taxi driver bookkeeping/account - The Book-keepers Forum (UK)

Mickey · Veteran Member

taxi driver bookkeeping/account

HendyPhilhendy · Guru

There's nothing particularly complex about a taxi driver compared with any other business. Only issue really is cash income and how much they are actually earning.

If they are associated to a taxi firm they should receive some sort of 'payslip' to confirm their daily takings. i.e. it will be read from the machine.

Allowable expenses are

Fuel
Repairs
Insurance
Hackney licence
Road Tax

Do you have any more specific queries?

RobH · Expert

And be aware that in the event of an investigation, hmrc have a formula based on mileage on the odometer to estimate true earnings...might be worth mentioning to client if you suspect the takings are low! Taxi drivers along with other cash businesses are on the hot list. Having said taht I have two taxi drivers and have never had a problem.

Rob

Mickey · Veteran Member

As the individual is using the car for private and business use, would it be better to use the mileage claim and leaving it at that?

or

Would it be better finding out the value of the car the to claim capital allowance (of business use) as well as claiming other expense such as fuel, repair, road tax etc?

josnan33 · Newbie

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gbm · Guru

I think it would be better to claim on actual expenditure as taxis probably incur more maintenance (servicing, tyres) than other cars.

bravostrauss · Member

You know, in the investigation of the incident, HMRC has a formula to calculate the estimated mileage on the odometer may be real benefits to customers. It is worth mentioning, if you suspect that the low acquisition! Taxi drivers and other cash businesses are in the hot list. Here I have two taxi drivers and never had problems.

Merlion ABS · Senior Member

Lol Josnan33....cant wait to hear about this good place.

Bravostrauss....Get back in your cave.....2nd post I have seen that has made no sense!!!

Peasie · Expert

Bravostsrauss doesn't actually exist.

Don Tax · Expert

Mickey wrote:
I am wondering if anyone has any experience of undertaking bookkeeping/accounts for taxi drivers?

I have had an enquiry from a part time taxi driver and i would be grateful if anyone can provide me with a spreadsheet template as well as any advice.

Regards
Mickey

http://webarchive.nationalarchives.gov.uk/20100512173947/http://www.hmrc.gov.uk/bens/ben25.htm

Well worth a read if you've got a new taxi client or one under investigation.

Mickey · Veteran Member

Many thanks Don Tax!

xantia743 · Senior Member

Have a look at diy accounting for taxis. It's fairly basic but ideal for a one man band. It will also advise on which is the most effective way, mileage or actual expenditure, though like an earlier poster said, due to the high maintenance costs, expenditure probably best. It records profit and loss and tax return at end of year.

I used this for my first client, and although it was ideal the first year, he got bigger and it became cumbersome. I've now switched to VT.

John

DeanoFTM · Veteran Member

Don Tax wrote:
www.hmrc.gov.uk/bens/ben25.htm
Well worth a read if you've got a new taxi client or one under investigation.

Thanks Don, I've been looking for these for a while but could not find them.

Don Tax · Expert

Great stuff Deano - I only found Ghannis thread accidently, so glad it was of some use.

I'm not throwing out my well-thumbed copies yet though, even if the numbers are out of date.

Regards,
Tim

Rhodamack · Newbie

I've been using these books for a few years, I used to send the taxi drivers off to buy the book themselves online but now give them to my clients as a small incentive to actually keep up to date records(!) and it makes my life a lot easier too :)

http://www.taxilogic.co.uk/

Rhoda