Can I claim my van as a business expense?

Yes. A self-employed tradesperson can claim a van either with the flat mileage rate, 55p a mile for the first 10,000 business miles in 2026-27, or with actual costs plus the van's price.

For most trades the van is the biggest cost after materials, so how you claim it is worth getting right. You pick one method per van, and the choice sticks. The rules below follow GOV.UK as checked on 16 October 2026.

Method 1: the flat mileage rate

You keep a log of business miles and claim a set amount per mile. It replaces fuel, insurance, repairs, servicing, road tax and the cost of the van itself.

Parking and other travel, such as train fares, can be claimed on top. Fines cannot.

Method 2: actual costs

You claim the business share of what the van really costs: fuel, insurance, repairs and servicing, road tax, breakdown cover and hire charges. You also claim the price of the van.

How you claim the price depends on your accounting method. From 2024-25 the cash basis is the default for sole traders. Under the cash basis, GOV.UK says a van is claimed as an allowable expense. Under traditional accounting, you claim capital allowances, and the annual investment allowance lets you deduct the full cost in the year you buy it, up to £1 million. Cars are treated differently, so these rules are for vans and other goods vehicles.

If you use the van privately, you reduce every claim by the private share. If you sell the van later, you may need to pay tax on the sale, because you have already had relief on the cost.

The switching rules

This is where people go wrong.

• You cannot use the mileage rate for a van you have already claimed capital allowances on, or included as an expense.
• Once you use the mileage rate for a van, you must keep using it for as long as you use that van in your business.
• You can use different methods for different vehicles.

So the choice is really made when you buy the van, and it lasts until you replace it.

Worked example

A roofer buys a second-hand van for £15,000 in May 2026. Running costs are £4,000 a year. They drive 12,000 business miles a year and use the van 90% for business. They use the cash basis.

At 2026-27 rates, actual costs give more relief in this case, mostly in the first year. A cheaper van, higher mileage or low running costs can tip it the other way. Rates for later years may change, and selling the van may mean tax to pay under the actual-costs method. This is an example only. Your own figures will differ.

What this means for you

The mileage rate is simple: log the miles and you are done. Actual costs suit an expensive van, a newer van or one that does fewer miles, and they put the biggest claim in the year you buy. Because you cannot switch for the same van, compare both methods before you file the first return that includes it.

Under Making Tax Digital (MTD), the record-keeping differs. With the mileage rate you do not need digital records of the van's actual costs, as long as you are sure you will use it; you keep a mileage log and make the adjustment at the year end. With actual costs, every fuel receipt and bill becomes a digital record.

Steps to claim your van

1. Start a mileage log now: date, journey, purpose and business miles. Your phone or a notebook will do.
2. Keep every van receipt until you have decided which method to use.
3. Work out your private use honestly. GOV.UK says travel between home and work is not a business cost.
4. Compare both methods for the year you bought the van, and for the years after.
5. Pick one and record it. For a mileage claim, multiply the miles by the rates above; for actual costs, total the bills and the van price and take off the private share.
6. Put the figure in the car, van and travel expenses box of your tax return, or in your MTD software.

Use the free MTD check to see when MTD starts for you, and the trades section for more guides on running a trade.