Taxation of additional income from food delivery

[popensior]

Hey everyone,

Recently started delivering food with one of the apps as a part-time weekend job alongside my full-time job. I aim to make about 3,000-4,000 extra this year.

From what I understand, since this income is under 5,000, I can just declare it via Form 12 as additional income - correct?

Now, I’m trying to figure out the best way to calculate my net profit. I know I can deduct expenses like fuel, insurance, but what about car depreciation? Since I don’t use my car much outside of deliveries, most of the mileage now comes from this work, and some parts will wear out faster.

Can I deduct depreciation to lower my taxable profit? How do I properly account for the business-use portion?

Would appreciate any advise on that, thank you.

 

[ClubMan]

I know I can deduct expenses like fuel, insurance

Are you sure about that?

 

[jpd]

You need to calculate all your car expenses for the year- petrol, insurance etc

Them apportionment the amount to your business by mileage

Depreciation is not allowable

 

[popensior]

Are you sure about that?

That's what I understood from the Guide to Completing 2023 Pay & File Self-Assessment Returns

Expenses and Deductions
137. Motor, Travel and Subsistence - include fuel, tax, servicing, repairs, insurance, travel and subsistence reimbursed to staff including motor expenses, country money, etc.

Feel free to share your insights on this

 

[ClubMan]

That's what I understood from the Guide to Completing 2023 Pay & File Self-Assessment Returns

But isn't that for self assessment and you're hoping to continue doing a PAYE "Form 12" return? Are such expenses still allowable if you're not self assessed?

 

[mathepac]

Have you declared this new activity to your insurance company?

 

[popensior]

Have you declared this new activity to your insurance company?

Yes

 

[torblednam]

But isn't that for self assessment and you're hoping to continue doing a PAYE "Form 12" return? Are such expenses still allowable if you're not self assessed?

Yes, they're still allowable. The type of tax return you're required to complete doesn't change the nature of, or computational rules applicable to, your income.