Taxi Driver Online

I hear that if you have an accountant, they can tell you how you can save money on household items by claiming the vat back off them and classing them as use for the taxiing? Anyone have a list or anything ?

_________________
Leon, Ellesmere Port.

As you work from home, you can also get a proportion of your household running costs ofset against tax, as well as work clothing, and any cleaning products that may be used.

If you can't think of them yourself then chances are you would have difficulty persuading the taxman that they're tax deductible.

Perhaps if you use a computer to do the books then you could claim back that, but you would only get a fraction of the cost - ie that relevant to doing your books, and not the whole cost of the computer.

_________________
Taxi Driver Online
www.taxi-driver.co.uk

I suspect the average driver would have a problem persuading the taxman that they're working from home?

_________________
Taxi Driver Online
www.taxi-driver.co.uk

why not, he has to do his accounts at home does he not, and he doesn't have a base to go to, as a sales rep (I din't bother as it mean't self assesment) but I was entitled to claim business phone calls (coulda claimed line rental of Phone and BB too but co paid for those) and you can add up household expenses, heating lighting mrtgage etc, and claim a 5th if you have 5 public rooms (exc bedrooms and bathrooms) 1/4 if you have 4 etc, or summat like that, this amount can then be offset against tax. Worth looking into?

why not, he has to do his accounts at home does he not, and he doesn't have a base to go to, as a sales rep (I din't bother as it mean't self assesment) but I was entitled to claim business phone calls (coulda claimed line rental of Phone and BB too but co paid for those) and you can add up household expenses, heating lighting mrtgage etc, and claim a 5th if you have 5 public rooms (exc bedrooms and bathrooms) 1/4 if you have 4 etc, or summat like that, this amount can then be offset against tax. Worth looking into?

Be very careful about claiming household stuff, The taxman has a long memory.
If you were to go under they could have a claim against assets.

If expenditure is specifically related to doing the job then I think you're correct, but I think it would need more than just a room that's used a few hours every year to do the books then even if it was allowable expenditure it would hardly be worth claiming.

I think the taxman would be looking at some kind of dedicated room that was used as a taxi office or suchlike, and might be looking for things like planning permission.

If a driver doesn't have a base to go to and goes home then he's...err...gone home!!!

But as smiffyz alludes, for the average driver it would probably be more hassle than it's worth.

_________________
Taxi Driver Online
www.taxi-driver.co.uk

I think the essetial point is that there's a difference between 'working from home' and having your taxi at the front door, which basically means that you've gone home while not working

_________________
Taxi Driver Online
www.taxi-driver.co.uk

Claiming VAT back?

there must be some rich cab drivers out there

Captain Cab

_________________
Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

Yes, that's a good point - the original post presupposed that the driver would be VAT-registered, which isn't a route that the average driver wants to go down, because he would be accountable for VAT on all fares collected.

But, in any case, the principle as regards deducting household and other expenses for income tax purposes would still be relevant, and that's basically what I was getting at above, but I still think it's a non-starter.

_________________
Taxi Driver Online
www.taxi-driver.co.uk

An old cab driving freind of mine used to pay his wife a set amount per week to do his books etc

I suppose that one works

Captain Cab

_________________
Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

Yes, but again, how long does it take to keep a set of taxi books for a week?

Being realisitic, it would hardly be worth claiming unless there was a fleet of cars or an office of some kind.

That's assuming that the taxman doesn't thing it reasonable for your wife to charge £50 per week to do the books.

_________________
Taxi Driver Online
www.taxi-driver.co.uk

sensible to pay a non working spouse up to their tax free earnings, that way you save tax on that portion, as for dedicated office, it doesn't have to be, if you do a proportion of your work from home, preparing accounts, washing/hoovering car, all associated paparework, then you are entitled to claim some tax back from household expenses.
of course as to wether it's worth the hassle, but if your claiming for uniforms, running costs, then why not?

With the likes of petrol receipts and stuff you buy for your car, do the receipts have to display the ammount of VAT paid on them, as i have a few receipts that only display the total cost of product ?

_________________
Leon, Ellesmere Port.