Self employed capital allowances on a work van and mileage | AccountingWEB

Self employed capital allowances on a work van and mileage

Hi All

The question relates to claiming capital allowances as a self employed person v claiming mileage.

My understanding is that for example if a builder purchase a van for his business (although self employed) then the builder is entitled to claim his AIA of 100% up to the current years threshold on their tax return.

Am I correct in saying that the builder would then not be able to claim the 45p HMRC mileage rate, as this is meant to include depreciation etc and therefore capital allowances?

If so, what about the fuel rate that HMRC provide.  Could the builder continue to claim fuel at the prevailing rate, eg 15p or 18p depending on engine size and fuel type?  Or is this exclusively for company car users?

If the 45p is not allowed because of the CA use, i'm just trying to establish which is the most tax efficient way to do it!

So if the builder does say 45000 miles in the year, they could claim 10000 miles at 45p and 35000 at 25p, so that would go as an allowable deduction of £13250, whereas if the van only cost 8k, then the would only be getting tax relieve on £8000, so the mileage rate would be a better way to calculate it!

Can someone advise if my thinking is correct?

Many thanks

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Not quite right

Peter Kilvington |


andy.partridge |
andy.partridge's picture

Hi Andy/Peter

bazza79bc |


Peter Kilvington |

Great thanks, and yes, the

bazza79bc |