Luchthavenvervoer Gent

[Jane Maria]

Self employed taxi drivers in accordance with other self employed businesses are needed to submit a self assessment tax return form every year reporting the key totals from the taxi drivers accounts. The final submission date for these accounts allow the tax authorities to calculate the tax payable is 30th September while the ultimate deadline for submission of the self assessment tax return is 31st January. Skip the 31st January deadline and the penalty fine is 100 pounds Luchthavenvervoer Gent.

The simplest solution to preparing the taxi driver accounts is to gather all of the taxi receipts and expenses together, hand them to an accountant who will prepare your self assessment tax return and might charge between 150 to 450 pounds for the privilege. That's taxing. Taxi driver accounts does not need to be that taxing. You can prepare your taxi driver accounts and self assessment tax return yourself but do something.

These taxi driver notes in preparing the taxi driver accounts and completing the self assessment tax return are to assist that process.

Mileage Allowances

Taxi drivers can claim instead to vehicle running costs mileage allowances of 40p for the first 10,000 miles and 25p per mile thereafter. You may not claim mileage allowance and vehicle running costs. Should you choose to claim the mileage allowance then keep good records of mileage covered, purpose of journey.

Taxi Capital Allowances

If you bought a vehicle in the financial year 2007-08 and used the vehicle as a taxi you can claim an initial year writing down tax allowance of 25% of the price of the taxi, limited to 3,000 pounds for vehicles costing over 12,000 pounds. On vehicles purchased in previous tax years you can claim 25% writing down allowance on the balance not yet claimed. Many taxis are bought and sold every year and where a taxi comes the capital tax allowance which can be claimed may be the difference between the written down value for tax purposes and the amount of sale proceeds. First year allowance on non vehicle assets in the current tax year 2007-08 is 50% for small businesses.

Taxis bought on Hire Purchase

Claim capital allowances on the original cost of the vehicle, interest and other charges count as business expenses and go in the self assessment tax return box 3.61 Other Finance Charges

Taxi Running Costs

When completing the self assessment tax return taxi drivers should enter fuel costs in box 3.46 cost of sales not motoring expenses. A regular check carried out by any competent inland revenue inspector enquiring into a self assessment tax return would be to check when the taxi driver was on vacation and examine if fuel receipts have been included with this period. Very few tax returns are enquired into as the device is based upon trust but taxi drivers should ensure their accounts don't contain this fundamental tax fiddle. 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 generally speaking administrative expenses.

Household expenses

If you run your taxi business at 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're either specific to the business or perhaps a specific section of your property is devoted entirely to your taxi business. Using section of an area in your free time wouldn't be sufficient to incorporate family members expenses in the taxi driver accounts.

Spouse Costs

You can claim expenses for partners who benefit your taxi business and payments as much as 100 pounds per week wouldn't attract income tax or national insurance however any payments claimed in the taxi driver accounts must certanly be real payments for sure work done. The Revenue naturally adopt a strict view on taxi expenses claimed for partner act as it's a location some individuals might use to cut back the tax liability. Care is required to justify the partner as an expense.

Other Expenses

Enter all business expenses in a named expense box on the self assessment tax return. Avoid entries in box 3.63 Other Expenses if at all possible as any significant amounts in this box can provide rise to an Revenue enquiry into the self assessment tax return.

The best way of ensuring the taxi drivers tax bill is as low as possible later on is without question to meticulously maintain good records of taxi receipts and expenses and mileage covered which offers the chance for taxi drivers to compare the taxi running costs against mileage allowances and choose the absolute most tax efficient option. Your choice to claim mileage allowance or taxi running costs can and often does change through the financial year. Generally each time a more expensive taxi cab is purchased then the capital allowance of 3,000 pounds will often outweigh the potential mileage allowance although if the vehicle is low value the mileage allowance could be the best option and a technique of saving valuable tax pounds that you are entitled to. The best taxi accounting software will automate the comparison of taxi mileage allowances with taxi running costs doing the taxi accountants benefit you.

Terry Cartwright, a qualified accountant in the UK, designs Taxi Software on excel spreadsheets designed for the Taxi Driver wishing to save lots of money and prepare the Self employed Taxi Driver Accounts and produce the self assessment tax return in the process. Luchthavenvervoer Gent