The simplest solution to preparing the taxi driver accounts is to collect all the taxi receipts and expenses together, hand them over to an accountant who will prepare your self assessment tax return and might charge between 150 to 450 pounds for the privilege. That is taxing. Taxi driver accounts does not have 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 as an alternative 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. The DIY Accounting taxi accounting software automates this mileage allowance calculation.

Taxi Capital Allowances

If you bought a vehicle in the financial year 2007-08 and used the vehicle as a taxi you can claim a first year writing down tax allowance of 25% of the cost of the taxi, restricted 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. If you have bought and sold a vehicle used as a taxi during the financial year the tax allowance is restricted to any loss made on resale and any profit made over the written down value is taxable as a balancing charge. 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. 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 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 possible as any significant amounts in this box may give rise to an Revenue enquiry into the self assessment tax return.

The best method of ensuring the taxi drivers tax bill is as low as possible in the future is undoubtedly to meticulously maintain good records of all taxi receipts and expenses and mileage covered which offers the opportunity for taxi drivers to compare the taxi running costs against mileage allowances and choose the most tax efficient option. Generally if the taxi cab capital allowances are high vehicle running costs will be the best option and if taxi cab capital allowances are low then mileage allowances may well legally increase the costs you can claim and save you money.

The DIY Accounting taxi accounting software automates the comparison of taxi mileage allowances with taxi running costs doing the taxi accountants work for you.

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The taxi insurance company is very significant in the United Kingdom.  The taxi insurance uk is one of the largest taxi insurance companies, private or public hire.  The Taxi Insurance experts, known as brokers will offer you efficient service and excellent coverage.  More so, the competitive insurance policies are designed to ensure that you not only have the best taxi coverage, but also obtain a reasonable premium.

Whether you own a taxi company or drive for one, taxi specialist will find the right policy for you.  Major Taxi Insurance UK such as Westminster Taxi Insurance Company is proud of their experience in the Taxi and Private Hire Trade.  The Taxi Insurance Company owner holds a Taxi Drivers License and he is a member of the Chartered Institute of Transport.  Another well known name in the Taxi Insurance UK arena is the Swinton Taxi Insurance Company.  Swinton Tax Insurance Company Taxi Division specialist offers competitive rates for the coverage that you need.  The insurance company also offers the option for payments by installment. 

Both of these Taxi Insurance Companies are considered by most consumers because they help your business save money.  Any Taxi Insurance UK company that is available in the mainland United Kingdom actually offers high quality service and it can be obtained online.  Westminster Taxi Insurance Company Motor Association provides no claims discounts as well as a rewarding Loyalty discounts.  The Taxi Insurance policyholder for either insurance company should be at least twenty- one years of age to qualify.  Most Taxi Insurance companies in the United Kingdom operate under certain values that must be honored by the insurer.  Standard coverage for Taxi Insurance UK is competitive, yet rewarding.  If you were to search online, these standards would help you decide upon the most adequate taxi insurance policy for your business.

If your taxi was involved in an accident, a quality insurance company would respond quickly to the emergency.  There will also be a quick notification of assessors in the unfortunate event of that accident.  The Taxi Insurance Company should arrange for speedy authorization of vehicle repairs to get you back on the road quicker.  For instance, the Westminster cheap Taxi Insurance package offers four to six passenger policies for the same premiums along with no cost legal protection.  And, the insurance coverage provides Public Liability Insurance up to 10million while you are away from your vehicle.  The swinton taxi insurance Company insures vehicles against accidents, theft, fire and even scratching against other vehicles to include any stationary objects that may have been in the way.

The Taxi Insurance UK policy will be tailored by taxi insurance brokers to provide adequate coverage and protection.  Generally, the coverage is for the vehicle, the taxi driver and private and public hire.  It is important for the insurance provider to implement the highest quality customer service while also offering working solutions for your insurance needs of your passenger transportation business.  The overall objective is to give superior premiums and excellent service that will be provided by the Taxi Insurance Company brokers.

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