How do I claim vehicle expenses as a self-employed Canadian?
Self-employed Canadians can deduct vehicle expenses for business travel — but not for commuting between home and a regular workplace (which is personal). There are two main methods: **Actual costs method:** Deduct the business-use proportion of your actual vehicle costs: - Fuel and oil - Insurance - Repairs and maintenance - License and registration - Lease payments (with a monthly deductible lease limit) - Capital Cost Allowance (CCA) on the vehicle (Class 10 or 10.1) Business-use % = business kilometres ÷ total kilometres driven in the year **Simplified (flat rate) method — not available in Canada.** Unlike the UK (45p/mile), Canada does not have an official published flat rate for self-employed business vehicle claims. Employees can use the 70¢/km rate for employer reimbursement, but self-employed individuals must use actual costs. **Logbook requirement:** The CRA requires a mileage logbook recording: date, destination, purpose, and odometer readings for every business trip. This is essential for vehicle expense claims and must be kept for 6 years.
- Deduct actual costs × business-use percentage — no flat rate for self-employed
- Business % = business km ÷ total km driven in the year
- Must keep a detailed mileage logbook — date, destination, purpose, km
- Eligible costs: fuel, insurance, repairs, lease payments, CCA
- Vehicle purchase claimed via CCA (Class 10 or 10.1), not as a direct expense