Can freelancers deduct a car and fuel in the UK and Spain?
Mileage method or business proportion
UK sole traders usually claim the simplified mileage rate (45p per business mile for the first 10,000 miles, 25p after), which covers fuel, insurance and wear. The alternative is actual costs proportioned to business use. Commuting to a regular workplace doesn't count as business miles.
Generally blocked for IRPF unless exclusively business
For income tax, Hacienda only accepts passenger-car costs when the vehicle is used exclusively for the activity — a presumption that is very hard to rebut for a normal freelancer, and mostly reserved for taxis, driving schools, couriers and commercial vehicles. VAT is different: 50% of the VAT quota is presumed deductible. Expect the car itself to be a personal cost.
If you file in both countries
The starkest UK-Spain gap on this list: the same client-visit miles that earn 45p each in the UK are usually worth nothing against Spanish IRPF. Budget accordingly, and don't copy a UK accountant's car advice into your Spanish return.
Evidence to keep
- ✓UK: a simple mileage log — date, destination, business purpose, miles
- ✓Spain: fuel facturas with NIF if you claim the VAT portion
- ✓Vehicle documents showing category, if it's a commercial vehicle
Frequently asked questions
Why can't I deduct my car in Spain when I clearly use it for work?
Spanish IRPF rules require exclusive business use for passenger cars, and partial use isn't accepted the way it is in the UK. It's one of the most commonly rejected autónomo deductions.
What about a van or commercial vehicle?
Vehicles classed as commercial or used in transport activities sit outside the exclusivity trap and are generally deductible. Category and documentation matter — check with your gestor before buying.
Forensix provides software for organizing tax records and producing estimates. We are not registered tax advisors; rules change and individual circumstances differ. Treat this page as general information and confirm your own case with a gestor or accountant before filing.