Owner truck drivers have the same fundamental rights as any business owner, which means that they are permitted to deduct their expenses from their earnings. The difference is in the detail. Every business works on the same essential principles, but within that outline, every type of business is different.
A lot of non-business people do not understand how this works and to be fair, it does work differently in different countries. Here is a simple example: if you earn 400 and 100 is expenses and the tax rate is 25%, you will still pay tax: 400 earnings - 100 expenses = 300 profit x 25% tax rate = 75 tax.
Not as a lot of people think: 400 earnings x 25% tax rate = 100 tax - 100 expenses = zero tax.
With no expenses, the tax bill would have been: 400 earnings x 25% tax rate = 100 tax
Therefore, in this instance, you still need to pay for 75% of your expenses yourself. Obviously, the way to save money is to cut down on expenses. As we all know, this is easier said than done.
Since the truck is the largest single expense, you should start there. Hunting around for the best deal is second nature when it comes to buying a vehicle, but it is doubly important, when the vehicle is as costly as a truck.
Regrettably, these are very hard times and many firms are going to the wall, but this does create opportunities to the owner-driver. There are tremendous deals on second-hand trucks, if you do your homework and have the truck thoroughly checked before you buy it.
You can off-set the interest you pay on the finance against profits, but you should definitely go for the best deal you can here as well. Try getting a better deal by bundling several insurances into one or try putting all your insurance policies with one broker for a higher discount. Or even do away with the broker (middleman) and go directly to the insurer.
Maintenance is cheaper than repair and it is allowable. It is also cheaper to take a number of common parts with you than have to rely on expensive emergency call-outs.
Fuel is a gigantic cost, so can you get a fuel card on the routes you drive? If not, pay for everything with a credit card that offers rewards, but pay off the card every month without fail. Pay by direct debit to make sure. Use it only for business.
Taking a shower can be expensive, up to $10 a time, twice a day. Using your own towel, soap and shampoo can bring this cost down, but some garages offer free showers, if you purchase a minimum volume of fuel or oil.
Eating healthily is also expensive on the road. This could make it a good idea to mount a refrigerator in your cab and fill it up where food is cheap and handy. Cutting down on fry-ups and steaks and consuming more fruit would be healthier for most drivers in any case.
Owen Jones, the writer of this article writes on lots of topics, but is currently involved with truck sat nav systems. If you would like to know more, please go to our website at Laser Temperature Gun.