Working From Your Van: Insurance and Tax Implications
More van lifers are working remotely than ever. But working from a van has insurance and tax implications that most people miss. Here's what you need to know.
Insurance Implications
Social, Domestic and Pleasure
Most campervan insurance covers "social, domestic and pleasure" use. This means personal trips, holidays, and errands. It doesn't cover business use.
Business Use
If you're driving to client meetings, visiting sites, or using the van for work, you need "business use" cover. This typically adds £50-100/year to your premium.
Commuting
If you drive to a fixed workplace (even occasionally), you need "commuting" cover. This is separate from business use.
The Grey Area
Working from a campsite isn't usually considered business use — you're not driving for work. But if you drive to a client's office or attend meetings, you need business use cover.
What Counts as Business Use?
- Driving to client meetings or offices
- Visiting sites or properties for work
- Carrying tools or equipment for work
- Making deliveries (even occasional ones)
- Driving between work locations
What Doesn't Count?
- Working on a laptop at a campsite
- Taking video calls from the van
- Driving to a campsite for a working holiday
- Driving to a co-working space (this is commuting, not business use)
Tax Implications
HMRC Rules
If you work from a van, HMRC may allow you to claim tax deductions for:
- Mileage: 45p per mile for the first 10,000 miles, 25p thereafter
- Fuel: If the van is used for business purposes
- Insurance: The business-use portion of your insurance premium
- Repairs: Business-use portion of repairs and maintenance
Sole Trader vs Limited Company
- Sole trader: You claim expenses on your Self Assessment tax return
- Limited company: The company claims expenses and pays less Corporation Tax
VAT
If you're VAT-registered, you can reclaim VAT on van-related expenses. This includes insurance, fuel, and repairs.
How to Claim Mileage
Log Your Journeys
Keep a mileage log. Record the date, destination, purpose, and miles driven. HMRC can ask for this evidence.
Use an App
Apps like MileIQ, Triplog, and Fuelio automatically track your journeys and calculate mileage.
Submit on Your Tax Return
Claim mileage on your Self Assessment tax return under "business expenses."
Common Mistakes
- Not declaring business use: Invalidates your insurance
- Not keeping a mileage log: HMRC can reject your claims
- Claiming personal use as business: HMRC will investigate
- Forgetting to update your V5C: If the van is registered at a different address
Conclusion
Working from a van is straightforward, but you need the right insurance and tax setup. Declare business use on your insurance, keep a mileage log, and claim what you're entitled to. The tax savings can be significant.
