Van insurance

Partial

Van insurance premiums are fully deductible as a business expense for sole traders who use their van solely for work. If you also use the van personally, you can only claim the business-use proportion.

Common questions

Can I claim van insurance as a sole trader?

Yes. If the van is used exclusively for business, the full premium is deductible. Keep the insurance certificate and bank records as evidence.

I use my van for both work and personal trips. Can I still claim?

Yes, but only the business-use proportion. Work out the percentage of miles driven for business versus personal use and apply that to the premium. Example: a £600 premium on a van used 80 per cent for work gives a £480 claim.

I claim the flat mileage rate for my van. Can I also claim the insurance?

No. The flat mileage rate (AMAP) covers all the running costs of the vehicle, insurance included. Claim insurance separately only if you claim actual vehicle costs instead of the mileage rate.

Watch out for

Breakdown cover added to the policy is also deductible as part of the same premium.
If HMRC disputes the split, mileage logs are the strongest evidence.

Common mistakes

Claiming insurance on top of the flat mileage rate. The mileage rate already covers it.
Claiming 100 per cent of the premium on a van that doubles as the family vehicle. Only the business share qualifies.

Cash basis vs traditional accounting

Premiums are a day-to-day running cost on both methods. On cash basis, deduct what you paid in the year. On traditional accounting, an annual premium spanning your year end is apportioned across the two years.

This guidance is for sole traders. Limited company rules differ.