Can I claim my car as a sole trader?

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Transcript

Can I claim my car as a sole trader? Yes, for business journeys. In 2026-27 you can claim 55p a mile for the first 10,000 business miles, or the business share of the actual costs plus capital allowances on the car's price. You choose one method per car. 55p a mile for the first 10,000 business miles and 25p a mile after that. GOV.UK gives the same rates for cars and vans, and the first rate was 45p before 6 April 2026. No. GOV.UK says that on the cash basis a car you buy for the business is claimed through capital allowances, unless you use the mileage rate for it. Vans and other vehicles are different and can be claimed as an expense. Not for the same car if you have claimed capital allowances on it. GOV.UK also says that once you use the flat rate for a vehicle, you must keep using it for as long as you use that vehicle in your business. Read the full answer, with every source, at rightotax.co.uk.

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Read the full answer, with every source

The one-minute version

Transcript

Can I claim my car as a sole trader? Yes, for business journeys. In 2026-27 you can claim 55p a mile for the first 10,000 business miles, or the business share of the actual costs plus capital allowances on the car's price. You choose one method per car. 55p a mile for the first 10,000 business miles and 25p a mile after that. GOV.UK gives the same rates for cars and vans, and the first rate was 45p before 6 April 2026. Read the full answer, with every source, at rightotax.co.uk.

Voice and visuals made with automated software, including AI.

This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.

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