Owner-driver contracts, per-drop pay, high fuel and mileage and van finance. Here's how Making Tax Digital for Income Tax applies to courier and multi-drop drivers, and when it starts.
MTD for Income Tax is measured on gross income before costs. With high mileage and a van to run, your gross pay is a long way above your profit.
Fuel, tyres and van finance take a big bite out of courier pay, so your gross is much higher than your take-home. Since MTD tests the gross figure, it's worth checking where you stand.
Your annual Self Assessment return is replaced by four short quarterly updates and a year-end final declaration, all through recognised software.
Your weekly pay statements make good records; bring them in so your quarterly income is complete.
With high mileage, the flat rate versus actual costs decision has a real impact. Compare both and keep the records.
Pay per drop or route is income recorded as you're paid. Weekly statements total it for the quarter.
Both are significant. How you claim them depends on your vehicle expense method, so keep the paperwork.
The small stuff adds up across a busy round. Snap receipts so nothing is left out.
Between drops is no time for spreadsheets. Clear Books lets you keep records from your phone and gives HMRC exactly what MTD requires.
Bring in your pay and log your costs as you go, and send your first quarterly update in minutes.
