If you’re self-employed, your business travel could be worth far more than just fuel costs.  

Many business owners unknowingly miss out on legitimate tax relief simply because they aren’t aware of everything they can claim. 

Here’s a quick guide to help you make sure you’re not one of them.

🚘 What Travel & Vehicle Costs Can You Claim?
If the expense is wholly and exclusively for business purposes, you may be able to claim for: 
✅ Vehicle insurance 
✅ Repairs and servicing 
✅ Fuel costs 
✅ Parking fees 
✅ Vehicle hire charges 
✅ Vehicle tax and licence fees 
✅ Breakdown cover 
✅ Train, bus, tram, air and taxi fares 
✅ Hotel accommodation for business trips 
✅ Meals during overnight business travel 

❌ What Can’t Be Claimed? 
Unfortunately, not every journey qualifies.
You cannot claim for: 
❌ Personal travel costs 
❌ Commuting between your home and a permanent workplace 
❌ Fines and penalty charges 
❌ Any non-business travel expenses 

📊 Mileage Allowance or Actual Costs? 
When claiming vehicle expenses, you generally have two options: 
🔹 Claim the actual running costs of your vehicle 
🔹 Use HMRC’s simplified expenses method, which applies a flat-rate mileage allowance 

Choosing the right method can make a significant difference, so it’s important to understand which option is most beneficial for your circumstances. 

🚙 Purchased a Vehicle for Your Business? 
The tax treatment depends on your accounting method. Under traditional accounting, you may be able to claim capital allowances on the vehicle cost. If you use the cash basis, capital allowances can still be available, provided you’re not using simplified expenses for that vehicle. 

💡 Perrigo Perspective
Travel expenses are one of the most misunderstood areas of self-employed tax claims. While many business owners focus on fuel costs, there are often a range of additional allowable expenses that can be overlooked. 
Keeping accurate records and understanding the distinction between business and personal travel is essential. Reviewing your claims regularly can help ensure you’re maximising legitimate tax relief while remaining fully compliant with HMRC requirements. 

📞 Need Help Reviewing Your Expenses?
Our team can help you identify allowable costs, choose the most tax-efficient claiming method, and ensure your records are HMRC compliant.

Not sure if you’re claiming everything you’re entitled to? We’d be happy to review your current approach and explain whether there are opportunities to reduce your tax bill. Why not give us a call on 01229 488860, or pop into our next drop-in session on Thursday 30th July? Our Drop In Session is a great opportunity to ask confidential questions, get tailored advice, and make sure you’re claiming everything you’re entitled to.
We’d love to see you there and you can book your place here.

Internet Link – Expenses if you’re self-employed: Car, van and travel expenses – GOV.UK