A typical self-employed same day courier will put a lot of effort into keeping their vehicle running costs as low as possible; the difference between their running costs and their turnover is their profit after all. It’s quite common to leave financial matters, particularly tax-related matters, to an accountant or bookkeeper and I’m always astonished how many ‘accountants’ fail to advise their same day courier clients to consider using the Mileage Allowance Scheme rather than claiming their actual vehicle running costs against tax.
Many accountants seem completely unaware that this option is available to their clients, despite it being prominently featured in the HMRC Help Sheet HS222: How to calculate your taxable profits.
Self-employed people with a turnover under the VAT registration threshold Read More…
Posted under Courier Basics, Courier Financial Issues, Mileage Allowance Scheme
Posted by Alec at 8:42 am, July 30, 2008