Specialist Accountants for Transportation & Travel

Sole traders can use HMRC simplified mileage rates: 45p per mile for the first 10,000 business miles and 25p thereafter (cars). For motorcycles it's 24p per mile and bicycles 20p per mile. Alternatively, you can claim actual costs (fuel, insurance, repairs, finance interest) proportioned between business and personal use. For HGVs and larger vehicles, actual cost method is usually more beneficial. Limited companies should use actual costs or advisory fuel rates for company cars. We'll compare both methods and recommend which maximises your claim. See self assessment services.

Commercial vehicles (vans, lorries, HGVs) qualify for 100% Annual Investment Allowance up to £1 million per year, meaning you can deduct the full cost in the year of purchase. Cars have different treatment based on CO2 emissions: under 50g/km qualifies for 100% first-year allowance; 50g/km or less but purchased before April 2025 qualifies for 18% main pool; over 50g/km goes into the special rate pool at 6%. Full expensing also provides 100% relief on new and unused qualifying plant and machinery with no upper limit. View corporation tax services.

To hold a standard operator's licence, you must demonstrate financial standing to the Traffic Commissioner. The current rates are £8,000 for the first vehicle and £4,450 for each additional vehicle (standard national/international licence). For restricted licences, the amounts are £3,200 for the first vehicle and £1,800 for each additional. This must be available at all times, not just at application. We prepare the financial evidence — typically bank statements or accountant's letters — to support your O-licence. Explore annual accounts.

TOMS is a mandatory VAT scheme for businesses that buy in and resell travel services (accommodation, transport, car hire, excursions) as principal. Under TOMS, VAT is calculated on the profit margin (selling price minus cost of bought-in travel services) rather than the full selling price. TOMS only applies to supplies to the end traveller; B2B supplies are outside TOMS. You must perform an annual TOMS calculation and adjustment in your VAT return. We handle TOMS calculations and ensure correct treatment of in-house vs bought-in supplies. Learn about VAT services.

App platforms (Uber, Bolt, FreeNow, Ola) provide detailed earnings statements. Record the gross fare (before platform commission) as your income and the platform service fee/commission as a business expense. This gives accurate revenue figures. If VAT-registered, note that the platform may account for VAT under the "deemed supplier" rules. For income tax, the gross amount is your turnover. We reconcile platform statements, track all expenses, and ensure accurate reporting. Explore cloud accounting.

For transport businesses, a limited company is usually recommended because it provides limited liability protection — crucial in a sector with significant third-party risk. It's also often more tax-efficient for profits above £50,000 and may be required by larger freight contracts. Sole trader status suits smaller owner-operators with lower risk profiles. Partnerships are common for family-run haulage firms. We assess your turnover, risk exposure, contract requirements, and profit levels to recommend the optimal legal structure. View company formation.