receipts and invoices

  • Detailed records of personal versus business use

  • A logbook or diary to justify the apportionment

This method is often better suited for those who drive high mileage or who have vans used almost entirely for work.

Claiming Capital Allowances for the Van Itself

If you buy a van outright or on hire purchase, you cannot deduct the full cost in one go unless you qualify for capital allowances. These allow you to claim tax relief on the purchase price of the van over time, reflecting its decline in value.

For most self-employed people, you can claim:

  • Annual Investment Allowance (AIA), which allows 100% of the cost to be deducted in the year of purchase (up to the AIA limit)

  • If you exceed the AIA limit or choose not to claim it, you can use writing down allowances at 18% per year

You must reduce the amount claimed if the van is also used for personal journeys. For example, if a van costing £20,000 is used 90% for business, only £18,000 would qualify for capital allowances.

Note that cars do not qualify for AIA in most cases, but vans do, because they are classed as plant and machinery rather than passenger vehicles.

What About Leasing or Hiring a Van?

If you lease or hire a van instead of buying it, you can claim the lease payments as allowable expenses, again adjusted for personal use if applicable.

Short-term rental costs, such as hiring a van for a one-off job or delivery run, are also allowable as long as the use is purely for business.

For hire purchase agreements, you can claim the interest element as a revenue expense and the van itself through capital allowances.

Are VAT Costs Recoverable?

If you are VAT registered and use your van exclusively for business, you can reclaim the VAT on:

  • The purchase price of the van

  • Running costs such as fuel, insurance, and maintenance

  • Accessories and modifications (e.g. roof racks or internal racking)

If the van is used for both business and private purposes, you can reclaim only the business-use portion of the VAT.

You must retain VAT invoices and keep clear records showing how you calculated the percentage of business use.

Additional Van-Related Expenses You Can Claim

Depending on how you use your van, you may also be able to claim:

  • Parking charges and congestion zone fees (business use only)

  • Tools and equipment stored in the van

  • Security devices or van tracking systems

  • Specialist modifications for your trade

These items must be used solely for business and not for private benefit.

Example: Claiming Using Each Method

Let’s say you drive 12,000 business miles in a tax year using your own van.

Mileage method:

  • 10,000 miles x 45p = £4,500

  • 2,000 miles x 25p = £500

  • Total claim = £5,000

Actual costs method (assuming you kept receipts):

  • Fuel: £3,800

  • Insurance: £800

  • Servicing and repairs: £600

  • Road tax: £300

  • MOT and breakdown cover: £250

  • Total running costs: £5,750

  • If used 90% for business: £5,175 allowable

In this case, the actual cost method offers a higher deduction, but it requires more admin and careful record-keeping.

Summary: How Much Can I Claim for My Van Self-Employed?

As a self-employed person, the amount you can claim for your van depends on how you use it and which method you choose. HMRC allows you to:

  • Use simplified mileage rates for ease

  • Claim actual running costs with supporting records

  • Deduct capital allowances if you purchase the van

  • Reclaim VAT where applicable

For vans used purely or mostly for business, the potential tax savings can be significant. The key is to keep detailed records and choose the method that gives you the best balance of simplicity and value.

Before making a large purchase or switching expense methods, it is worth discussing your situation with an accountant to ensure you stay compliant and make the most of your allowances.