Mileage Allowances

Richard wrote:

I am not sure what you mean, if you were employed & your company sent you to London you would charge them mileage 44p per mile there & back.

40p/mile, not 44p.

Richard wrote:
There is no legal obligation for you to declare it to taxman or anyone else.
There is no obligation to keep any records

Apart from the detailed written log of all your journeys.

Richard wrote:
Taking that a step further you own the van & pay all of the outgoings. You receive 44p per mile while driving it. It sucks all of the money out of limited company into your tax free pocket.

You can even assume the 44p includes vat (its a loophole exploit it while it still exists)

You’re only allowed to claim the VAT on the fuel element, not on the full mileage allowance and now you’ve got to keep VAT receipts at least covering the VAT claimed.

Richard wrote:
Basically Gordon turned this bit of legislation into a Dogs dinner & he is too arrogant to revisit it (Suits me fine)

In practice the current situation is no different to the situation that existed for years before the newest legislation was brought in. All that’s really changed is the mileage rates and the fact that the allowance is statutory rather than concessionary.

It’s worth pointing out that the self-employed also have the option of using the mileage allowance scheme providing their turnover isn’t over the VAT registration treshold.

Posted under Mileage Allowance Scheme, Uncategorized, VAT

Posted by Alec at 8:50 am, January 14, 2008

To register for VAT or not?

Well they wouldn’t be QUITE 17.5% better off, but you’re 100% correct that everyone in this business should be VAT registered – it’s just doesn’t make sense not to be.

If anyone’s worried about the paperwork (and they shouldn’t be) then at least register on the Flat Rate Scheme; it shouldn’t take you more than half an hour a month to do the admin and you’ll add over 6.9% of your turnover straight on to your bottom line.

Posted under Courier Financial Issues, VAT

Posted by Alec at 3:38 pm, December 4, 2007

VAT on a courier collection that started in Guernsey?

Not quite Andy. That only applies to transport between 2 EU countries where the customer is based inside the EU but outside the UK.

If you carry out transport wholly within the UK then you have to charge VAT on it wherever your customer is based, EXCEPT if you carry out the UK leg of a delivery that starts or ends outside the EU. So if you were, for example, to collect goods from Portsmouth that had originated in the Channel Islands as part of a delivery from the Channel Islands to somewhere in the EU then you’re meant to zero-rate your charges.

The same is true if you collect goods from outside the EU from a freight forwarder for delivery in the UK – even though you’re just delivering UK to UK you’re meant to zero-rate the UK leg of the transport.

And if you’re delivering 100 consignments from various EU and non-EU countries on the same trip, on your round for TNT International say? According to the VAT office you’re meant to apportion the delivery costs to each consignment and zero rate the costs for the consignments that originated outside the EU!! And you’re meant to keep documentary evidence to justify the zero-rating.

Mostly everyone just ignores it and standard-rates everything, but if your customer is outside the EU and can’t reclaim the VAT then they could kick up a fuss if they wanted.

Posted under VAT

Posted by Alec at 6:04 pm, November 22, 2007


So far this week I’ve had 4 conversations with owner-drivers about fuel prices: none of the owner-drivers were VAT registered.

How far would you drive to save 14.89p/litre on fuel?

Posted under Courier Basics, Courier Financial Issues, VAT

Posted by Alec at 11:37 am, October 1, 2007


‘Network’ invoices are as good as, or better than, any other invoice you can produce.

Whatever you do don’t raise a ‘Network’ invoice as well as your own – it just makes extra work for everyone.

Posted under Courier Basics, Courier Financial Issues, VAT

Posted by Alec at 9:03 pm, June 4, 2007

Flat Rate VAT or Cash Accounting

Both….maybe. There’s a cash-based version of the flat rate sceme – very simple to administer.

If you’re planning on subbing out a lot of work then the flat rate scheme may not be suitable if your suppliers are mainly VAT registered.

Posted under Courier Financial Issues, VAT

Posted by Alec at 4:34 pm, May 30, 2007

Courier ‘Network’ Invoices

Some of you appear to have not noticed that you can now clear your ‘jobs to invoice’ from My ‘Network’ without having to raise a ‘Network’ invoice.

There’s now NO POSSIBLE EXCUSE for raising a ‘Network’ invoice and your own invoice with a different number SO PLEASE STOP DOING IT.

And while you’re at it PLEASE STOP sending us hard copy ‘Network’ invoices that we’ve already paid., copies of ‘Network’ ‘Order Confirmations’ that we have no possible use for and ‘Network’ non-POD sheets that we could look at on the site if we had a mind to. It’s all irrelevant and just makes work for us. Some companies may require all this rubbish but we DON’T.

Could I also point out that you can now add your own customised message that will appear automatically at the bottom of every ‘Network’ invoice you produce. Maybe some of you could use this new facility to add your bank details to your invoices?

Posted under Courier Basics, Courier Financial Issues, VAT

Posted by Alec at 3:17 pm, February 28, 2007

VAT flat rate voluntary disclosure

It’s a bit odd to actually be asked directly whether you want to make a voluntary disclosure. Is this letter particularly addressed to COURIERS on the FRS? Maybe they’ve realised that there’s a lot of couriers making a particular error? Contra-charged invoices are quite common in the courier industry and could easily be handled wrongly under the FRS if someone didn’t understand the issues. It could be as simple as that.

I’ve emailed you.

Posted under VAT

Posted by Alec at 11:19 am, February 21, 2007