Van vs Car: What Trades Can Actually Claim
If you work in a trade, the vehicle you choose changes your tax bill.
Here is how vans and cars compare.
By Andy Smith, Founder & Finance Director
If you work in a trade, the vehicle you choose changes your tax bill more than you might think. Here is how vans and cars compare.
Capital allowances
A van counts as plant and machinery, so it usually qualifies for full expensing or the annual investment allowance, meaning up to 100% tax relief up front. A car only gets writing down allowances based on CO2: 100% first-year relief only for a new zero-emission car, then 14% a year up to 50g/km and just 6% above that.
Benefit in kind
If there is any private use, a van has a flat, relatively low benefit charge (£4,170 for 2026/27, plus £798 if fuel is provided), and a fully electric van is nil. A car is taxed as a percentage of its list price based on CO2, which can be far higher.
The catch
It has to genuinely be a van in HMRC eyes. Some double-cab pickups have been reclassified as cars, which changes everything, so check before you buy.
Figures correct at the time of writing (2026/27). We will run your numbers before you commit.
We help trades pick the most tax-efficient vehicle and fund it the right way.
