Self Employed Parcel Courier Expenses

paulmoscrop

Hi
New here and looking for some advice.
I am considering becoming a self employed delivery driver with a local company. I would be self employed and sub contracted to them.
They supply me with a van at a cost of £180 per week and they pay me per mile for all business miles driven. 

What I was wondering is - would I be able to claim any expenses for having to hire a vehicle from them to do the job and claim this on my tax return? 

New to the whole self employment side of things so not really sure.
Hoping someone on here knows!
Thanks.

LilElvis

paulmoscrop said:

Hi
New here and looking for some advice.
I am considering becoming a self employed delivery driver with a local company. I would be self employed and sub contracted to them.
They supply me with a van at a cost of £180 per week and they pay me per mile for all business miles driven. 

What I was wondering is - would I be able to claim any expenses for having to hire a vehicle from them to do the job and claim this on my tax return? 

New to the whole self employment side of things so not really sure.
Hoping someone on here knows!
Thanks.

Yes, you would be able to claim back the vehicle hire as a business expense - and the fuel. Make sure that the mileage they pay you will cover the cost of fuel - if it's an Amazon type job where you're often only driving a few hundred metres between drops the fuel economy is going to be appalling compared to a handful of deliveries per day with dozens of miles of driving between customers.

paulmoscrop

LilElvis said:

paulmoscrop said:

Hi
New here and looking for some advice.
I am considering becoming a self employed delivery driver with a local company. I would be self employed and sub contracted to them.
They supply me with a van at a cost of £180 per week and they pay me per mile for all business miles driven. 

What I was wondering is - would I be able to claim any expenses for having to hire a vehicle from them to do the job and claim this on my tax return? 

New to the whole self employment side of things so not really sure.
Hoping someone on here knows!
Thanks.

Yes, you would be able to claim back the vehicle hire as a business expense - and the fuel. Make sure that the mileage they pay you will cover the cost of fuel - if it's an Amazon type job where you're often only driving a few hundred metres between drops the fuel economy is going to be appalling compared to a handful of deliveries per day with dozens of miles of driving between customers.

Thanks. It is an Amazon based contract. The company I’d be working for pay me 18p per mile. Could I claim fuel on top of that? 

And would need to get a receipt/invoice every week for the van to submit along with my tax return? 

paulmoscrop

LilElvis said:

paulmoscrop said:

Hi
New here and looking for some advice.
I am considering becoming a self employed delivery driver with a local company. I would be self employed and sub contracted to them.
They supply me with a van at a cost of £180 per week and they pay me per mile for all business miles driven. 

What I was wondering is - would I be able to claim any expenses for having to hire a vehicle from them to do the job and claim this on my tax return? 

New to the whole self employment side of things so not really sure.
Hoping someone on here knows!
Thanks.

Yes, you would be able to claim back the vehicle hire as a business expense - and the fuel. Make sure that the mileage they pay you will cover the cost of fuel - if it's an Amazon type job where you're often only driving a few hundred metres between drops the fuel economy is going to be appalling compared to a handful of deliveries per day with dozens of miles of driving between customers.

Also, how much could I claim for the van rental? Would it be the full £9360 (£180x52)?

Lomast

Just wanted to make sure you understand you won't actually be claiming the expenses back they will be offset against your profit so you only pay tax on profit (income - claimable expenses)

paulmoscrop

Lomast said:

Just wanted to make sure you understand you won't actually be claiming the expenses back they will be offset against your profit so you only pay tax on profit (income - claimable expenses)

Yes. What’s confusing me is - I will be subcontracted to a company who will pay me every 2 weeks. On the invoice will be what my earnings are and then deductions for the van rental.

If that is the case, do I still need to put these expenses on my tax return?

MinuteNoodles

Seriously go pay for an hour or two with a tax accountant who can explain it all to you.