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    Taxi Drivers

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    Accountants for Taxi Drivers 

     

    Whether you are working in a black cab or for a private taxi firm, the vast majority of taxi drivers are self-employed. A good way to start out as a taxi driver is through working for a taxi firm on a freelance basis. The taxi firm will already have a strong customer base and will send out jobs to whichever of their drivers is nearest to the customer who needs collecting.

    Working on a self-employed basis has numerous benefits such as the independence of being your own boss and picking your own working hours that fit around your home life.

     

    You’re Benefit’s and Allowances

     

    Claim capital allowances on the original cost of the vehicle, interest and other charges count as business expenses.

     

    Taxi Running Costs

    Taxi drivers should enter fuel costs in sales not motoring expenses. Do not claim fuel expenses in the taxi accounts when you are on holiday, the revenue will check should they inquire into your self assessment tax return. Taxi running costs also include repairs, servicing and parts including tyres, road tax, taxi insurance and AA/RAC membership. Include radio hire and taxi office costs in general administrative expenses.

     

    Household expenses

    If you run your taxi business from home you can claim a proportion of household expenses as business expenses in the taxi accounts. Household expenses are likely to be disallowed unless they are either specific to the business or a specific area of your home is devoted entirely to your taxi business. Using part of a room part time would not be sufficient to include the household expenses in the taxi driver accounts.

     

    Spouse Costs

    You can claim expenses for partners who work for your taxi business and payments up to 100 pounds per week would not attract income tax or national insurance however any payments claimed in the taxi driver accounts must be real payments for real work done. The Revenue naturally adopt a strict view on taxi expenses claimed for partner work as it is an area some people might use to reduce the tax liability. Care is required to justify the partner as an expense.

     

    Other benefits:

     

    • The ability to reduce your tax bill through claiming expenses such as vehicle hire, fuel costs, repairs and insurance.
    • The flexibility to work as many hours as you want depending on your personal circumstances.
    • Through working on a self-employed basis you will be paid for each taxi journey that you complete.

     

    JR Financial Accountants is here to remove the hassle, avoid the last-minute panic and the late penalties. Please feel free to CONTACT US FOR FREE INITIAL CONSULTATION.

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