If you use your own vehicle for business you should take note of the following allowable expenses that can be used to reduce the amount of tax you pay.
The method for claiming the expense associated with the use of your own vehicle is simple. You need to record your business mileage each time you use the vehicle for business purposes and then multiply the total business mileage for the accounting year by the approved mileage rate.
The current HMRC approved mileage rates for cars and vans are as follows:
First 10,000 business miles – £0.45
Each business mile over 10,000 – £0.25
The mileage rates are fairly generous and incorporate an allowance for fuel and wear and tear of the vehicle.
The resulting expense is then fully claimable as a legitimate business expense.