Taxi Accountants –Professional Taxi Accountants in London
A strong financial foundation is key to running any business successfully, and precise management of it can go a long way. Another hindrance in the taxi business is the legal requirements of financial documents. Therefore, regardless of how small or big, your company is, if you have one taxi or a fleet of taxis you would require Taxi accountants. You could be running as Hackney cab or private hires, you would require an accountant to maintain your financial statement for tax purposes.
We at JK Accountants be the supporting associate to handle all the financial affairs. Whether you are an established taxi company in the UK or an individual running a taxi business in your own vehicle, we understand the hefty legal requirements are equal on both. Hence, at JK Accountants, we treat every client with equal professionalism and efficiency. And, moreover, according to the client’s requirements, the services of taxi accounting can be adjusted.
It is a fact; that taxi driving is one of the businesses in the UK that are most at risk of being subjected to legal affairs and being investigated by the HMRC. Certainly, our taxi accountants- are experts in effectively and strategically planning the annual taxation- thus, ensuring you have a stress-free job experience.
What type of expenses is a taxi driver eligible to claim?
To your surprise, there are several costs that a taxi driver can claim in order to formulate an effective and sensible taxing plan.
At JK Accountants, we advise taxi drivers on how their expenditure affects their overall profit; and guide them to rightfully channel their spending- to deduct it from the final annual taxation. Hence, securing them to pay way lower taxes than initially required by the HMRC.
To learn more about what can be claimed as an expense, continue reading below.
For example, if you use your vehicle for private benefits, such as for family purposes, it can be considered in the accounts of expenses. However, if you use it for personal or family outings, you cannot claim the fuel or mileage costs.
Being a taxi driver in the UK, in order to prove your claims, it is mandatory to keep close track of your expenses and maintain records of each for evidence purposes.
There are several expenses that can be claimed. These include:
- Fuel Cost- such as petrol, diesel or even electric vehicles.
- MOT (Ministry of Transport) tests, services, repairs, and maintenance costs of your car.
- Paying road tax fees.
- Complete vehicle cleaning and washing
- Registration, license and legal expenses concerning your vehicle
- Business membership fees
- Vehicle insurance, AA, and other related membership costs
- The expenditure for smartphones and radios used in the business
- The interest born on any loans taken for your vehicle
- If relevant, the cost of maintaining and running a home office
- The expense of advertising the business
- Parking fees
- Toll charges
In short, any expenses incurred while running the business can be written off as an expense to claim. Even as small as investing in an emergency first aid kit to keep in the vehicle.
What is the tax filing procedure for cab drivers?
In the UK, Uber and taxi drivers are considered self-employed. Hence, they need to register under this category through the HMRC.
One can do it online via the government portal. The standard details required are as follows:
- Date of Birth
- National Insurance Number
- Self-employment details
It is approximately a 15min procedure to register. Once registered, the HMRC will process your application and provide you with a unique taxpayer reference (UTR). It will be required moving forward in the tax submission.
The tax year starts on the 6th of April and ends on the 5th of April next year. By the 31st of January, following the end of the tax year, one must submit their self-assessment and pay their taxes.
Being a full-time taxi driver and managing the annual taxation- all alone; can be a daunting task, especially; with the constantly changing rules and regulations in the UK.
Perhaps, working with JK Accountants and its expert team can ease your process and completely eliminate the stress of submitting accurate information at the right time. Additionally, we assist in developing efficient and strategic tax statements, ensuring you pay much less than you should!
Do cab drivers qualify as independent contractors?
Yes, only those who have complete control over their way of work and its operations can be considered independent contractors. Nonetheless, the laws on contractors have recently tightened up; it applies to businesses and individuals offering services to a wide range of customers for a shorter period of time.
Furthermore, taxi drivers can be classified into the followings- either employees, workers, or self-employed. However, if a driver exclusively works for a cab company, they are not identified as an independent contractor.
Are cab drivers eligible to claim capital allowance?
Yes, you can claim a capital allowance that can be set off against the annual tax return; if you purchase assets for your business.
However, cars, on the other hand, are not classified under the (AIA) Annual Investment Allowance, meaning- the entire value of the vehicle cannot be written off in the same tax year.
At JK Accountant, we assist you in appropriately directing your assets and rightfully claiming your capital allowance. For instance, if you invest in a car, we use the writing down allowance policy.; that allows you to deduct a percentage from the entire purchase value each year. Traditionally, in the UK, the writing down allowance percentage for taxi cabs is 18.
Can UK taxi drivers claim their mileage?
Yes, there are two techniques by which an uber or taxi driver can claim their mileage expenses.
- The simpler method
There is a fixed standard rate set per mile. Each mile you travel is calculated on this value. Indeed, this is the most simplified way of claiming mileage, and easy to calculate and monitor as well.
Taking a real example from the UK, it is 45 pence per mile in the first 10,000 miles traveled and 25 pence per mile after that.
However, the drawback is that this method cannot be changed once selected. Also, one cannot claim the capital allowance if one takes this approach in claiming mileage.
- The complex method
This method; requires you to list each and every mileage and other expenses individually.
The setback is that it is highly time-consuming and requires close monitoring of every expense to maintain an accurate account- to support the calculation of the annual tax return.
Perhaps, in today’s time- having advanced software or getting an expert team, like JK Accountants, on board has made the work easier!
Latest financial Accounts for Taxi Drivers-
A recent decision was ruled out by the Supreme Court that has created slight confusion in the management of accounts for taxi drivers.
The law announced that Uber drivers are, in fact, not considered self-employed but; regarded as workers who are entitled to the official wages and leaves of the company.
Here, the decision is explained in more detail to dispel any confusion. The law affected employment status; meaning, the term “worker” is a regular man between formal employment and self-employment.
Hence, regardless, uber taxi drivers are still categorised as self-employed, thus, making it a must to submit a self-assessment to HMRC each year.
If you are an Uber driver or require an accountant for your fellow drivers, JK Accountants is right here. Reach out to us, and we will provide you with suitable and professional accounting guidance.
Why should you choose JK Accountants?
As mentioned above, maintaining finance and accurate bookkeeping daily can be a daunting task. Besides, it is highly time-consuming.
This can be a challenging task, especially with the nature of the driver’s job. Hence, it could be demanding to provide accurate information and walk intact with the ever-changing taxing laws- to submit the annual tax returns on time.
Likewise, if you reach a little late than the due- you have a fine to pay additionally.
Worry not though! We are here to empty all the tension and pressure you carry. Partnering with professional accountants has become much simpler and more affordable now.
We, at JK Accountants, provide curated solutions to sole traders, self-employed, and even small businesses at a friendly budget.
We provide services for:
- Taxi Cab Accountants
- Private Cab Accountants
- Courier Sevice Accountants
- Delivery Service Accountants
- Uber Driver Accountants
The benefitting edge of partnering with JK Accountant is that we allow you to drive your taxi stress-free; while- we closely look after your annual tax returns. Besides that, we also offer practical solutions that help you save a lot from your demanded annual taxation.
Below mentioned are a few of the taxi accounting services we offer our taxi and cab drivers in London:
- An advanced accounting system that keeps you updated with all the records
- Taxation planning and advice
- Registration of Self- Employment
- Annual submission of self-assessment tax
- HMRC tax refunds
- Help with claiming the rightful benefits
- Support with Mortgage
- Guide with relevant insurances
- Support with all the legal investigation
- Assistance with VAT
- Assistance with Bank loans
- Accessibility of home loans and business loans
If you require accounting support for your taxi business that is based in London, get in touch with us today! Our taxi accounting professionals at JK Accountants will guide you further with the necessary information.