Tax Breaks for Private hire taxi drivers
By knowing the private hire taxi driver tax breaks, you can reduce your tax burden and increase your revenue stream. This knowledge will help you navigate the complex tax laws, so you can avoid fines from the HMRC for listing items on your self assessment form that should not be there.
What operating costs can be listed?
When it comes to operating your business as a private hire taxi driver, the costs to keep things going are extensive. Private hire insurance or PHV insurance expenses must be directly related to the business. Reducing your tax burden and make a good choice when choosing your private hire vehicle will help reduce your cost and increase your profit margins. The following are the most common expenses that can be listed on your self assessment form.
What fees can be included?
There are many fees paid to the government for operating your private hire vehicles. All of those fees can be listed as business expenses on your self assessment form, along with fees to private businesses.
For those that took out a loan for the business like a vehicle loan, the interest being paid on that loan is also tax deductible.
What business operating costs can be deducted?
Operating a business has many different facets to it. To help keep the finances in order, an accountant is hired. There are also costs to advertise, and many phone calls used to conduct business transactions. The rent for office space can be full deducted if it is not part of your home residence. For those that operate out of their home, then only a portion of the costs of owning the home or rent can be deducted. All of these are legitimate tax deductions.
To help keep you organised it is best to keep very good records of all your expenses. This record and all the receipts should be kept for a minimum of 6 years, just in case the government requests them. It is not advised to attempt to stretch the truth about your business expenses. The government knows the loopholes, many tax filers try to use, and place fines on those that attempt to use them. Being honest is the best way to file. If you feel an expense is borderline to the rules, do not list it. Remember, the government has 6 years to audit you.