Been asked to do a profit and loss account for a taxi driver for last year - he has no receipts, no paperwork, nothing official but has given me a notebook detailed with fuel, mileage, hires and fees for every 4 week basis for the year. Am I able to put together a simple hires minus costs spreadsheet for this or is there a lot more to it?
At the end of the day we have to rely on the integrity of the client, and can only go by what the clients tells us, and gives us. Unless I had a strong enough suspicion that the client is making false claims, I don't think it is in my remit to police their morals and assume them innocent until I thought otherwise. If I had a suspicion, I would by default, have to report under MLR.
He is asking you to compile the account based on his bookkeeping. If you have enough details, you could produce a profit and loss account.
Get the client to sign an approval statement, stating that they are compiled from incomplete accounts and that the client acknowledges his responsibility for the accuracy of the information supplied to you.
The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
Hi, as the others say write up a P&L for him. If the books don't include figures that you would expect to see then wrap your client up in questions.
Type of expenses to be found on a taxi P&L include the following: Settle Fees Motor Expenses (Road Tax, Ins, Maint, Fuel) less any personal use Badge Fees Plate Fees CRB Check fees
Been asked to do a profit and loss account for a taxi driver for last year - he has no receipts, no paperwork, nothing official but has given me a notebook detailed with fuel, mileage, hires and fees for every 4 week basis for the year. Am I able to put together a simple hires minus costs spreadsheet for this or is there a lot more to it?
That's pretty much standard for a taxi driver. You don't often get much more. Just make sure he's remembered things like road tax, insurance, plate fees, small amount of stationery and phone and go with it.
I'm a big fan of taxi driver tax returns personally!
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
Have a strong enough suspicion customer is making a false claim, I do not think this is my remit them to the police ethics, and commitment to their innocent, until I was not. If I have doubts, I will default, must be based on the report of Land and Natural Resources.
bravostrauss.....can I have some of what you are on please!!! 8)
Mcspurren:
ok, before you commence work make sure that you have a letter of engagement setting our what your are doing for them and also what you expect from them...make sure it includes "all relevant, correct and full information" to carry out your job. well something to that effect to cover your back.
Even if you have a small doubt about the validity of the details given too you, who do you report it too and can you prove it? HMRC and probably not, so you have nothing to worry about, you are just reporting what the client tells you under the terms of the letter of engagement.
Make sure you make notes about every thing discussed and said, just in case!
Its up to the HMRC to investigate if they feel something is amiss.
I think that BravoStrauss hit every old thread with taxi's in the title. This one was just 4 months old but some were as old as 15 months.
From the posts I'm suspecting the use of Google translate as I couldn't make head nor tail of any of them.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
