Using a van for self-employed work can create a significant business expense, particularly for tradespeople, couriers, mobile service providers and other businesses that travel regularly.
Fortunately, many of the costs associated with buying, running and maintaining a van may be deductible when calculating taxable business profits.
For the 2026/27 tax year, self-employed people using simplified vehicle expenses can claim 55p per business mile for the first 10,000 miles and 25p per mile after that for cars and goods vehicles.
Alternatively, eligible businesses can calculate their claim using actual allowable vehicle costs.
The amount that can be claimed therefore depends on business mileage, vehicle costs, private use, accounting method and how the van was purchased.
Last Updated: 23.09.2026
How Much Can You Claim for a Van When Self-Employed?
There is no single maximum amount that every self-employed person can claim for a van. The amount depends mainly on whether the business uses the simplified mileage method or calculates its actual van expenses.
Under simplified expenses, the claim is calculated according to business mileage. Under the actual cost method, allowable running costs are calculated and any private-use element is removed.
A self-employed worker using a van entirely for qualifying business purposes may therefore be able to deduct a substantial proportion of their annual vehicle costs.
2026/27 Van Mileage Rates
The simplified mileage rates for cars and goods vehicles changed from 6 April 2026.
| Business Mileage | 2026/27 Rate | Rate Before 6 April 2026 |
| First 10,000 Miles | 55p Per Mile | 45p Per Mile |
| Above 10,000 Miles | 25p Per Mile | 25p Per Mile |
This means someone travelling exactly 10,000 qualifying business miles during 2026/27 could calculate a simplified vehicle expense of £5,500.
The mileage rate is intended to cover vehicle costs such as fuel, insurance, repairs and servicing. These costs cannot normally be claimed separately for the same vehicle when simplified mileage is being used.
Van Mileage Claim Examples
A self-employed electrician who drives 8,000 qualifying business miles could calculate:
8,000 × £0.55 = £4,400
A tradesperson travelling 12,000 business miles could calculate:
10,000 × £0.55 = £5,500
2,000 × £0.25 = £500
Total Allowable Mileage Expense = £6,000
Only qualifying business mileage should be included in these calculations.
What Van Expenses Can Self-Employed Workers Claim?
Self-employed workers using actual costs instead of simplified vehicle expenses may be able to deduct several costs associated with operating their van.
These can include:
- Fuel used for qualifying business journeys
- Insurance relating to business use of the vehicle
- Repairs And Servicing required to maintain the van
- Vehicle Tax paid for the van
- MOT Costs relating to the vehicle
- Breakdown Cover used for the business vehicle
- Parking incurred during qualifying business journeys
- Van Hire And Leasing Costs relating to business activity
If the van is also used privately, only the business proportion of applicable costs should generally be claimed.
Fines, penalties and private driving costs are not allowable business expenses.
Should You Use Simplified Mileage or Actual Van Expenses?
Self-employed businesses should understand the difference between the two methods before choosing how vehicle expenses are calculated.
Simplified Mileage Method
Simplified expenses use a fixed mileage rate instead of calculating most individual vehicle costs.
For 2026/27, cars and goods vehicles use:
- 55p Per Mile for the first 10,000 qualifying business miles
- 25p Per Mile for each qualifying mile above 10,000
This method can make record keeping easier because the business mainly needs reliable evidence of business mileage.
Once simplified mileage has been used for a particular vehicle, the business normally needs to continue using that method for the vehicle while it remains in the business.
Actual Cost Method
The actual cost method records the real costs of running the van.
For example, a sole trader could have:
| Expense | Annual Cost |
| Fuel | £4,000 |
| Insurance | £900 |
| Repairs And Servicing | £1,200 |
| Vehicle Tax | £350 |
| Breakdown Cover | £150 |
| Total | £6,600 |
If the van is used 80% for business and 20% privately, the business-use calculation would be:
£6,600 × 80% = £5,280
The precise tax treatment of purchasing the van itself depends on the accounting method and other circumstances.
Which Method Could Give You a Higher Deduction?
Neither method automatically produces the largest claim.
Simplified mileage can be attractive where the van has relatively low running costs but covers substantial business mileage.
Actual expenses may be more beneficial when operating costs are high due to fuel consumption, repairs, insurance or other expenses.
Self-employed workers should compare both methods before deciding, provided they remain eligible to choose between them.
How Much Can You Claim Based on Your Business Mileage?
The following examples show how simplified mileage claims work during the 2026/27 tax year.
| Business Miles | 2026/27 Allowable Mileage Claim |
| 1,000 | £550 |
| 5,000 | £2,750 |
| 10,000 | £5,500 |
| 12,000 | £6,000 |
| 15,000 | £6,750 |
| 20,000 | £8,000 |
The lower 25p rate applies only to mileage above the first 10,000 qualifying miles.
For example, 20,000 business miles would result in:
10,000 × 55p = £5,500
10,000 × 25p = £2,500
Total = £8,000
Does Claiming Van Expenses Mean HMRC Pays You That Amount?
An expense claim is not normally a cash payment from HMRC.
Instead, allowable van expenses generally reduce the taxable profit generated by the business.
For example, imagine a sole trader has:
Business Income: £45,000
Allowable Business Expenses Before Van Costs: £10,000
Allowable Van Expenses: £5,500
The profit before including van expenses would be £35,000. After deducting £5,500 of allowable van expenses, taxable business profit would fall to £29,500, before considering other applicable tax calculations and allowances.
How Van Expenses Reduce Your Taxable Profit?
The eventual tax saving depends on the individual’s income, tax band, National Insurance position and other circumstances.
For 2026/27, self-employed Class 4 National Insurance is generally charged at 6% on profits between £12,570 and £50,270, with a 2% rate above the upper limit.
Income Tax rates can also affect how valuable an allowable expense is.
Example of the Potential Tax Saving
Consider an eligible self-employed person in England, Wales or Northern Ireland whose £1,000 expense deduction reduces profits that would otherwise be subject to both the 20% basic Income Tax rate and 6% Class 4 National Insurance.
The potential reduction could be approximately:
£1,000 × 20% = £200 Income Tax
£1,000 × 6% = £60 Class 4 National Insurance
That could produce an approximate combined reduction of £260.
This is only an illustrative example. Actual savings depend on taxable income, allowances and individual circumstances. Scottish Income Tax rates also differ.
Can You Claim the Cost of Buying a Van?
A van purchased specifically for business can potentially qualify for tax relief, but the way the cost is dealt with depends heavily on the accounting method used.
Claiming a Van Under the Cash Basis
Cash basis has been the default accounting method for many eligible self-employed businesses since the 2024/25 tax year.
Under cash basis, business equipment other than cars is generally treated as an allowable expense when the relevant payment is made.
A qualifying van can therefore normally be treated differently from a business car.
Private use must still be taken into account. A van used partly for personal purposes should generally have the claim restricted to reflect its business use.
Claiming Capital Allowances Under Traditional Accounting
Self-employed businesses that use traditional accounting generally deal with the purchase of business vehicles through capital allowances rather than simply recording the entire purchase as a normal running expense.
Vans can normally qualify as plant and machinery.
The exact amount available depends on the type of vehicle, the relief being used and whether there is private use.
Annual Investment Allowance for Vans
The Annual Investment Allowance, or AIA, can provide a 100% deduction for qualifying plant and machinery up to the available annual limit.
The AIA limit remains £1 million.
Business cars do not qualify for AIA, making the correct classification of the vehicle important.
For a sole trader using a qualifying £30,000 van entirely for business purposes under traditional accounting, AIA could potentially allow the full £30,000 qualifying cost to be deducted when calculating taxable profits, subject to the relevant conditions and available allowance.
What Are the 2026 Capital Allowance Rules for Vans?
Capital allowance treatment is particularly relevant to self-employed businesses using traditional accounting.
Qualifying vans can normally be treated as plant and machinery. A business may use AIA where available rather than spreading relief over several years.
There is also a 40% first-year allowance for qualifying new and unused main-rate plant and machinery expenditure incurred from 1 January 2026. Conditions and exclusions apply, so AIA may still be the more straightforward relief where it is available.
Writing Down Allowance Changes for 2026/27
The main writing-down allowance rate decreased from 18% to 14% from 6 April 2026 for businesses subject to Income Tax.
Writing-down allowances may be relevant when qualifying expenditure has not already received full relief through AIA or another applicable allowance.
Where an accounting period overlaps the date of the rate change, a hybrid writing-down allowance rate can apply.
New Vans vs Used Vans
Both new and second-hand qualifying vans can potentially receive tax relief.
AIA can generally apply to qualifying new or used plant and machinery.
However, some first-year allowances have stricter requirements. For example, the 40% first-year allowance introduced for qualifying expenditure from 1 January 2026 generally applies to qualifying new and unused main-rate plant and machinery.
This distinction can matter when comparing the tax treatment of buying a brand-new van with purchasing a used vehicle.
Can You Claim for a Van Used for Both Business and Personal Travel?
A van does not always need to be exclusively used for business, but private use can affect the amount claimed.
Imagine annual qualifying van running costs total £8,000 and the vehicle is used:
75% for business
25% privately
The allowable proportion may therefore be:
£8,000 × 75% = £6,000
The remaining £2,000 relates to private use and would not normally be deductible.
Calculating the Business-Use Percentage
Mileage records are one of the simplest ways to demonstrate how the vehicle is divided between business and private use.
For example:
Total Annual Mileage: 20,000 Miles
Business Mileage: 15,000 Miles
The business-use percentage would be:
15,000 ÷ 20,000 × 100 = 75%
Accurate records make it easier to support this calculation if HMRC asks how the business proportion was determined.
What Counts as Business Mileage?
Business mileage may include journeys directly connected with carrying out the trade, such as:
- Travelling To Customers to provide services
- Visiting Suppliers to collect business materials
- Travelling Between Jobs during the working day
- Visiting Temporary Work Locations where the journey qualifies as business travel
- Making Business Deliveries to customers
- Travelling To Business Meetings away from the normal workplace
The purpose of each journey matters.
What Journeys Cannot Be Claimed?
Private trips cannot be included simply because the same van is also used for work.
Examples can include:
- Personal Shopping Trips
- Family Journeys
- Holidays And Leisure Travel
- Other Private Mileage
- Routine Home-To-Work Travel Where It Does Not Qualify As Business Travel
Fines and penalty charges are also excluded from allowable travel expenses.
Does Travelling From Home Count as Business Mileage?
Not every journey beginning at home automatically qualifies.
Ordinary travel between home and a regular place of work is generally treated differently from genuine business journeys.
A self-employed tradesperson travelling from one customer job to another, for example, may have qualifying business mileage. A journey to a temporary location may also have different treatment from a routine trip to a permanent business base.
This can become more complicated for businesses operated from home, mobile businesses and itinerant tradespeople.
The underlying purpose and circumstances of the journey should therefore be considered rather than assuming every journey starting from home is deductible.
Does a Double-Cab Pickup Count as a Van in 2026?
The tax treatment of double-cab pickups changed significantly in 2025.
Previously, the one-tonne payload test was widely used when determining whether a double-cab pickup should be treated as a van.
For relevant Income Tax purposes, HMRC changed its approach from 6 April 2025. The vehicle’s construction and primary suitability now need to be considered.
Where a double-cab pickup is equally suitable for transporting passengers and goods and neither purpose clearly predominates, it will generally be treated as a car rather than a van for the affected tax rules.
Income Tax And Capital Allowance Treatment
For expenditure incurred from 6 April 2025 for Income Tax purposes, double-cab pickups are no longer automatically excluded from being treated as cars simply because they have a payload of one tonne or more.
This makes vehicle classification particularly important when deciding whether AIA and other reliefs available to vans can be claimed.
VAT Treatment for Double-Cab Pickups
The VAT rules are different.
The existing one-tonne payload test remains relevant for VAT purposes. This means a double-cab pickup could potentially have different classifications depending on which tax rule is being considered.
Self-employed businesses buying an expensive pickup should therefore avoid assuming the Income Tax and VAT classifications are identical.
Can You Claim VAT on a Van?
VAT-registered businesses may be able to recover VAT relating to a van where the normal VAT conditions are satisfied.
The amount that can be reclaimed depends on the purchase, business use and whether the expense carries VAT.
VAT on Buying a Van
Where a VAT-registered business buys a qualifying van from a VAT-registered seller and receives a valid VAT invoice, input VAT may potentially be recoverable to the extent permitted by the VAT rules.
Used vans require particular attention because the VAT treatment can depend on how the seller sells the vehicle.
A buyer should therefore check whether VAT has actually been charged rather than assuming that every second-hand van purchase includes recoverable VAT.
VAT on Running Costs
VAT may also be recoverable on qualifying business expenses associated with the vehicle.
These can include VAT on eligible:
- Repairs
- Servicing
- Maintenance
- Parts
- Fuel
- Other Qualifying Motoring Costs
Normal VAT evidence and record-keeping requirements apply.
VAT on Mixed Business And Personal Use
Fuel can require special treatment when the van is used for both business and private journeys.
Depending on the circumstances, a VAT-registered business may choose to reclaim only the VAT relating to business fuel or reclaim VAT more widely and account for the appropriate fuel scale charge.
Detailed mileage records can be particularly useful where VAT is reclaimed according to actual business journeys.
Can You Claim Van Leasing and Finance Payments?
Buying a van outright is not the only option available to a self-employed business. Vans are frequently leased, financed or acquired through hire purchase.
The precise deduction depends on the agreement and accounting method.
Van Leasing
Qualifying business van hire or lease payments can normally be included as business expenses to the extent that they relate to the trade.
Where the van is partly used privately, the deductible amount should generally reflect the business proportion.
For example, if annual qualifying lease payments total £6,000 and business use is 80%, the business-related amount could be:
£6,000 × 80% = £4,800
Hire Purchase
Hire purchase arrangements should not automatically be treated in exactly the same way as ordinary rental payments.
Depending on the accounting method and arrangement, the acquisition cost may be dealt with under the rules applying to the purchase of the vehicle while finance charges may receive separate treatment.
The classification of the vehicle as a van or car can also affect the available relief.
Van Finance Interest
Interest and qualifying finance charges associated with borrowing for business purposes can potentially be deductible.
However, repayments of borrowed capital and interest charges should not simply be treated as the same expense. Good records should separate the vehicle purchase cost, capital repayments, interest and other finance charges.
Can You Claim Van Expenses If You Use the £1,000 Trading Allowance?
A self-employed person cannot generally claim the £1,000 trading allowance and individual business expenses against the same trading income.
Someone whose eligible actual business expenses are substantially more than £1,000 may therefore find it more beneficial to calculate and claim allowable expenses instead.
For example, a courier earning more than £1,000 but spending £4,000 on qualifying business costs would need to compare using the trading allowance with calculating taxable profit after actual allowable expenses.
The trading allowance should not simply be added on top of mileage, van costs and other allowable expenses.
What Happens When You Sell a Business Van?
Selling a van can have tax consequences, particularly where tax relief was previously obtained on the purchase.
Under capital allowance rules, the sale proceeds may need to be taken into account when calculating the value remaining in the relevant capital allowance pool.
Where AIA or another allowance previously provided substantial tax relief, disposal calculations can potentially create an adjustment or balancing charge.
The treatment may differ under cash basis accounting, so businesses should consider both how the vehicle was originally treated and the accounting method in use when it is sold.
VAT-registered businesses may also need to consider whether VAT must be accounted for on the sale.
What Records Should You Keep for Van Expense Claims?
Records are important because HMRC may ask a self-employed person to demonstrate that expenses relate to the business.
Useful records include:
- Mileage Records showing the date, journey, business purpose and distance
- Fuel Receipts supporting vehicle expenditure
- Repair And Maintenance Invoices showing amounts paid
- Insurance Documents relating to the van
- Purchase Or Finance Agreements showing how the vehicle was acquired
- VAT Invoices supporting VAT recovery where applicable
Self-employed businesses generally need to keep their records for at least five years after the 31 January Self Assessment submission deadline for the relevant tax year.
Digital mileage logs can make record keeping easier for businesses covering large numbers of journeys.
How Do You Claim Van Expenses on Your Self Assessment?
Van expenses form part of the calculation of taxable self-employed profits.
A business should first determine which allowable method applies and calculate the appropriate vehicle deduction.
For actual expenses, qualifying costs should be totalled and adjusted for any private use.
For simplified mileage, the business should calculate qualifying mileage using the relevant rate.
For 2026/27, that means:
- First 10,000 Miles: 55p Per Mile
- Additional Miles: 25p Per Mile
The resulting allowable expenses form part of the business expense information used when completing the Self Assessment return.
Receipts and mileage records are not normally sent with the tax return, but they should be retained as supporting evidence.
Conclusion
So, how much can a self-employed person claim for a van in 2026? There is no single figure because the answer depends on mileage, actual operating costs, private use, the accounting method and how the vehicle was acquired.
For 2026/27, simplified expenses allow 55p per mile for the first 10,000 qualifying business miles and 25p thereafter. This means 10,000 business miles could produce a £5,500 vehicle expense, while 20,000 miles could produce an £8,000 expense.
Those with expensive vans or high running costs may want to compare simplified mileage with actual expenses.
Cash basis users should also understand that qualifying vans are normally treated differently from cars, while businesses using traditional accounting may be able to use capital allowances such as AIA.
Accurate mileage, expense and private-use records remain essential for supporting any claim.
FAQs
How Much Can I Claim Per Mile for My Van in 2026?
For the 2026/27 tax year, eligible self-employed businesses using simplified expenses can claim 55p per business mile for the first 10,000 miles and 25p per mile thereafter for cars and goods vehicles.
Can I Claim 100% of My Van If I Am Self-Employed?
Potentially, where the van is used entirely for qualifying business purposes and the relevant tax rules allow the expenditure. If there is private use, the claim may need to be restricted to the business proportion.
Can I Claim Fuel and Mileage at the Same Time?
Not normally for the same vehicle when using simplified mileage. The mileage rate is designed to cover costs such as fuel and other vehicle running expenses. Claiming the fuel separately as well could result in claiming the same cost twice.
Can I Claim a Van I Bought Before Becoming Self-Employed?
Potential tax relief may still be available in some circumstances when an existing personally owned vehicle is introduced into a business.
The treatment depends on the accounting method, vehicle classification, value and circumstances under which it became a business asset.
Can I Claim Van Insurance as a Business Expense?
Yes. The qualifying business proportion of van insurance can generally be included when calculating actual vehicle expenses. If simplified mileage is used, insurance is already covered by the mileage calculation and should not normally be claimed separately.
Can I Claim Repairs and MOT Costs?
Repairs and servicing relating to a business van can generally qualify when actual vehicle costs are being claimed. MOT-related expenditure may also form part of qualifying vehicle running costs. Private-use restrictions may apply.
Can I Claim for a Second-Hand Van?
Yes. A used van can potentially qualify for business tax relief.
Under traditional accounting, qualifying second-hand vans can potentially qualify for AIA, while cash basis businesses generally treat qualifying vans under the cash basis expense rules. Some first-year allowances specifically require assets to be new and unused.
Can I Claim VAT on a Van Used Personally?
A VAT-registered business may potentially recover VAT relating to the business use of a van, subject to the normal VAT rules. Private use can affect the amount recoverable or require an adjustment, so adequate business and private-use records should be maintained.
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