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Travel and Vehicle Expenses for Self-Employed

Using your private car for work

If you’re self employed and use your private car for work, there are a number of allowable expenses that you can claim in order to reduce your tax liability.

To help quantify business versus personal use, it’s advisable to keep a record of any business related travel. Your accountant will be able to assist with apportioning the appropriate amount of your vehicle expenses to ensure that you don’t over or under claim.

Company cars for self-employed

In basic terms, if you are a self-employed sole trader, you cannot ‘claim’ a company car. This is because, legally, there is no difference between you and your business.

However, if you use a car purely as a ‘work vehicle’, you may be able to claim capital allowances for that vehicle.

What vehicle and travel costs can you claim as an Allowable Business Expense?

Allowable business expenses include;

• Vehicle insurance
• Repairs and services
• Fuel (business mileage)
• Parking
• Vehicle licence fees (road tax)
• Breakdown cover

Additionally, you can also claim for the following travel costs;

• Hire charges
• Train, bus, air and taxi fares
• Hotel rooms
• Meals and overnight business trips

You cannot claim for non-business driving or travel costs, fines, or travel between work and home.

If you’re not sure whether an expense is an allowable business expense, you should contact your accountant for clarification.

We hope that you’ve found this article helpful. If you require any  assistance with your self-assessment tax return, please get in touch. Our experienced team would be happy to help.

Find out more about allowable business expenses for self-employed