Use of own vehicle

ceeforcat

mswannabe wrote: »

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

Believe me - and with great respect -if you are operating as a limited company you are definitely not self employed, quite the opposite. The second you incorporate you cease to be self employed and become an employee of your company. Furthermore, it is no longer 'your company' as you become entirely separate entities. If the OP is self employed as he states I would repeat my previous assertions - P11D forms should not be on his radar.

You will also note that the link which you provided does not refer in any way to Ltd Companies as a self-employed medium.

I should also add that I am a qualified tax professional of some 25 years experience.

mswannabe_2

ceeforcat wrote: »

Believe me - and with great respect -if you are operating as a limited company you are definitely not self employed, quite the opposite. The second you incorporate you cease to be self employed and become an employee of your company. Furthermore, it is no longer 'your company' as you become entirely separate entities. If the OP is self employed as he states I would repeat my previous assertions - P11D forms should not be on his radar.

You will also note that the link which you provided does not refer in any way to Ltd Companies as a self-employed medium.

I should also add that I am a qualified tax professional of some 25 years experience.

The first link from Citizen Advice Bureau quotes this and led me to believe that to be self employed, you have to operate as a partnership, sole trader or limited company:

How to trade



If you are considering self-employment, you will need to discuss with one of the organisations listed under heading Who can give further advice the different ways of trading and which would be most appropriate for your business. The business could take one of three legal forms:-

• a sole trader. This is the simplest way of starting a business
• a partnership. This is similar to a sole trader except that two or more people run the business
• a limited company. This gives the business a completely separate identity from the people who run the business. It is more complicated to set up.

I have little understanding of operating as a sole trader or partnership, only as a director of a limited company hence my suggestion to seek professional advice. Good luck Agent Orange.

ceeforcat

Must confess – I am seriously confused by this one. If Agent Orange is self employed (and he says he is and is registered) why would DHL inform him about the 40p per mile allowance when this clearly only applies to employees using their own car.

I have some doubts regarding Agent Orange’s employment status. Sounds to me as if he is under contract to DHL, works according to DHL instructions, is paid an hourly rate, has been offered 40p per mile, does not work for anyone else and is paid the same amount every week. To me Agent Orange is an employee of DHL and, accordingly:

a) should be on the payroll

b) Should be claiming up to 40p per mile from DHL not the taxman.

I know that, if I was still with HMRC, I would be looking at this.

What does anyone else think?

agent_orange_2

ceeforcat wrote: »

Must confess – I am seriously confused by this one. If Agent Orange is self employed (and he says he is and is registered) why would DHL inform him about the 40p per mile allowance when this clearly only applies to employees using their own car.

I have some doubts regarding Agent Orange’s employment status. Sounds to me as if he is under contract to DHL, works according to DHL instructions, is paid an hourly rate, has been offered 40p per mile, does not work for anyone else and is paid the same amount every week. To me Agent Orange is an employee of DHL and, accordingly:

a) should be on the payroll

b) Should be claiming up to 40p per mile from DHL not the taxman.

I know that, if I was still with HMRC, I would be looking at this.

What does anyone else think?

Hi, I am a dhl home courier. DHL deliver parcels to my home address, which, I then deliver on to the intended recipients (in my own vehicle). I am paid by DHL, 65p a parcel, I am paid for a minimum of 25 parcels a day, works out at just over £80 a week. I had to register as self employed (Sole trader) or could it be self assessment? DHL never gave me any advice on payment of tax or claimable tax reliefs, only just to say it was my responsibility.
My understanding is, I will be sent tax forms in the new year for tax owed.

mswannabe_2

agent_orange wrote: »

Hi, I am a dhl home courier. DHL deliver parcels to my home address, which, I then deliver on to the intended recipients (in my own vehicle). I am paid by DHL, 65p a parcel, I am paid for a minimum of 25 parcels a day, works out at just over £80 a week. I had to register as self employed (Sole trader) or could it be self assessment? DHL never gave me any advice on payment of tax or claimable tax reliefs, only just to say it was my responsibility.
My understanding is, I will be sent tax forms in the new year for tax owed.

Hi

I was going to ask you the question on how you operate but then didn't want to come across as being nosey;) . I'm still unsure if you are classed as an employee, employer as I have no experience of working as a sole trader. I have found these links from HMRC website which give a good guide on allowable reliefs and expenses for both scenarios. Have a look through and give your local tax office a phone call to explain your situation and ask which allowances and reliefs apply to you. I've found HMRC staff to be very friendly and approachable. They will appreciate that you are only trying to operate correctly.
http://www.hmrc.gov.uk/incometax/how-to-get.htm
http://www.hmrc.gov.uk/incometax/relief-self-emp.htm

ragz_2

Regarding the employment staus issue, which is not really anything to do with the OP's question, I recently discovered, during an employment tribunal with my OH, that there is another staus, "worker" somewhere between employed and self-employed.
If DHL are the only company you work for, they find the work, tell you when to do it etc, sounds like you are an employee (I had to do a lot of research for OH on this subject) but could be a "worker", which means you pay your own tax, NI etc.
I would recomment, as this is the only thing you use the car for, that you put through ALL car related receipts. Fuel, tax, insurance, MOT, servicing etc.
We use the 40p per mile method as the car OH uses we use at weekends ao he keeps a diary.
We find it takes a nice sum of our taxable income!

agent_orange_2

Jimmo, thanks for your post. I've taken a good look at myself and what I have stated is true. What would be the point of coming here looking for advice, with information that is false? I didn't state the vehicle I use for deliveries is our only means of transport. The vehicle I use for deliveries is a car. My Wife and I also have a family car, which we use for the journeys you mention. I can honestly say, since the end of August, when I ran my son to an interview 10 miles away, the car has only been used for the delivery job. On two or three occasions I have stopped off at friends when I have been on the round, but not off the route. Likewise, if I needed cash from the cashpoint (which I always travel past), I would take the opportunity. But the vehicle has not left the drive for anything other than for the delivery round.
I would like to thank everyone who has offered advice, it is much appreciated.

agent_orange_2

Thank you Jimmo. I take your point, it would seem quite unusual. The car that I use was originally my sons, he had an accident where a claim was made on his insurance and he decided he couldn't afford to renew his insurance. I'm now the regisitered keeper of the car. I'm basically keeping the car on to carry out the delivery job. It just seems that if I keep and maintain the car and only claim for 40p per mile tax relief I will be well out of pocket.
I can do without the headache of a enquiry though, so I think I'll just leave it at that.

A genuine thanks for your help