Luchthavenvervoer Zaventem

 Self employed taxi drivers in accordance with other self employed businesses are expected to submit a self assessment tax return form every year reporting the main totals from the taxi drivers accounts. The final submission date for these accounts to enable the tax authorities Luchthavenvervoer Zaventem to calculate the tax payable is 30th September while the ultimate deadline for submission of the self assessment tax return is 31st January. Miss out the 31st January deadline and the penalty fine is 100 pounds.

The simplest means to fix preparing the taxi driver accounts is to get all the taxi receipts and expenses together, hand them over to an accountant who'll ready your self assessment tax return and might charge between 150 to 450 pounds for the privilege. That's taxing. Taxi driver accounts does not have to be that taxing. You can ready your taxi driver accounts and self assessment tax return yourself but do something.

These taxi driver notes in preparing the taxi driver accounts and completing the self assessment tax return are to assist that process.

Mileage Allowances

Taxi drivers can claim as an alternative to vehicle running costs mileage allowances of 40p for the very first 10,000 miles and 25p per mile thereafter. May very well not claim mileage allowance and vehicle running costs. Should you choose to claim the mileage allowance then keep good records of mileage covered, intent behind journey.

Taxi Capital Allowances

If you purchased a vehicle in the financial year 2007-08 and used the car as a taxi you are able to claim an initial year writing down tax allowance of 25% of the cost of the taxi, limited to 3,000 pounds for vehicles costing over 12,000 pounds. On vehicles purchased in previous tax years you are able to claim 25% writing down allowance on the balance not even claimed. Many taxis are bought and sold every year and in which a taxi comes the capital tax allowance which can be claimed may be the difference between the written down value for tax purposes and the total amount of sale proceeds. First year allowance on non vehicle assets in the current tax year 2007-08 is 50% for small businesses.

Taxis bought on Hire Purchase

Claim capital allowances on the original cost of the car, interest and other charges count as business expenses and go in the self assessment tax return box 3.61 Other Finance Charges

Taxi Running Costs

When completing the self assessment tax return taxi drivers should enter fuel costs in box 3.46 cost of sales not motoring expenses. A standard check carried out by any competent inland revenue inspector enquiring into a self assessment tax return is always to check when the taxi driver was on vacation and examine if fuel receipts had been included because of this period. Not many tax returns are enquired into as the machine is based upon trust but taxi drivers should ensure their accounts don't contain this fundamental tax fiddle. Taxi running costs also include repairs, servicing and parts including tyres, road tax, taxi insurance and AA/RAC membership. Include radio hire and taxi office costs generally speaking administrative expenses.

Household expenses

In the event that you run your taxi business from home you are able to claim a proportion of household expenses as business expenses in the taxi accounts. Household expenses are apt to be disallowed unless they're either specific to the business or even a specific section of your house is devoted entirely to your taxi business. Using part of a space in your free time would not be sufficient to add the household expenses in the taxi driver accounts.

Spouse Costs

You can claim expenses for partners who work for your taxi business and payments as much as 100 pounds weekly would not attract income tax or national insurance however any payments claimed in the taxi driver accounts should be real payments for sure work done. The Revenue naturally adopt a strict view on taxi expenses claimed for partner work as it's a location some individuals would use to lessen the tax liability. Care is needed to justify the partner as an expense.

Other Expenses

Enter all business expenses in a named expense box on the self assessment tax return. Avoid entries in box 3.63 Other Expenses if possible as any significant amounts in this box can provide rise to an Revenue enquiry in to the self assessment tax return.

The most effective method of ensuring the taxi drivers tax bill is as little as possible as time goes by is undoubtedly to meticulously maintain good records of most taxi receipts and expenses and mileage covered which provides the chance for taxi drivers to compare the taxi running costs against mileage allowances and choose probably the most tax efficient option. The decision to claim mileage allowance or taxi running costs can and often does change during the financial year. Generally speaking when a more expensive taxi cab is purchased then your capital allowance of 3,000 pounds will often outweigh the potential mileage allowance although if the car is low value the mileage allowance might be the very best option and a technique of saving valuable tax pounds which you are entitled to. The most effective taxi accounting software will automate the comparison of taxi mileage allowances with taxi running costs doing the taxi accountants work for you.

Terry Cartwright, a qualified accountant in the UK, designs Taxi Software on excel spreadsheets specifically for the Taxi Driver wishing to truly save money and prepare the Self employed Taxi Driver Accounts and produce the self assessment tax return in the process Luchthavenvervoer Zaventem.