Franchise and route fees, a leased van, high fuel and self-billing invoices from the platform. Here's how Making Tax Digital for Income Tax applies to parcel and owner-drivers, and when it starts.
MTD for Income Tax is measured on gross income before costs. A leased van and full tank each day mean your gross pay is well above your profit.
When the platform self-bills you, each statement is a clear digital record of what you were paid. Bringing those into your accounts means your quarterly figures reconcile straight to your pay.
Your annual Self Assessment return is replaced by four short quarterly updates and a year-end final declaration, all through recognised software.
Record the gross route value and the fees separately so you're taxed on the profit, not the headline figure.
Platform statements are ready-made income records. Bring them in and your quarter reconciles to your pay.
Fees deducted by the platform are expenses. Record them so you're taxed on profit, not the gross route value.
How you claim the lease depends on your vehicle method. Keep the agreement and payments recorded.
Fuel, insurance, parking and phone add up over a full round. Snap receipts so nothing is left out.
You're out delivering, not doing admin. Clear Books lets you keep records from your phone and gives HMRC exactly what MTD requires.
Bring in your self-billing pay and log your costs as you go, and send your first quarterly update in minutes.
