Tax Return for Taxi Drivers

If you are a self employed taxi driver or own a private hire company you may need to do a tax return so that you can declare your earnings to the Inland Revenue and pay any appropriate tax. This article will help to highlight some key things to remember for your tax return.

Claiming Expenses

Hopefully, before you start tax return you will have kept your records in good working order. You should keep a record of all your income and expenses.

Some examples of expenses that taxi drivers you can claim against any profit include:

  • Interest for loans used to purchase a cab or other vehicle.
  • Motoring expenditure
  • Petrol/Diesel
  • Servicing/Repairs
  • Tax/MOT
  • Washing your vehicle
  • License and otherĀ  registration fees
  • Office Costs (if you have one)
  • Laundry for Uniform (if you wear a specific uniform)

If you use your cab for your own personal use then you need to factor this in when any expenses are claimed. For example if you calculate that you use your cab for 20% of the time for personal or family use, then you would need to reduce any relevant expenses, such as cleaning by 20%.

Often people ask if Taxi drivers can claim a mileage allowance, similar to when you use your car for business use. Unfortunately this is not possible because you will be factoring costs like petrol and repairs of the vehicle into your expenses already. You can however claim capital allowances on the cost of capital each year.

If you are a taxi driver and have any other questions about doing a tax return, you can ask in the comments below.

Need to do a Tax Return?

14 comments

  1. Gyorgy says:

    Can i claim back the interest for loans used to purchase a vehicle even if I bought using a personal loan?

  2. marc says:

    i rent a taxi and wondered how much percentage of my fuel i can claim back

  3. bob says:

    can i claim my lease payment and also my fuel cost at 100% for my schdule c taxes

  4. nadeem says:

    cost of purchasing the car, how would you claim that back,

  5. andrew says:

    I purchaced a car for my work as a taxi driver in october. I pay monthly over 4 years where then the car is mine. How and where do i reclaim any monthly payments I make

  6. Gregory says:

    I am a taxi driver. I don’t have an office but I still I have to do the office stuff/paper work. Can I claim a part of my flat rent as my expense?

  7. Robert says:

    I have a record of my earnings and hire of taxi charges but i have lost all my diesel receipts for last year, is there a formula i can use to work out what my diesel cost were?

  8. max says:

    what about expences such like use home as a office and night working lunches all food ,do i have to have receipt for it ?? ,

  9. peter says:

    my friend purchased a car for me to use as a taxi and im paying him back weekly. do i get tax back on these weekly payments ?

  10. John says:

    How do allowance apply to a rented cab?

  11. James says:

    Can I claim Capital Allowances and the whole cost of HP?

  12. Steve says:

    I Bought a satnav is this Capitol Allowance, and/or can I put it down as Allowable Expence?
    Thanks

  13. Anonymous says:

    Does the same figure of 20% apply for fuel expenese the taxi driver incurs.

    Can you please explain the capital allowance and depreciation if applicable a little more.

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