Self Employed Driver

valhallauk

Hello,

I have recently started driving on an ad-hoc basis for a few different coach and truck companies. I am wondering about a few things regarding being self employed while doing ad-hoc work.

Firstly traveling between companies - what can I claim regards fuel/insurance/car finance repayments. Some of the distance involved can be from 100-200 miles round trip everyday traveling to jobs. Does HMRC allow this kind of claim with the 45p per mile to get to the jobs?

Other expenses, what can be claimed back with likes of mobile phones, hotel costs, meals.

Also would it be best to have a business bank account to keep everything seperate from my normal day to day life.

I have already started doing work, invoicing for every job that I do, keeping records of fuel, milage of the car start and finish and fuel receits.

I will be planning on keeping all records myself for the tax return but would like to know any basic stuff which to include that I may have overlooked.

Thanks for any input on this.
Daniel

John_Pierpoint

You don't say how "part time" this self employment is ?
Do you have a PAYE job as well?
Have you registered as self employed for National Insurance? That registration marks you as self employed for HMRC.

Your place of business is also your home (unless you are something like a milkman who goes to the same depot everyday to pick up the float).
The moment you get out of bed you are "working" - thinking how to minimise costs and maximise profit.

It is important to keep business transactions separate from your private ones, use a different bank account. You would not want the tax man picking over you private transactions.

Of the expenses you are thinking about already, food is likely to be problematical, as the tax man knows we all have to eat to live and will be reluctant to agree to helping pay for lunch. (HGV drivers can make modest claims).

It will be January 2014, assuming this self employment started on or after 06apr12, before you will start catching up with tax payments, so you have lots of time to absorb the rules.
Have in your mind that when the system catches up with you, for every extra pound you earn the tax man will want about 30%, and you will be paying in advance "on account" of your self assessment tax return. The theory is that your enterprise will continue just as profitably, into a never ending future.

Others will be along to advise you on their experiences and there are lots of examples on here already for you.

http://lmgtfy.com/?q=%E2%80%9CSelf+Employment+tax%22+site%3A+forums.moneysavingexpert.com

http://www.hmrc.gov.uk/incometax/relief-self-emp.htm#1

Good luck with your new venture.

MacMickster

I suspect that it will be difficult to get HMRC to accept that you are a self-employed driver if you are not providing the vehicle to be driven yourself. They are more likely to regard you as having several casual employments at the same time.

valhallauk

Hello,

Thanks for the replies

This job will be aprox 4 days per week so will basicly be full time hours when you add up all the work between every company I work for. Each company I work for im only there covering staff holidays, sickness and in the event that there is extra work needing covered.

I have just transfered from PAYE in one job to self employed after a downturn in work. If I was working for other companies I would not get my tax free allowance working else where when I am still PAYE on the first job when there is no work there. This is why I have gone SE to pay my own tax and NI.

I am currently in the process of registering to be SE and I am awaiting confirmation from HMRC regarding the status.

The difference between me and the milkman is that I travel to different companies to carry out the work for them using there vehicles. Some days I am at home until the phone rings or until I can chase up any available work.

As for the claims for food, The only ones I would be claiming is overnight stays, which are few and far between. Lunch would be from my own money since even on PAYE that is whats expected.

That is also the other problem is making sure the HMRC class me as self employed doing this kind of work. Would the HMRC beable to advise over the phone regarding this type of working?

Hopefully I can solve all the small problems and carry on with my plans as full time work can be hard to find sometimes, and this way I can continue full time work when controlling my own working hours, and picking the best paying work at the same time.

Thanks
Daniel

John_Pierpoint

Obviously I don't know your personal circumstances - if you have the physical space or the network of contacts:
How about buying a vehicle of your own?
Though you are qualified to become an owner operator of an HGV/LGV, that would involve considerable expense and regulatory hassle.
How about something like a Luton Transit and then advertise your self as "man with a van". That would help keep HMRC off your case and give you a fall back position for weekend and slack days' work. I'm sure that there are plenty of people in your situation, who would be prepared to drive your van on days when you are driving the HGVs?
I believe there are some very sensible "Lutons" about at keen prices, as long as you don't need to bring one into London, now that the emissions zone includes large vans.