As a self-employed courier there are a number of areas that you should consider in relation to the way your business can be run to make it more tax efficient for you:
Value Added Tax (VAT)
Even though your business may not reach the VAT registration threshold it can often be to your advantage to register voluntarily. As the vast majority of your expenses will relate to the purchase and running costs of your delivery vehicle, the chance to recover the VAT on these and thus increase your profitability should not be ignored. As a rough guide, for every £1,000 spent you could recover nearly £150!!
If registered for VAT you have a choice of the type of scheme you can use. You can either use what is known as the Flat Rate scheme whereby a fixed percentage of your turnover is paid over as VAT or you keep more detailed records and account for the VAT on the sales and expenses separately.
Your TaxAssist Accountant is able to advise you on which would be the better method for you and is also able to help you set up a simple record keeping system.
Expenses
Although the running expenses of your vehicle are able to be set off against your courier income in order for your tax liability to be worked out, there are other expenses, such as insurance and protective clothing that you can also claim to help reduce your overall tax bill.
An expense often overlooked by the small business man/woman if they try to complete their own tax return is that they can claim for the loss of value in the vehicle they are using for the deliveries. This is known as Capital Allowances. Your TaxAssist Accountant will calculate this matter of course when he/she prepares your accounts and tax return.
How we can help
We have access to libraries of information about the courier industry at TaxAssist Accountants and we believe we offer the best service available to self employed and small businesses in the United Kingdom.
If you would like to discuss any of the issues raised here then please do get in touch by calling 0845 009 9990. The first meeting you have with our accountant is free with no obligation to use our services so call us today to make sure you are in the best tax saving position possible.
Printable 'Tax Information for Couriers' Page
