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Did you know that as a taxi driver, you are more likely to be investigated by HMRC than most other professions? While this seems unfair, the system is open to abuse, but most of the problem lies in the fact that many taxi drivers are either too busy to handle their accounts or become bogged down in all the complex tax rules.
In the past, most taxi drivers were employed by a taxi firm, so their tax was sorted out through PAYE. These days, however, you're more than likely to be a self-employed contractor, meaning that you have to sort things out yourself.
While some people are happy to do this, others hire an accountant to handle things. At Auditox Accountancy, we recognise how demanding it can be to fulfil your work obligations and then find the time to deal with tax returns and day-to-day accounts.Our specialist team of accountants for taxi drivers will take away all the hassle, leaving you with more free time to spend on other priorities.
Whether you're a self-employed driver or you own a taxi business, our comprehensive accountancy services cover all aspects of accounting and tax matters relating to this field.
Here are a few examples of how we can assist you:
All self-employed persons (also known as sole traders) earning more than £1000 must complete self-assessment returns every tax year.
This calculates your taxable income, so it's essential that the figure is accurate on your self-assessment return. While you can keep the amount down by claiming business expenses, you need to make sure you only claim for items allowed by HMRC* if you want to avoid penalties or an in-depth investigation into your financial affairs.
*While there are several expenses you can claim for - such as fuel costs, road tax, repairs, MOT, cleaning, services, etc. - there are many that don't apply. For example, you can claim expenses for a smartphone, but only if it's solely for business use.
In a landmark ruling in 2021, the Supreme Court stated that Uber drivers were classed as 'workers', not self-employed.
However, you are still expected to complete a self-assessment tax return 'for tax purposes'! If you're an Uber driver, you might need someone to explain this complicated situation, and if so, Auditox can help you.
We will complete the return for you, or assist you in filling it out, then get it sent off in plenty of time to avoid a fine for being late.
Limited companies have to prepare an annual tax return and send it to HMRC and Companies House every year.
As with self-assessment returns, dealing with business expenses is often a complex task. For example, while it's fine to claim capital allowance on assets purchased for the business, the cars themselves don't qualify.
Our accountancy service deals with this kind of problem and our accountants for taxi drivers are fully trained to offer expert advice to guide you through this particular minefield!
If your taxi firm has earned more than £85,000 in a consecutive 12-month period, you'll need to register for VAT. This can be a real nightmare for taxi drivers, and it's easy to fall foul of the VAT rules.
For instance, if your income goes above the threshold for several months - even by a small amount - and you don't realise it, you can still be fined by HMRC, even if you tell them as soon as you are aware.
We will advise you on all matters relating to VAT, including the option of being VAT-registered while below the threshold.
Accurate record-keeping (bookkeeping) is essential, as you need to account for all income and expenditure. As we said at the start, HMRC targets taxi firms and drivers more than most other businesses, so it pays to be prepared.
It also makes things much easier when compiling annual accounts, allowing you to view your profit and loss account clearly.
Our taxi accountants will examine your financial affairs to see if we can reduce your income tax liabilities.
This means you get to pay less tax while remaining compliant with all HMRC rules and regulations.
If you employ taxi drivers, you'll need to arrange for them to be paid. Our payroll system makes this a breeze, and our accountants will handle the weekly or monthly processing.
As a taxi driver, you're on the go a lot of the time. Our easy-to-use accounting software allows you to view your finances and simply record income and expenses incurred on a cloud-based app.
This puts you in complete control of your money, while we do all the number crunching behind the scenes.
This is a must for all taxi drivers and delivery drivers - both you and your customers need to be protected from mishaps on the road.
We will source the best public liability insurance cover and rate for you to ensure that you are fully covered.
As well as offering professional advice and assistance with all of the above, we can also help you with the following:
**Paper records will soon be a thing of the past! All tax returns must be submitted online under the new MTD rules, using 'compatible software'. We can provide the software and train you how to use it.
We are proud to offer professional advice to hard-working taxi drivers, easing their burden and allowing them extra free time to use as they please.
Whether you're available for private hire or you're a public 'cabbie', we're here for you. Maybe you own one taxi, maybe a whole fleet - it doesn't matter about the size of your outfit, Auditox provides the same accounting and tax solutions to all.
If you're a taxi driver or business owner, give us a call now to discover more about why we are the best accountants for you.
Taxi drivers often face variable income due to seasonal demands and changing regulations. Keeping track of multiple expenses like fuel, maintenance, and insurance while adhering to UK tax obligations can be complex.
Yes, specialised accountants can provide auditing services to ensure that a taxi driver's financial records are accurate and compliant with UK laws. This can be invaluable for avoiding penalties and ensuring financial health.
A specialised accountant can help taxi drivers allocate funds effectively for vehicle maintenance and other expenses. They can also advise on how to record these costs properly for tax deductions in accordance with UK tax laws.
Specialised accountants can guide taxi drivers on the most cost-effective insurance options and how to handle licensing fees. This ensures that you are not only compliant with UK regulations but also optimising your expenses.
Taxi drivers often face variable income due to seasonal demands and changing regulations. Keeping track of multiple expenses like fuel, maintenance, and insurance while adhering to UK tax obligations can be complex.
Yes, specialised accountants can provide auditing services to ensure that a taxi driver's financial records are accurate and compliant with UK laws. This can be invaluable for avoiding penalties and ensuring financial health.
A specialised accountant can help taxi drivers allocate funds effectively for vehicle maintenance and other expenses. They can also advise on how to record these costs properly for tax deductions in accordance with UK tax laws.
Specialised accountants can guide taxi drivers on the most cost-effective insurance options and how to handle licensing fees. This ensures that you are not only compliant with UK regulations but also optimising your expenses.