Typical Tax Deductions For Owner Operator Truck Drivers

Submitting one's tax papers are a compulsoryremain on the road, you are allowed to off-set
responsibility for many people, but for morethat against your income. The same goes for
people, they are a way of reducing the moneycleaning, washing and maintaining the truck, but
that they have to pay the state. It depends onyou must keep all the bills.
which country you come from. In some countries,No tax man will believe you without them. Meals
people pay no tax until the end of the tax year,and over-night lodgings are also tax-deductible, but
in others, workers pay a fixed rate, say 25%, ofagain, receipts are an total necessity.
everything they earn, but settle up with the stateMany people think that they can claim for clothing,
at the end of the fiscal year.but this is a difficult point. You are only permitted
They settle up by filing their tax returns, whichto claim for working clothing that can only be
basically means claiming tax relief for expensesused wholly and exclusively for work. Overalls are
that they have incurred in the completion of theira good example, as are steel toe-capped boots
work. It is the difference between what anor wellingtons. A sleeping bag is dubious.
employed person earns using the boss' tools andFines or traffic tickets are not deductible, because
a self-employed person earns using their ownthey were your responsibility. Likewise sollicitors'
tools. After all, a boss would claim for everyfees combatting them - unless you win. However,
shovel that employees use, so why should aif you fight and lose, you may incur penalties
self-employed person have to pay for his ownfrom the tax office. Sometimes it is easier, and
shovel?cheaper, to just pay up, unless it threatens your
The same is true of owner operator truckdriving license.
drivers. So what are the kind of expenses that anFuel bills are a large part of most drivers'
owner operator truck driver can claim for?expenses, so it essential to keep a close eye on
First and foremost is the reduction in the value ofthose receipts. It is a good idea to pay for fuel
the truck itself. The rate at which this iswith a fuel card because then you have a
permissible differs from country to country, but inpermanent, re-retrievable record of them.
many it is 25% of the value of that truck perMobile phones, sat nav and laptops are necessary
year, based on the current price. You will also beto many drivers, but authorities take a particular
able to deduct 100% of the interest charges onview on them. Some allow 100% deduction,
the loan that you took out to buy the truck.others allow only 25-50%, because they assert
This can get quite complicated if you want to sellthat they can be used for purposes non-essential
the vehicle before it can be called 'written off' into carrying out your job. Calls on the cell phone
the terms of the law. However, whatever youmay have to be justified for similar motives.
get for the vehicle has to be considered asYou may get away with claiming for air-con and
income after the vehicle has been written off.even a refrigerator to keep your food cool or a
You will have to take advice on this subjectspecial ergonomic seat for your back, but do not
because it is very complicated, varying fromrely on it.
country to country. The main point is that youIn general, the allowances for owner operator
are not permitted to deduct the total paymentstruck drivers are fair, but you cannot condemn
for the truck, only the interest.the authorities for questioning some of the
Another major cost that drivers can claim backoutrageous claims that some drivers make.
are road charges. If you have to pay anything to