Helpful Notes When preparing A Taxi Driver Accounts To save Money
Smaller airport taxi drivers in keeping with other smaller businesses must submit a self assessment tax return form each year canceling the main totals taxi antwerpen from the airport taxi drivers accounts. The final submission date for these accounts permit the tax authorities to calculate the tax payable is 30th September while the final timeline for submission of the self assessment tax return is 31st Economy is shown. Miss the 31st Economy is shown timeline and the charges fine is 100 pounds.
The simplest solution to preparing the airport taxi driver accounts is to collect all the airport taxi invoices and expenses together, hand them over to an accountant that will prepare your self assessment tax return and might charge between a hundred and fifty to 450 pounds for the benefit. That is difficult. Airport taxi driver accounts does not have to be that difficult. You can prepare your airport taxi driver accounts and self assessment tax return yourself but do something.
These airport taxi driver notes in preparing the airport taxi driver accounts and completing the self assessment tax return are to assist that process.
Gas mileage Allowances
Airport taxi drivers can claim as an alternative to vehicle running costs gas mileage allowances of 40p for the first 10, 000 miles and 25p per kilometer thereafter. You may not claim gas mileage allocated and vehicle running costs. Should you to claim the gas mileage allocated then keep good records of gas mileage covered, function of journey.
Airport taxi Capital Allowances
If you bought a vehicle in the financial year 2007-08 and used the automobile as a airport taxi you can claim catastrophe year writing down tax allocated of 25% of the cost of the airport taxi, restricted to 3, 000 pounds for vehicles costing over 12, 000 pounds. On vehicles purchased in previous tax years you can claim 25% writing down allocated on the balance not yet claimed. Many taxis are bought and sold each year and where a airport taxi is sold money tax allocated that can be claimed is the difference between the written down value for tax purposes and the amount of sale proceeds. First year allocated on not for vehicle assets in the present tax year 2007-08 is 50% for small businesses.
Taxis bought on Hire Purchase
Claim capital allowances on the original cost of the vehicle, interest and other charges count as business expenses and go in the self assessment tax return box 3. 61 Other Finance Charges
Airport taxi Running Costs
When completing the self assessment tax return airport taxi drivers should enter fuel costs in box 3. fouthy-six cost of sales not motoring expenses. A standard check carried out by any competent away from the coast revenue inspector enquiring into a self assessment tax return would be to check when the airport taxi driver was on vacation and examine if fuel invoices had been included for this period. Not many tax statements are enquired into as the system is situated upon trust but airport taxi drivers should ensure their accounts do not contain this fundamental tax fidget. Airport taxi running costs also include repairs, providing and parts including tyres, road tax, airport taxi insurance and AA/RAC membership. Include radio hire and airport taxi office costs in general admin expenses.
If you run your airport taxi business at home you can claim a proportion of household expenses as business expenses in the airport taxi accounts. Household expenses will tend to be disallowed unless they are either specific to the business or a specific area of your home is devoted entirely to your airport taxi business. Using part of an area in your free time would not be sufficient to include family members expenses in the airport taxi driver accounts.
You can claim expenses for partners who work for your airport taxi business and payments up to 100 pounds each week would not attract income tax or national insurance however any payments claimed in the airport taxi driver accounts must be real payments for real work done. The Revenue naturally adopt a strict sight on airport taxi expenses claimed for partner are it is an area some people might use to reduce the tax liability. Care is required to rationalize the partner as an expense.
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 may give rise to an Revenue enquiry into the self assessment tax return.
The best method of ensuring the airport taxi drivers tax bill is just possible in the future will probably be to diligently maintain good records of all airport taxi invoices and expenses and gas mileage covered that provides the opportunity for airport taxi drivers to compare the airport taxi running costs against gas mileage allowances and choose the most tax efficient option. Your choice to claim gas mileage allocated or airport taxi running costs can and often does change during the financial year. In general when a more expensive taxi cab is purchased then the capital allocated of 3, 000 pounds will often outweigh the potential gas mileage allocated although if the vehicle is low value the gas mileage allocated might be the best option and a method of saving valuable tax pounds which you are entitled to. The best airport taxi accounting software will automate the comparison of airport taxi gas mileage allowances with airport taxi running costs doing the airport taxi accountants work for you.