Taxi drivers in the UK should complete a tax self-assessment, if they have worked as a taxi driver independent at any time during the tax year. Self-assessment tax returns must be filed before September 30 of each year, even if the deadline is January 31st following. Failing to file accounts bus January 31 attracts a £ 100 penalty for late filing with interest charged on taxes not paid by that date.
The simplest solution to prepare the accounts of a taxi driver is to collect all revenues and expenditures for bus together, give them to an accountant who prepares your tax return self-assessment and may be responsible for 150 to 450 pounds for the privilege. It’s tough. Taxi driver accounts need not be that imposing. You can prepare your taxi driver accounts and self-evaluation statement yourself but do something.
The taxi driver notes in preparing the taxi driver accounts and complete tax return on self-assessment are to assist this process.
Mileage Allowances
Taxi drivers can claim as an alternative to operating costs of the vehicle mileage allowance of 40p for the first 10,000 miles and 25p per mile thereafter. You May not claim mileage allowance and the cost of operating the vehicle. If you decide to ask the mileage allowance then keep good records of mileage covered, purpose of trip.
Taxi Capital Allowances
If you purchased a vehicle during the year 2007-08 and the vehicle used as taxi, you can claim a first year write 25% reduction in the cost of the taxi, restricted to 3,000 pounds for vehicles over of 12,000 pounds. On vehicles purchased in previous tax years, you can claim 25% of the allowance to write on the balance not yet claimed. Many taxis are bought and sold each year and where a bus is sold the capital tax that compensation may be claimed is the difference between the reductions in value for tax purposes and the amount of proceeds of sale . First year of the non active in the current vehicle tax year 2007-08 is 50% for small businesses.