Use of own vehicle

agent_orange_2

Hi, I have been using my own vehicle as a home delivery courier for DHL.
I am registered and self employed, only earning about £80 a week. I also receive a pension, so therefore, these earning are taxable. I was informed that I would be allowed tax relief on 40p of earnings per mile travelled. As yet, I haven't had to do a tax return.

The thing is, I now find that the only use of my vehicle is for courier delivery. If I am only using vehicle for delivery work, would I be entitled to a different level of tax relief.


Thanks for any advice.

kitty1801

If you are self employed, you can either claim the 40p/25p per mile rate as an expense or the actual business motoring costs.

It really depends how much mileage you expect to do as to which one is better. If you opt for the second option, you will need to keep all receipts etc relating to the upkeep of your vehicle so you can work out the total to claim.

Hopefully someone else on here might be able to give you some more info on the second option otherwise your own tax office can go over the options with you

agent_orange wrote: »

Hi, I have been using my own vehicle as a home delivery courier for DHL.
I am registered and self employed, only earning about £80 a week. I also receive a pension, so therefore, these earning are taxable. I was informed that I would be allowed tax relief on 40p of earnings per mile travelled. As yet, I haven't had to do a tax return.

The thing is, I now find that the only use of my vehicle is for courier delivery. If I am only using vehicle for delivery work, would I be entitled to a different level of tax relief.


Thanks for any advice.

agent_orange_2

I average about 90 miles a week courier work, that's all I do in the vehicle.

mswannabe_2

agent_orange wrote: »

I average about 90 miles a week courier work, that's all I do in the vehicle.

Keep it simple;) Claim for 40p per mile up to 10000 miles per annum. Anything in excess of this is claimable @25p per mile. All mileage claims must be business only mileage. No personal travel mileage or face the wrath of HMRC.
If you start to complicate things and claim for servicing, tyres etc, you will have to submit an annual P11D - Summary of expenses. This is in addition to your annual tax return. HTH

agent_orange_2

mswannabe wrote: »

Keep it simple;) Claim for 40p per mile up to 10000 miles per annum. Anything in excess of this is claimable @25p per mile. All mileage claims must be business only mileage. No personal travel mileage or face the wrath of HMRC.
If you start to complicate things and claim for servicing, tyres etc, you will have to submit an annual P11D - Summary of expenses. This is in addition to your annual tax return. HTH

Thanks for your thoughts. Assuming I average 90 miles a week , my sums suggest that means - £36 a week I will not have to pay tax on = £7.20 tax relief.
Bearing in mind I do not use the vehicle for anything else other that the courier work, that seems a very small sum.

mswannabe_2

agent_orange wrote: »

Thanks for your thoughts. Assuming I average 90 miles a week , my sums suggest that means - £36 a week I will not have to pay tax on = £7.20 tax relief.
Bearing in mind I do not use the vehicle for anything else other that the courier work, that seems a very small sum.

Agree £36 a week is not a great deal of money but times that by 52 weeks = £1872.00 tax free every year. I know that you said you are self employed but depending on how you operate, you may also be able to claim for use of home office for business use, claim an allowance for computer, stationary, postage etc. It might be worth your while seeking advice from an accountant or searching on the internet for more allowable business expenses. Good luck:D

agent_orange_2

Mswannabe, thanks again. So, the tax relief is worth about £375 in my pocket per year. I use about £10 a week fuel and of course there is tax/ins and wear and tear.
As I say, only using the vehicle for the purpose of the courier job (earning £80 week) doesn't seem to be a good return. I'll obviously going to check things out.

cheers for your help

mswannabe_2

agent_orange wrote: »

Mswannabe, thanks again. So, the tax relief is worth about £375 in my pocket per year. I use about £10 a week fuel and of course there is tax/ins and wear and tear.
As I say, only using the vehicle for the purpose of the courier job (earning £80 week) doesn't seem to be a good return. I'll obviously going to check things out.

cheers for your help

You can also claim for the costs of any business related telephone calls and broadband costs if you regularly use the internet for business use;) .

ceeforcat

mswannabe wrote: »

Keep it simple;) Claim for 40p per mile up to 10000 miles per annum. Anything in excess of this is claimable @25p per mile. All mileage claims must be business only mileage. No personal travel mileage or face the wrath of HMRC.
If you start to complicate things and claim for servicing, tyres etc, you will have to submit an annual P11D - Summary of expenses. This is in addition to your annual tax return. HTH

The op has stated that he is self employed - a P11D is a return of benefits received from your employer and totally irrelevant in this instance. An employee does not submit forms P11D in any case- the employer does!

Quite simply - add up ALL of your motoring costs - insurance, tax, repairs, fuel (plus H.P. interest if appropriate) . Keep a record of business and total mileage and apportion accordingly. In addition you are also able to claim capital allowances on the depreciation of your vehicle. At that point you should probably seek professional advice.

mswannabe_2

ceeforcat wrote: »

The op has stated that he is self employed - a P11D is a return of benefits received from your employer and totally irrelevant in this instance. An employee does not submit forms P11D in any case- the employer does!

Quite simply - add up ALL of your motoring costs - insurance, tax, repairs, fuel (plus H.P. interest if appropriate) . Keep a record of business and total mileage and apportion accordingly. In addition you are also able to claim capital allowances on the depreciation of your vehicle. At that point you should probably seek professional advice.

If you are registered as self employed, you are considered to be in business and trading and must operate as one of the following:

• a sole trader.
• a partnership.
• a limited company.

You will note from my earlier post that I have no idea how the OP operates and suggested taking professional advice.

Below are some links for info on self employment

http://www.adviceguide.org.uk/index/life/employment/self-employment_checklist.htm

http://www.hmrc.gov.uk/sa/self-emp-part.htm

mswannabe_2

ceeforcat wrote: »

The op has stated that he is self employed - a P11D is a return of benefits received from your employer and totally irrelevant in this instance. An employee does not submit forms P11D in any case- the employer does!

Quite simply - add up ALL of your motoring costs - insurance, tax, repairs, fuel (plus H.P. interest if appropriate) . Keep a record of business and total mileage and apportion accordingly. In addition you are also able to claim capital allowances on the depreciation of your vehicle. At that point you should probably seek professional advice.

P.S I forgot to mention that I am an 'employer and employee' of my own limited company so P11D is very relevant!