Self Assessment Tax Returns: Self Employed Industries

Self-Assessment for Taxi Drivers

All self-employed taxi drivers will need to complete an annual self-assessment. It is in the hands of the individual to decide whether they submit a paper based tax return, or opt into completing it online, but there are set deadlines for either choice. If you choose to complete a paper return, this must be filed by 31st October, whereas the deadline for online submission falls on 31^st January.  Failure to complete a self-assessment on time will result in a fine from HMRC; a day late can result in a £100 penalty fine.

It is important for a self-employed taxi driver to keep all documentation regarding their earnings, including records of all expenditure, fares, and tips, as HMRC may need to check this information in detail. A lack of such documentation may result in the process taking longer than necessary, along with the possibility of taxi drivers paying more tax than they ought to be. As self-employed workers are able to claim back on allowable expenses, it is worthwhile to file all relevant information.

These allowable expenses for taxi drivers include:

• Petrol or diesel costs
• The cost of servicing and running the taxi
• The costs of your annual road tax and your MOT test
• The cost of washing or cleaning your own taxi
• Interest on any bank or personal loans taken out to purchase your taxi
• Your license
• The cost of running your office including the payroll cost of any staff employed
• Vehicle insurance
• AA/RAC membership
• Radio hire
• Accountancy fees
• Advertising
• Phone usage for business use

It is important to note that if you are self-employed and using own vehicle for work purposes, you can claim back on your mileage, however for taxi drivers, this is not possible as fuel costs are already factored into allowable expenses.

So what can U-Tax do?

We can complete your self-assessment tax return for you. Our special offer of just £75+vat is guaranteed to beat other prices on the market. Our service is time-effective and stress free, working with HMRC on your behalf in order to leave you to concentrate on your other business matters.