Accountants for Transport and Courier Companies

Vans and lorries are plant and machinery, so a company can usually claim the Annual Investment Allowance on qualifying expenditure up to £1 million a year. Full expensing may also be available for qualifying new and unused plant bought by companies. Cars are treated differently and generally use writing-down allowances based on emissions, with first-year allowances for qualifying zero-emission cars.

Assets bought on hire purchase can usually qualify for allowances when brought into use, while leased vehicles generally give relief for the lease payments instead.

Business fuel and running costs are generally allowable for the company. If a van is available for an employee's or director's private use beyond insignificant private use and ordinary commuting, a van benefit charge can apply, plus a separate fuel benefit where private fuel is provided. Keep usage records.

Courier and delivery drivers may be employees, workers or self-employed, depending on control, substitution, use of their own vehicle and how work is allocated. The answer affects PAYE, National Insurance, holiday pay and minimum wage obligations, and tribunal decisions in the sector have shown how fact-specific it is.

Most UK transport services are standard-rated. International freight transport and related services can be zero-rated where the conditions are met. Delivery-platform and contract statements should be reconciled to gross income, with deductions for fuel cards, insurance or equipment recorded as costs.

A transport and courier company files statutory accounts at Companies House, normally nine months after its accounting reference date, and a CT600 within 12 months of the end of its Corporation Tax accounting period. Most smaller companies pay Corporation Tax nine months and one day after the period ends; the main rate is 25%, with the 19% small profits rate up to £50,000 and marginal relief between £50,000 and £250,000.

VAT registration is required once taxable turnover passes £90,000 in a rolling 12 months, or is expected to within 30 days. Paying any salary, including to a director, brings PAYE and Real Time Information reporting, and employing eligible staff brings automatic-enrolment pension duties. The confirmation statement is a separate annual filing.

Thresholds, rates and deadlines reflect the 2026/27 UK position at the content update date. Check current GOV.UK guidance, or ask us, before relying on them for your own company.

We start with a free consultation to understand how you invoice, buy, pay people and get paid. You then receive a written scope and fee before chargeable work begins, covering bookkeeping, VAT, payroll, year-end accounts, CT600 and director Self Assessment as agreed.

Advisory work such as management accounts, cash-flow forecasting, pre-year-end planning or specialist reliefs is quoted separately rather than assumed to be included. Where a question needs specialist legal or tax advice outside our scope, we say so.