Writing down allowance
A writing down allowance is the percentage of an asset's remaining value you can deduct each year. Cars go into a pool and are written down at a rate that depends on their CO2 emissions.
Correct for the 2026/27 tax year. Last checked 12/09/2026.
The word "pool" is literal. The car goes into a pool of value, a percentage of the pool is deducted each year, and what is left carries forward.
What it means for your money
Relief comes slowly. A car written down at a low rate gives back a small fraction of its cost each year for a very long time, which is one reason the mileage rate suits most gig drivers better.
Private use has to be taken out. A car used half privately gets half the allowance, and that split has to be justifiable rather than convenient.
Where to read more
Capital allowances on a vehicle puts the two methods side by side over five years.
Related
Capital allowances on a vehicle
A capital allowance is tax relief on something you bought to keep and use, spread over years rather than deducted at once. You cannot claim capital allowances on a vehicle and use the mileage rate for it, so for most gig drivers this is a road not taken.
Mileage & expensesUpdated 27/08/2026
Capital allowance
A capital allowance is tax relief on something you bought to keep and use in the business, such as a vehicle. Instead of deducting the whole cost in one year, you deduct a percentage of what is left each year.
HMRC & taxUpdated 27/08/2026
Buying, leasing or PCP as a gig driver
For high-mileage gig work, buying a cheap car outright is usually cheapest, because leases and PCP deals price mileage and you will exceed the allowance. The exception is an electric lease where the fuel saving and the zone exemptions outweigh the monthly cost.
Vehicles & equipmentUpdated 27/08/2026
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