Taxi Driver Expenses
As a private taxi driver, it is important to know what taxi driver expenses you can and cannot declare when filing in your Self Assessment form. After all, you want to make sure you are making the most of all tax breaks that are available to you, yet the last thing you want is to have a fine for HMRC for declaring your expenses incorrectly. So, what expenses can you declare as a private taxi driver?
Any costs that are associated with running your vehicle
As a private taxi driver, you will be able to claim for any type of expense that is linked to you running your vehicle. This includes the cost of diesel or petrol, as well as the amount of money you spend on servicing your taxi and repairing any damage. PHV taxi insurance is also a cost of running your vehicle for your business (also know as private hire insurance). You can also claim for your MOT test and the cost of your yearly road tax. You can even claim for the cost of cleaning or washing your taxi. After all, a presentable vehicle is a necessity to your line of work.
Fees linked with your vehicle
If you purchased your tax using a personal loan or a bank loan, you can state the interest on the loan as an expense. You can also claim for any registration fees you have been subject to, for example, license fees. Vehicle insurance and AA/RAC membership are both eligible expenses as well.
Office and admin expenses
If you run your taxi business out of an office, you can claim this as an expense. If you use your home as an office, you will be able to claim a portion of this as rent. You can use one of the calculators available online to determine how much you should declare. Other admin and related expenses that can be incorporated include advertising, accountancy fees, and phone usage for business purposes.
Additional expenses
You can claim for parking fees and toll fees, but you certainly cannot claim for a parking ticket. You can also state any equipment you hire as an expense, for example, radio hire.
Hopefully, you now have a better understanding regarding the expenses you are allowed to declare as a private taxi driver. It is important to include all of the expenses that have been discussed in this post so that you can avoid paying too much tax.
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