Expenses if you're self-employed

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Car, van and travel expenses

You can claim allowable business expenses for costs such as:

  • vehicle insurance
  • repairs and servicing
  • fuel
  • parking
  • hire charges
  • vehicle tax licence fees
  • breakdown cover
  • train, bus, tram, air and taxi fares
  • hotel rooms
  • meals on overnight business trips

You cannot claim for:

  • non-business driving or travel costs
  • fines or penalty charges
  • travel between home and work

You may be able to calculate your car, van or motorcycle expenses using a flat rate (known as simplified expenses) for mileage instead of the actual costs of buying and running your vehicle.

If you’re not sure whether a business cost is an allowable expense contact HM Revenue and Customs (HMRC).

Buying vehicles

If you use traditional accounting and buy a vehicle for your business, you can claim capital allowances on the cost of the purchase.

If you use cash basis accounting and buy a car for your business, claim the cost as a capital allowance as long as you’re not using simplified expenses.

For all other types of vehicle, claim the cost as allowable expenses.

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