Courier & Transport Firms Urged To Sort Tax Returns

25 March 2009 by Sandra Patterson - © Hellmail.co.uk

2008-9 has been one of the toughest ever trading years for anyone involved in the courier services, deliveries or road transport industries.

Staggeringly high fuel prices, and a recession that has put many couriers out of business because of the drop in demand for deliveries. There is however one step that you should all be taking now, and that is to get your 2008-9 accounts, and tax returns, completed and submitted as soon as possible.

The Self Assessment tax that you paid in January 2009, and the payment due in July 2009 is a payment on account for the 2008-9 tax year, with the balance and tax return due 31/1/2010.

However, the payments made are based on your profits for the previous year. 2008-9 saw record high fuel prices, a recession, and the introduction of a new Annual Investment Allowance for anyone that bought vans during the year. This means, that for many couriers and transport businesses, 2008-9 profits are likely to be lower than the previous year.

Boxby therefore recommends that you get your accounts and tax returns in as early as possible this year. The 2008-9 tax year ends in a few days time, and you can submit your return anytime after then. If your taxable profits for 2008-9 are lower than the previous year then you can reduce your payment on account due in July, and if your business has made tax losses then you can usually apply for a repayment of tax.

Even if your business is doing well, this still may be relevant to you. The government Annual investment allowance can into being in April 2008, meaning that the first £50,000 of qualifying capital expenditure can be set against your taxable profits in full. Vans are classed as qualifying expenditure (unlike cars), and there are no requirements to meet environmental standards either. So, if your courier company has been buying Vans this year, you too could benefit from an early tax return submission to reduce your July tax payment on account.

Running a courier business during a recession is tough enough job, without overpaying tax as well. So do yourselves a favour and get your accounts and tax returns sorted now and not at the end of the year.