Can I claim an electric van as a business expense?

Yes. You claim an electric van like any other van: its price as an expense under the cash basis, or through the annual investment allowance. The 100% allowance for zero-emission vans covered spending before 6 April 2025 for Income Tax.

The rules below follow GOV.UK and HMRC's manuals as checked on 16 October 2026.

Three ways to claim an electric van

GOV.UK says vans are not cars for capital allowances, and its flat mileage rates cover goods vehicles such as vans. So you have the same three choices as for a diesel van.

HMRC's manual says that once you have deducted the van's cost, you cannot then switch it to the mileage rate. Once you use the mileage rate for a van, you keep it for as long as that van is in the business.

What happened to the 100% allowance for electric vans

For years, a new zero-emission van could get a 100% first-year allowance. HMRC's Capital Allowances Manual says the van had to be:

• unused and not second-hand
• designed mainly to carry goods
• unable to emit CO2 in any circumstances when driven
• registered for use on the road

That allowance applied to spending from 6 April 2010 and before 6 April 2025 for Income Tax. GOV.UK's guide now lists zero-emission goods vehicles under "If you bought it before April 2025". Hybrid vans did not qualify, because they can emit CO2.

For most sole traders this makes little difference. A van still qualifies for the annual investment allowance, which also gives the full cost in one year, and on the cash basis the price is an expense anyway. Do not confuse this with electric cars: GOV.UK says new zero-emission cars bought before April 2027 can still get the 100% first-year allowance, but a car is not a van.

Charging costs

If you claim actual costs, charging is a running cost, in the same way that GOV.UK lists fuel for a diesel van. If you use the flat mileage rate, HMRC's manual says the rate covers fuel and the other costs of running the vehicle, so charging is not claimed separately. Parking is still claimed on top.

Public chargers. Keep the receipts or app statements. If the van is also used privately, cut the total by the private share.

Charging at home. Your household electricity bill mixes the van with everything else. GOV.UK says you can only claim the business costs of something you use for both, and for home costs it says to find a reasonable method of dividing them. A charger that logs the kilowatt-hours for each session, multiplied by your tariff, gives you a figure you can show if asked.

The charge point itself. On the cash basis, equipment you keep for the business is an allowable expense. HMRC's manual says this still applies to equipment fixed to your property, unless the spending is on the building itself or things like a wall or floor. On traditional accounting, HMRC's manual says new charge-point equipment can get a 100% first-year allowance if bought by 5 April 2027 for Income Tax. If the charger also serves a family car, reduce either claim for that use.

Worked example

An electrician on the cash basis buys a new electric van for £36,000 in July 2026. They are not VAT registered and use the van 95% for business. In the first year their charger app logs £720 of home charging for the van. They also pay £540 at public chargers on business journeys and £1,800 for insurance and servicing. They drive 15,000 business miles.

Actual costs give a much bigger first-year claim here because the van is expensive. Selling the van later can bring part of that relief back, which our guide on selling your van explains. This is an example only. Your own figures will differ.

What this means for you

On the cash basis or with the annual investment allowance, you still get the full business share of an electric van's price off your profits in the year you buy it. What is different is the evidence: keep charging records that separate the van from your home, and decide between actual costs and the mileage rate before you file the first return that includes the van.

Steps to claim an electric van

1. Check your accounting method: the cash basis or traditional accounting.
2. Keep the purchase invoice, any finance agreement and the date you bought the van.
3. Set up charging records: charger logs for home sessions and receipts or app statements for public charging.
4. Start a mileage log so you can compare both methods and work out private use.
5. Compare actual costs with the flat rate for the first year and the years after, and pick one for this van.
6. Enter the claim in your tax return or Making Tax Digital (MTD) software for the year you bought the van.

For more on van claims, see claiming your van as a business expense. Use the free MTD check to see when Making Tax Digital starts for you, and the trades section for more guides.