As a self-employed taxi driver, you will pay income tax and national insurance on your profits, as well as Vehicle Excise Duty (VED).

For your expenses, you can generally either claim a set amount per mile, or keep track and claim for the actual costs of fuel, repairs, servicing etc. If you are planning to buy a vehicle to use as a taxi, then you can also claim tax relief on that.

Taxation certainly can be complex – especially if you really want to dive into the nitty gritty of claiming every last bit of tax relief you are entitled to.

Investing in a good accountant can really help you keep track of things. You will not only get peace of mind, but they may even find tax savings that are at least equal to the cost of their fee.

So what can we do for you

At Motabar Accountancy, we will guide you on how much income tax you can expect to pay, how road tax affects taxi drivers, and the expenses and allowances you can use to reduce your tax bill.

Our accountancy service for taxi drivers includes:

• Bookkeeping to keep track of your monthly income and expenditure
• Registering you as self-employed with HMRC
• Preparing and submitting your self assessment returns
• Providing advice on your takings, expenses and capital allowance claims