It is that time of the year when tax returns are due and self-employed people have by law to file-in a self-assessment form, including a number of UK self-employed delivery men and women.
HMRC more casually coined as the Taxman, can Tax Refund claimed expenses related to logistics, such as transports, car related expenses improving a small business bottom lines.
These countless delivery transport services which have been popularised are part of a wider and complex supply chain management. Indeed behind one delivery men there is a flux of services to ensure the flow of this supply chain.
Nowadays many companies dealing with logistics try to differentiate themselves to offer best prices, and/or best services, in the end they all deal with unwanted and unknown situations which negatively affect the flux of the supply chain, from time to time. Mitigating these risks has become a part of the management of the supply chain.
Defining Logistics Services
We can generally define logistics services as a part of the supply chain management that ensures the flow of goods/services from warehousing to consumption. So logistics services includes transport but also the warehousing of goods.
Transport or transportation of goods from one point to another can be done in various ways. These are named mode of transports for instance air, road and water that are usually defined by infrastructures such as airways, roads and waterways. Without doubt transport is and has long been at the centre of modern trade and business.
With the increase of globalisation, the cost of transport is becoming an environmental concerns world over. Promoting relatively recent government regulations in the United Kingdom in relation to targets on cutting CO2 emission.
How to encourage businesses to use logistics transport in a more environment friendly way?
One of the many ways on saving on tax is through the government scheme to boost environmental targets on CO2 emission, with tax related incentives to encourage the purchase and the use of environmental friendly cars.
There are various ways to evaluate the warehousing of goods and the actual stock can rapidly change value which can affect a business bottom line namely the profit. In other words the price of a particular stock can vary in time according to the demand for this stock, affecting the profit that can be made from it with direct impact on tax.
If profit increases or decreases tax likewise increases or decreases. It is simple mathematics the more profit you make the more tax you pay and vice-versa the less profit you make the less tax you pay. So an attractive offer is to refund taxes when purchasing environmental friendly cars, improving businesses bottom line.
To sum up, logistics services can have a positive effect on a business bottom line when considering transportation tax incentive and tax saving in relation to warehousing operations.
A business supply chain management can virtually be made profitable taking into account tax reduction and in turn benefit society as a whole with environmental measures for the reduction of CO2 emissions.