In The Driving Seat
Looking out from our office window onto the A26 heading to Tonbridge in one direction and Tunbridge Wells in the other with busy traffic in both directions, the pandemic period when the roads were quiet seems a lifetime away.
What we are noticing more of is vans busy making deliveries and figures from the Department of Transport confirm this – van traffic in 2023 was 8.1% higher than 2019.
Here at Lewis & Co we have a number of clients who are professional drivers – including van drivers to haulage drivers, taxi drivers and motorcycle delivery drivers. While we’ve written before about allowable expenses for anyone using their car for work purposes, it might seem a little more complicated when the vehicle is basically your office. But, in many ways it isn’t.
If are self-employed but have a workspace away from your home (such as a shared office space) you can’t claim for the miles from home to your office. However, if you then go to visit a client, you can claim for that mileage. It’s the same for a professional driver. For instance, you can’t claim for the miles from your home to a taxi rank at the station, for instance, for you can claim for the miles you drive with a customer in your cab.
When driving a taxi, you can claim the usual flat rate of 45p per mile. However, as you are driving professionally, then you are likely to come up against the first 10,000 rule. After you have completed that number of miles, you can only claim 25p per mile.
As a self-employed driver, you can claim for the maintenance and servicing of your vehicle. If you are self-employed and not a professional driver, this would not generally be the case. In theory, you can also claim for your vehicle insurance and road tax, as well as parking and any tolls incurred when driving with a fare onboard.
Another area which is allowable as an expense is the cost of cleaning your taxi or executive vehicle – as having a presentable vehicle is part and parcel of your role. In addition, like any self-employed individual, you can also claim for associated office supplies and the business portion of your phone bills etc.
We are sometimes asked if a client can claim the whole cost of purchasing their vehicle. Generally, capital allowances will give you tax relief on some of the assets you might purchase within your business. This can be quite complex but, generally, for most taxi drivers, the rate is 18% per annum. While we don’t currently have any clients who drive black cabs (or Hackney Carriages) they are actually eligible for a 100% Annual Investment Allowance (AIA). Capital allowances can be quite complex and we’re here to help if you have any questions.
Some of our clients who are taxi drivers are self-employed but drive for another firm. In which case, they are expected to pay a fee to the company which gives them the work. Again, we can help with any questions related to what you can claim for in this instance.
When it comes to lorry drivers who are expected to drive long distances, they could typically end up spending a few nights away from home each week. If this is the case, you can generally claim hotels as expenses, as well as subsistence – meals and coffees etc. Some large trucks have their own accommodation onboard and, in which case, drivers can usually claim for washing their sheets away from home or paying for showers etc at service stations.
Please do get in touch if you have any questions about tax as a professional driver: 01892 513515.