Tax Return help for Couriers …What allowances & expenses can I claim?
All self employed Couriers have to complete a tax return. It is important that you are aware of what allowable expenses you can claim against your income. From our experience, there are a number of people that end up paying more tax than necessary, either because they haven’t recorded evidence of their costs or they don’t realise what expenses and allowances they can claim. Basically any expenses that you have incurred which are wholly and exclusively for your work are tax deductible.
We have listed below the most common expenses which can save you tax.
If you use your vehicle for your own personal use then you need to factor this in when any expenses are claimed. For example if you calculate that you use your vehicle 20% of the time for personal or family use, then you would need to reduce any relevant vehicle running expenses by 20%.
Allowable Expenses for Couriers
- Petrol or diesel costs
- The cost of repairs, servicing and running the vehicle
- The costs of your annual road tax and your MOT test
- The cost of washing or cleaning your own vehicle
- Interest on any bank or personal loans taken out to purchase your vehicle
- Your license and any other registration fees
- The cost of running your office (if you have one) or use of your home
- Vehicle insurance
- AA/RAC membership
- Radio hire
- Accountancy fees
- Phone usage for business use
- Parking & toll fees
- Printing, postage & stationary
- Professional subscriptions & Trade Magazines
Capital Allowances can also be claimed for the cost of the vehicle. These can vary between 18% and 100% depending on the type of vehicle. Other assets used for the business may also be claimed.
An alternative to claiming the vehicle running costs is the HMRC’s Fixed Scale Mileage Rate which is currently 45p per mile for the first 10,000 and 25p thereafter. You can also claim 24p per mile for a motor cycle and 20p per mile for a bicycle. Please note: You cannot change from one method to another. Whatever method you adopt you have to stay with until you change the vehicle.
This includes a depreciation allowance (capital allowance) for the vehicle but does not include interest on any loan to purchases the vehicle. This can be claimed in addition to the mileage allowance.
KWA Tax Returns Online – Our service
Completing your Tax Return correctly, without hassle, may not be an easy task and also can be time consuming. For just £130 (after tax relief £104) we can prepare and file your Tax Return for you without any fuss and ensure you claim all the expenses you are entitled to, saving you tax. Simply provide us with the information we ask for then leave the rest to us.
The material in this article is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation.