Being a taxi driver has many perks – the hours are often flexible, the work is sociable and you have a level of independence which is rarely found in other careers. However when it comes to accounting and taxes, it becomes complicated. So here are our top accounting tips for taxi drivers…
Maintain Good Accounts Records
Maintain all your records carefully. When it comes to your tax return, you will be thankful you did. To be extra safe, take a mileage reading at the beginning and at the end of the tax period, to double check that your records add up. HMRC may need to check the amount that you declare on your self-assessment tax return, so an extensive filing system is advised.
Record your expenses – you can claim tax relief on some of them
Remember that you are entitled to claim allowable expenses which you incur while working. This includes the cost of petrol, the cost of servicing or repairing your car or van, the cost of an MOT, license fees and even the cost of keeping the cab clean. Again, it’s important to keep a note of these costs as they arise and to keep all receipts of expenses which you later claim. However, remember that you cannot claim mileage allowance as mileage costs are already factored into your tax allowance.
Work with an accountant
Hire a reliable accountant. If you’re a self employed taxi driver or you run taxi company, an accountant can help you keep control of your finances. From keeping records to assisting with your tax return and expenses, an accountant from MCC can help. Additionally, if you have any concerns about your finances as a cabbie, or what you may or may not be entitled to, a call to MCC can help you put your mind at ease.
We know that life is busy enough as a taxi driver without the added hassle of sorting your taxes and expenses. If you’re a taxi driver and you feel that you could benefit from the help available from MCC Accountants, give us a call today on 0161 707 1500 or contact us via our website.
