Nemisis wrote:
Thanks for that BC, I remember quite a few years ago, when diesel was cheap & expecting to earn £10 for every £1 fuel. You say its £6 for your area now...is there a web reference you could tell us, that others might find what HMRC expect of their area?
That's what my accountant tells me that the HMRC expect.
10 to 1 hey!!!
Those were the days.
If you Google the right words, somewhere on the HMRC site there is advice to their own tax inspectors that the average taxi journey in the UK is 3.7 miles.
So from that info a tax inspector [TI] on verbal investigation might go something like this;
TI: "How many jobs do you do on average a day?"
Taxi driver [TD]: "Dunno really, s'pose about 15 sometimes 18"
TI: "So shall we say, 17 a day for argument's sake?"
TD: "Yeh, s'pose so."
TI: "And do you work 7 days a week most weeks?"
TD: "No, I always have a day off most weeks."
TI: "So you work 6 days most weeks?"
TD: "S'pose so, yeh that's about right."
TI: "And do you go abroad for your holidays?"
TD: "You kiddin, can't afford holidays."
TI: "So you work 52 weeks a year?"
TD: "Yeh, gotta mate; times are hard."
And that's all the tax inspector needs.
17 jobs a day X 6 days a week X 52 weeks a year X the rate in £xx.xx for 3.7 miles as per your fare table = your earnings for the year.
And they know your vehicle's annual mileage from the DVLA MOT website too.