Your van is probably the single most expensive thing in your plumbing business, and how you claim for it is one of the most confusing areas for sole traders. This guide explains the two methods, which is likely better for you, and what you can and can’t claim.
55p per business mile for the first 10,000 miles (up from 45p in April 2026), then 25p after. Covers everything — fuel, insurance, road tax, MOT, servicing, repairs, depreciation. Full detail on the rate change in New 55p Mileage Rate 2026.
Add up everything you spend on the van, then claim the business proportion of your total mileage.
The plumber: 9,000 business miles a year (12,000 total). Van bought for £15,000 two years ago. Annual costs: fuel £2,400, insurance £1,200, road tax £290, MOT £55, servicing £400, repairs £300, tyres £250.
| Method | Calculation | Deduction |
|---|---|---|
| Simplified mileage | 9,000 miles × 55p | £4,950 |
| Actual costs | £4,895 total × 75% business | £3,671 |
Simplified mileage gives a bigger deduction here, with far less paperwork.
Only under actual costs, via the Annual Investment Allowance, and only the business-use proportion. Simplified mileage covers depreciation already — you can’t claim the purchase price separately.
HP: claim capital allowances plus the interest portion of payments (actual costs only). Leasing: claim lease payments (actual costs only). Simplified mileage covers everything regardless.
Once you choose simplified mileage for a vehicle, you can’t switch to actual costs for that same vehicle. Ever.
Always claimable on top of either method. Parking and speeding fines are never deductible.
For most self employed plumbers, simplified mileage at 55p/mile is the better option. Once your van costs are sorted, make sure the rest of your expenses are covered too in Self Employed Plumber Tax Return — Step by Step Guide.
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