Actual expense method
Quick definition
Deducting the real costs of operating a vehicle for business instead of claiming a flat per-mile rate.
Full definition
The actual expense method totals what the vehicle genuinely cost to run over the year, including fuel, insurance, repairs, tyres, registration and depreciation, then claims the business-use share of that total.
It usually beats the standard rate for expensive vehicles or high running costs, but it demands receipts for everything and a defensible business-use percentage. Once you choose it for a vehicle in its first year, switching methods later is restricted.
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