Self employed Courier

Self employed Courier

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I have a new client working as a courier. The main courier company only pays him for a one way journey. The costs of getting home are down to him. Can he legitimately claim the mileage allowance at 40p then 25p per mile?

He uses his own van and pays for his own fuel. He is better off claiming mileage but should he be claiming actual costs instead?

By claiming mileage, especially the 40p rate, he is actually incurring more costs than the courier company pay him for the one way delivery. Doesn't seem right.
Peter

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By Sherman Holter
07th Aug 2008 15:48

£ 2.86 per hour
I calculated that my only courier client was earning £2.86 per hour.

I told him this and then used every opportunity to encourage him to go and find a real job.

"Fortunately" he ultimately wrote his van off in an accident and then decided to follow my advice.

I saw him recently and he looks so much better. I've lost a client but I'm happy I gave him the right advice.

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By User deleted
07th Aug 2008 15:01

Thanks for the replies
No he has not reached the VAT limit.

Doesn't seem right somehow that while claiming the 40p per mile he makes a loss on his work but swings into profit when the rate reduces to 25p.

Do other couriers work in this way? if so is it actually worth doing this kind of work?

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By User deleted
07th Aug 2008 11:37

Yes
He includes the mileage paid by courier co as part of his turnover and then
decides whether to claim 40p p mile.
Note he cannot use this route if he has previously claimed ca on
van, I presume that he has not reached vat limit

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By geoffwolf
07th Aug 2008 04:32

WHY BOTHER
The info you've given would suggest that your client is not making sufficient to cover his costs and make a profit, so why are the courier company not charging their customers enough?

What is the point of running at a permanent loss?

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