High day rates for corporate and fleet training, an expensive training vehicle, DVSA fees and B2B invoicing. Here's how Making Tax Digital for Income Tax applies to HGV and LGV instructors, and when it starts.
MTD for Income Tax is measured on gross income before costs. On typical corporate and fleet training rates, most instructors are over £50,000.
Most instructor income is invoiced to fleets and training providers, so your records are naturally tidy. MTD is simply about reporting those invoices and your costs each quarter instead of once a year.
Your annual Self Assessment return is replaced by four short quarterly updates and a year-end final declaration, all through recognised software.
Record the training vehicle separately so capital allowances, not a one-off expense, are applied.
An expensive asset claimed through capital allowances. Record the finance so the right allowance applies at year-end.
Most work is invoiced to fleets and training firms. Record each invoice and it totals into your quarterly update.
DVSA fees, registration and specialist insurance are deductible. Keep them recorded so nothing is missed.
Fuel and maintenance on a big training vehicle add up. Snap the receipts so your profit is realistic.
Your work is already invoiced, so the records almost keep themselves. Clear Books brings them together and gives HMRC exactly what MTD requires.
Record your training work and vehicle costs as you go, and send your first quarterly update in minutes.
