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Can a backup vehicle be submitted as an expense for a self employed delivery agent ?

Posted: Tue Jun 19, 2018 8:58 pm
by rogerharris
Hi, I am a self employed courier/delivery agent. Previously with hermes but now with deliveroo and ubereats due to the better conditions and pay.

One of the biggest headaches I am having is keeping this running with just one vehicle, as when it breaks down it can be up to a couple of weeks before its resolved. Unless I go to main dealer but its four to eight times the cost than with the cheaper ones I do some of the diagnostics, buy the parts...sometimes used parts, prep the job myself. All this means double whammy of repairs and loss in wages, and the stress of being stuck in when this is all happening. It’s a bit too much and makes the job impossible as I had multiple breakdowns this year, almost 5 weeks in lost earnings.

Newer vehicles, lease or hire is too expensive on tight earnings, So I need to have some type of older backup vehicle that’s kept off the road then taxed and put on temporary flexible weekly insurance like Cuvva. Yes both vehicles could go, but I am good with mechanics enough that if its not being used much I can keep it in good order. Having a backup at least reduces the likelihood of being off the road quite a bit and acts as a cushion. The costs of the backup vehicle are the capital cost itself, depreciation then the tax and insurance when its used, yearly MOT and maintenance. I calculated it all and its affordable but only if it becomes an expense.

Can I submit purchase and running a backup vehicle as a justified expense in the circumstances ? I don’t want to delve into buying it until others with similar experience can advise if they were able to do the same thing under these similar circumstances ?

Re: Can a backup vehicle be submitted as an expense for a self employed delivery agent ?

Posted: Tue Jun 19, 2018 9:18 pm
by fmspet
Unlikely as you would need to prove it was used as a works vehicle to satisfy HMRC, what you can do when your is off the road is hire a vehicle to cover your work.
The alternative would be to buy another vehicle and rent it out for A N Other to deliver in a charge them a rental fee

Re: Can a backup vehicle be submitted as an expense for a self employed delivery agent ?

Posted: Tue Jun 19, 2018 10:43 pm
by rogerharris
it would be a works vehicle. Its more of an accounting problem, this week I had 5 weeks of in total lost wages due to being off the road. But my earnings are low and I looked at hiring from many angles then realised that having the second vehicle would be more cost effective and less hassle than dealing with hire companies. Also the second vehicle wont depreciate much if its already under £1000 to buy and not being used a lot.

Just wondering if anybody had submitted a second vehicle as expenses like this. I am actually considering the second vehicle being a motorcycle as I can do deliveries this way. Wont be great in winter but better than being off the road.

Re: Can a backup vehicle be submitted as an expense for a self employed delivery agent ?

Posted: Wed Jun 20, 2018 4:32 pm
by ZERO7
;) In theory......... you can have as many vehicles as you like, but as FMP said, justifying it to hmrc could be a headache? I am also in agreement with hiring short term..... it is going to be less of a faff.There again, if it's a small van that would be ok ? ;)