claim tax back on van

How to Claim Tax Back on Van?

01/03/2024tax , Tax Issues , Tax News and Tips , Tax Saving Tips , Taxation

Are you worried about how to claim tax back on the van? A van tax back is a scheme in the United Kingdom that allows businesses to claim relief on a variety of expenses. Such as insurance costs, business mileage, and capital allowances. In this discussion, we’ll explore the eligibility requirements for van tax back. Also the tips for maximising van tax back, and the benefits and drawbacks of this valuable scheme for UK businesses.

We’ll also outline the steps to claim van tax back and the potential for tax code updates, tax returns, limited van options, capital allowance limits, and maintenance. Overall, this discussion will provide you with a comprehensive understanding of van tax back and how you can maximise its benefits for your business.


Talk to one of our intelligent and clever professionals to get your further queries about claiming tax back on the van. We will ensure to come up with the best possible solution.


Understanding Van Tax Back

Van tax back is a tax benefit that allows businesses and individuals to claim tax relief on the cost of purchasing and maintaining a van. Which is then used for business purposes. The van must be used for a minimum of 28 days per year for business purposes. The tax relief can be claimed on several expenses related to the van, including:

Capital allowances

This is the cost of the van itself, and the amount you can claim depends on the value and type of van you purchased.

Business mileage

If the van is used primarily for business purposes, you can claim all your business mileage expenses. Including fuel, repairs, maintenance, servicing, insurance, and road tax.

Interest payments

If the van was financed, you may be able to claim the interest payments as a tax-deductible expense.


Eligibility Requirements for Van Tax Back

To claim van tax back in the UK, certain eligibility requirements must be met. The requirements are as follows:

  1. The van must be used for a minimum of 28 days per year for either driving by the owner or an employee, or for business purposes.
  2. Register in the business’s name, or it must be an employee lease or rental scheme. Where the employer pays the rent and the employee receives the benefit of the vehicle.
  3. Use exclusively for business purposes. Which means it can be used only concerning the business’s trade. You can’t use the van for personal purposes, such as commuting to and from work.
  4. Register with the Vehicle and Licensing Authority (DVLA). This means it must have a licence plate and be registered as having passed an MOT test.
  5. The van can’t be used for off-road driving or used for hire and reward purposes, such as taxi or courier services. It should be purchased, rented, or leased after 1 September 2002.
  6. The employee must be entitled to a benefit in kind, and the van must be registered for business use.


How to Claim Tax Back on the Van?

There are two main ways to claim van tax back:

1. Using an accountant or tax adviser

If you have a small business and you’re not confident completing the forms yourself, you can enlist the help of an accountant or tax adviser. They can handle all the intricacies of the claim and guide you through the process. They will often charge a fee for their services. But it’s worth it to have the peace of mind that someone else is handling the claim for you.

2. Completing the forms yourself

If you’re confident in completing forms and keeping accurate records, you can claim van tax back yourself. You will need to complete a TR1 (Tax Relief on Vehicles) form. Which is available on the HMRC website. The form asks you to provide details about the van, your business, and your expenses. You will also need to keep accurate records of your business mileage and expenses, as well as any supporting documents, such as receipts or invoices.

Here are the steps to claim van tax back:

  1. Keep accurate records of your mileage and business-related expenses. You will need to provide these figures to claim the van tax back.
  2. Complete a TR1 form, which is available on the HMRC website. You will need to provide details about the van, your business, and your expenses.
  3. Send the TR1 form to HMRC along with any supporting documents.
  4. Check your tax code to ensure you are receiving the correct amount of tax relief.


Tips for Maximising Van Tax Back

As a business owner in the UK, claiming van tax back can provide a variety of benefits. Here are some of the key advantages:

1. Reduced tax liability

By claiming van tax back, you can reduce your tax liability, which means more money in your pocket for your business.

2. Increased cash flow

Claiming van tax back can provide an immediate boost to your cash flow. Which can be particularly advantageous for small businesses that may be struggling to stay afloat.

3. More tax-efficient vehicle choices

Van tax back allows you to purchase or lease a van that is more tax-efficient. This means you can choose a vehicle that meets your business needs without having to worry as much about the tax implications.

4. Improved vehicle maintenance

By claiming your van tax back, you can afford more regular vehicle maintenance checks. Which can help to reduce breakdowns and improve the overall running of your business.


Are There Any Drawbacks?

Claiming van tax back is not a completely straightforward process and there are some potential drawbacks to be aware of:

1. Tax code update

HMRC will update your tax code when you claim van tax back, and this can sometimes take a few weeks to process. During this time, you may see a difference in your take-home pay, which can cause temporary disruption to your finances.

2. Tax returns

If you’re self-employed and you make a claim for van tax back, you’ll need to complete a tax return at the end of the tax year. This can be a time-consuming and complex process. So it’s important to keep accurate records of your business mileage and expenses throughout the year to ensure that your tax return is completed successfully.

3. Limited van options

When claiming van tax back, the van must meet certain eligibility requirements. Such as being used exclusively for business purposes. This means that you may be limited in the type of van that you can choose, which may not meet all of your business needs.

4. Capital allowance limits

Capital allowances are the amount that you can claim for capital assets, such as a van, for years. There are limits to how much you can claim each year, and any capital allowances that you don’t claim in one year will be lost.

5. Maintenance and upkeep

It’s important that you keep your van in good condition and that you carry out regular maintenance checks. Failure to do so may invalidate your van tax back claim and result in penalties or fines.



In conclusion, claiming tax back on the van is a valuable scheme for UK businesses that allows them to claim relief on a variety of expenses. Such as capital allowances, insurance costs, and business mileage. By claiming van tax back with accurate records and professional guidance, business owners can reduce their tax liability. Increase their cash flow, and gain access to more tax-efficient vehicle choices.

However, it’s important to be aware of potential drawbacks. Such as tax code updates, tax returns, limited van options, capital allowance limits, and maintenance and upkeep requirements. By being prepared for this potential challenge, you can maximise the benefits of van tax back and support the growth and efficiency of your business.


If you seek professional help to learn more about claiming tax back on the van, why wander somewhere else when you have our young and clever team of professionals at CruseBurke?


Disclaimer: The information about claiming tax back on the van provided in this blog includes text and graphics of a general nature. It does not intend to disregard any of the professional advice.

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