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Limited cost trader - courier

fuel evidence requirements

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I have a self-employed courier, who is considering a) incorporation and b) VAT registration. It would be a voluntary registration.

1. Assuming he stays self-employed, how do we evidence that fuel costs are greater than 2%, when he's claiming mileage. Is simply using the HMRC approved rates?

2A. If he incorporates, presumably the vehicle (van) would need to be sold to the ltd in order for it's fuel to be counted, otherwise the fuel spend wouldn't be the traders?

2B. Would other van costs (repairs etc) count?

Anything else I should consider?

Thanks

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14th May 2019 17:52

Couriers are in the transport sector.

They're not limited cost traders.

The flat rate was 10% last time I looked.

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to lionofludesch
14th May 2019 18:05

Doesn’t limited cost traders envelope anyone who can’t meet the 2% / £250 rule, irrelevant of which FRS category they fit into?

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to atleastisoundknowledgable...
14th May 2019 18:14

atleastisoundknowledgable... wrote:

Doesn’t limited cost traders envelope anyone who can’t meet the 2% / £250 rule, irrelevant of which FRS category they fit into?

No.

There are exemptions, of which transport is one.

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to lionofludesch
14th May 2019 18:28

Excellent news, thank you!

Do you know what the other exemptions are?

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to atleastisoundknowledgable...
15th May 2019 07:59

I'd have to look it up.

The weird one for me is garages can't count vehicle related costs - even though most of the parts they fit will be for customers' cars. Effectively, it bans garages from the FRS.

I've no idea what all that's about.

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