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It can be a very busy and stressful lifestyle, working as a taxi driver, or by extension delivery driver. There are the constant pickups and now delivered which need to be taken, if you want to earn money.
Making sure you get paid is not the only worry you have though, as you have to be constantly aware of giving each customer/passenger you’re very best to ensure you score a great star rating.
Above all this, though, there is one even more important thing you need to be aware of – filing your taxes properly.
Although you work for a taxi rank, private hire company, Deliveroo or Uber, you are not directly employed by them.
As you may already be aware, you work for these types of companies in a self-employed contractor capacity.
You are essentially their partner and that means, while you are not limited to how much you can earn, there is the major downside that you need to handle your profit and loss account, taxes and expenses by yourself.
If you are new to the profession, you will likely have a lot of questions. The first one you need to be asking is who you should let know that you are operating as a sole trader or independent self-employed contractor and how?
The answer is simple, you need to tell the HMRC, and you do this by signing up with them for class 2 and 4 national insurance and self-assessment and waiting until you receive a Unique Tax Reference number, also called a UTR number for short.
You must keep a record of this number as it is your identifying number that tells HMRC who you are.
What is required of self-employed taxi drivers, uber drivers and Deliveroo drivers? You need to send in self-assessment tax returns every year by October 31st if sending paper copies or January 31st if you are sending online.
When it comes to filing tax returns another important question you probably have is what can you claim as expenses when working as a Deliveroo, uber, or taxi driver.
Although it is not by any means an exhaustive list, here are the most obvious and popular expenses an accountant can help you with:
In addition to the vehicle-centred expenses you can claim as a self-employed driver, you can also claim the following:
Self-assessment of business expenses is a crucial area of accounting for drivers as it means you can reduce your tax bill.
However, it can be very complicated and quite stressful to deal with, if you are anything less than an expert.
That is why if you are registering as self-employed and want to better understand the business expenses you can claim back, you need to seek out the advice, support and accounting and tax services of a company like Tax Bite.
Contact us today for more information on how we can help you with our tax planning, tax solutions, and tax affairs designed with taxi drivers and other professional drivers in mind.
The accounting industry is full of various accounting firms all claiming to be the best of the best. Why should you choose Tax Bite, then?
Well, for one thing – compared to more general accountancy service offered to businesses, the team here are skilled and experienced in providing accounting and tax services specifically devised with drivers in mind.
We have worked alongside individuals and organisations in this industry for many years and understand it in great detail.
For more information about how we can help you, contact our team today.
Even if you have not yet signed up as self-employed through HMRC, don’t worry. Tax Bite and our qualified accountants and tax return experts can guide you through the whole process from start to finish.
We can advise you on the expenses you can claim and what you can’t and establish a practical and effective bookkeeping strategy that ensures you are always on top of your records.
Crucially, when it comes to HMRC tax investigations, taxi drivers and other drivers are thought to be one of the most scrutinised when it comes to accounts.
Taxi driving and other driving professionals are not the easiest careers to have. Sure, they offer a lot of freedoms – you don’t necessarily have a boss, can pick and choose the jobs you take and there is no real upper limit to what you can earn.
The downsides are that you need to deal with your taxes, bookkeeping and everything else related to the financial and tax side of your business.
However, you don’t need to do it yourself, though. You can enlist the help of the talented and fully qualified team of accountants here at Tax Bite.
To start working with us, it all begins with a simple phone call or by using the contact information on the contact us page. From there, you will be assigned a dedicated accountant who will deal with your accounts from the moment you start receiving our services to the moment you stop.
Our team at TaxBite help various sectors in accounting, such as: