Operating your own motor vehicles
Tax relief
When you operate motor vehicles in your business you can get certain concessions, known as relief, on paying tax.
You can reduce your taxable business profits by deducting amounts relating to:
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the cost of motor vehicles used in the business - these are known as capital allowances and are worked out as a proportion of the cost
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interest paid on bank loans used to acquire the motor vehicles
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maintenance and running costs
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rental payments, if you have leased the motor vehicles
You can reclaim VAT paid by the business in some situations:
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if the motor vehicles are used exclusively for business purposes and are not available for private use, you may reclaim the VAT paid on the purchase price
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even if the motor vehicles are available for private use, you may reclaim the VAT on the cost of repairs and maintenance
Find out about VAT on motor vehicles at the HMRC website - Opens in a new window.
Subjects covered in this guide
- Introduction
- Operational overheads
- Methods of acquiring vehicles
- Tax implications
- Tax relief
- Driver management
- Safety and economy
- Driving within or outside the European Union
