Self Assessment – self employed Couriers
All self employed people 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 deductable.
It is now possible to claim a 100% capital allowance, in the year of purchase, for the cost of your Motor Cycle. This is called an Annual Investment Allowance. This is very useful and can result in some generous tax savings.
Allowable Expenses for Couriers
- Fuel costs
- The cost of repairs, servicing and running the motor cycle
- The costs of your annual road tax and your MOT test
- The cost of washing or cleaning your vehicle.
- Interest on any bank or personal loans taken out to purchase your motor cycle.
- Your license and any other registration fees
- The cost of running your office (if you have one) or use of your home
- Motor insurance
- AA/RAC membership
- Radio hire
- Accountancy fees
- Phone usage for business use
- Parking & toll fees
- Protective clothing gear
- Printing, postage & stationery
- Professional subscriptions and trade Magazines
Capital Allowances can also be claimed for the cost of the Motor Cycle. This can be 100% of the cost in the year it was purchased. Other assets used for the business may also be claimed.
An alternative to claiming Motor Cycle running costs is the HMRC’s Fixed Scale Mileage Rate which is currently 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 Bike.
This includes a depreciation allowance (capital allowance) for the Motor Cycle but does not include interest on any loan to purchases the Motor Cycle. 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 £99.00 (after tax relief £79.00) 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.
Contact us or register and start using our online service now for free.
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.