Taxi drivers in the UK must fill in a self assessment tax return if they have worked as a self employed taxi driver at anytime during the financial tax year. Self assessment tax returns should be filed by 30th September each year although the final deadline is the following 31st January. Failing to file the taxi accounts by 31st January attracts a 100 pounds late filing penalty with interest being charged on any tax not paid by this date.

The simplest solution to preparing the taxi driver accounts is to collect all the taxi receipts and expenses together, hand them over to an accountant who will prepare your self assessment tax return and might charge between 150 to 450 pounds for the privilege. That is taxing. Taxi driver accounts does not have to be that taxing. You can prepare 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 first 10,000 miles and 25p per mile thereafter. You may not claim mileage allowance and vehicle running costs. Should you choose to claim the mileage allowance then keep good records of mileage covered, purpose of journey.

Taxi Capital Allowances

If you bought a vehicle in the financial year 2007-08 and used the vehicle as a taxi you can claim a first year writing down tax allowance of 25% of the cost of the 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 allowance on the balance not yet claimed. Many taxis are bought and sold each year and where a taxi is sold the capital tax allowance that can be claimed is the difference between the written down value for tax purposes and the 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 vehicle, 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 would be to check when the taxi driver was on holiday and examine if fuel receipts had been included for this period. Not many tax returns are enquired into as the system is based upon trust but taxi drivers should ensure their accounts do not contain this fundamental tax fiddle. Taxi running costs also include repairs, servicing and parts including tyres, road tax, taxi insurance and AA/RAC membership. Taxi administrative costs and expense items such as hiring the radio should be entered under general administration expenditure.

Household expenses

If you run your taxi business from home you can claim a proportion of household expenses as business expenses in the taxi accounts. Household expenses are likely to be disallowed unless they are either specific to the business or a specific area of your home is devoted entirely to your taxi business. Using part of a room part time would not be sufficient to include the household expenses in the taxi driver accounts.

Spouse Costs

You can claim expenses for partners who work for your taxi business and payments up to 100 pounds per week would not attract income tax or national insurance however any payments claimed in the taxi driver accounts must be real payments for real work done. As the claiming of a partner wages as a valid business expense is an area potentially open to abuse the Inland Revenue naturally take a strict view on such claims. Care is required 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 may give rise to an Revenue enquiry into the self assessment tax return.

The better and more detailed a taxi driver keeps records of income and expenditure throughout the year offers the best chance to pay the least taxes at the end of that year. This is because with meticulous records every self employed taxi driver can then do the calculation of whether to claim mileage allowances ot vehicle running costs. Without good records the most tax efficient option cannot be made. The decision to claim mileage allowance or 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 allowance of 3,000 pounds will often outweigh the potential mileage allowance although if the vehicle is low value the mileage allowance might be the best option and a method of saving valuable tax pounds which you are entitled to. The best taxi accounting software will automate the comparison of taxi mileage allowances with taxi running costs doing the taxi accountants work for you.

By Paul Headley

Operating a successful taxi business is becoming much harder for some operators.

The credit crunch has hit hard for many as the public are tightening their money belts every way they can, including the use of taxis. However, the current and on-going drunk driving campaigns by the government is having a positive effect on increasing the number of taxis the public are using at night.

Taxi drivers realize that some of the most profitable shifts are late at night. Although this may be the most lucrative period the increase in potential abuse and violence also increases.

Licensed hackney carriages are the only type of vehicle that can legally be hailed and stopped by a member of the public. All other vehicles which are for hire for public use must be pre-booked prior to collecting a fare paying passenger or passengers.

It is also a requirement that a booking log is kept by the minicab operators. At the time of booking the name and collection address has to be recorded, providing private hire vehicles with some form of identity of the person using their services which may help should any violence, abuse or damaged be caused to the driver or vehicle.

Licensed hackney carriages do not have to keep logs and are therefore more at risk.

There are a number of things that taxi drivers can do to try and reduce risk.

1. Keeping contact via the on board radio system. Calling the office frequently or contacting them as soon as any trouble begins to brew may help protect the drivers.
2. Fitting a convex mirror which provides a clear view of what’s occurring in the back of the vehicle to enable the driver to pre-empt any dangerous situations.
3. Drivers of saloon cars can install a shield made from material which will help provide protection from a knife or hard bodily impact, such as a punch.
4. Many local councils are helping reduce the risks of abuse and violence for taxi drivers by installing video cameras in licensed taxi and minicabs. Taxi insurance companies welcome all measures to reduce risks and although they may not offer a specific discount for vehicles which are fitted with video equipment any recoded footage of violence and damage can be used to help validate a claim.
5. Taxis drivers do have the right to refuse a passenger if they believe they pose a high risk.
6. Those who use a saloon car should consider restricting front seat passengers.
7. Keep the window only open enough to be able to speak to people not low enough for people to reach in and assault or grab you.
8. Returning to the office and depositing money on a frequent basis can also help reduce the risk of loss.

Many taxi insurance companies will also provide cover for loss of money should it be stolen. There are restrictions as to the amount of money they will provide cover for, so it is well worth contacting them to see whether they include or offer this within the insurance cover.

About the Author

Staveley Head are a leading UK insurance broker for taxi insurance

By Paul McDuffy

Paul McDuffy is an International Consultant for Chicago taxi service companies. With exceptional knowledge of the River Grove taxi services industry, Paul also works closely with a internet marketing tool team.

Yellow taxi tutors are individuals or taxi classes that provide necessary mandatory taxi driver training to persons wanting to professionally drive a yellow cab. In general, there are legitimate, licensed organizations and there can also be unlicensed persons operating taxi courses.

The special license you need to get to drive a yellow taxicab is called a hack license and having it can be a valuable asset for anyone who needs steady work.

So, for example, what if you live in or near New York City and are looking for taxi classes and organizations that can help you with the paperwork and prepare you to pass the city exam so you can start working?

You will need to attend mandatory taxi driver training classes and then study so that you can learn the various landmarks, highways, bridges and routes needed to correctly carry passengers to various destinations throughout New York City. If you can do this, then you will be eligible to get the yellow cab driver license.

Over the past two decades, as taxi driver training has become part of most major US city requirements, a number of self described educators have begun to provide a variety of tutoring services
for persons seeking to obtain the operators license.

In New York City, the taxi tutoring industry has its base due to a requirement that all applicants for the New York City Yellow Cab License must successfully complete an English proficiency exam as well as pass the map reading, geography and rules exam.

With almost ninety percent of the yellow cab driver applicants being immigrants, English training definitely becomes an important part of the live classroom training needed to pass the exam. The English proficiency factor is also very evident when comparing test scores on the geography and rules portion of exams for persons with higher versus lower levels of English proficiency.

One of the licensed yellow taxi tutors schools for the past decade has been the American Master Cabbie Taxi Academy, a designated provider of mandatory training for yellow cab drivers. Since its inception in 1996, the Academy has focused on the English proficiency by offering tutoring programs. The programs are designed specifically to enhance and expand available training for the industry with specialized English tutoring components.

As with any good thing, there are imitators. Over the years, some one man companies working out of small offices have attempted to present themselves as legitimate taxi training schools. Among a number of quality issues that arise from unlicensed schools is that they all approach the training from an ethnic standpoint. An Indian tutor courts Indian prospects and a Bangladesh tutor courts Bangladesh prospects and so on.

In their presentation or sales pitch, they explain that they can teach in the language of the student. This surely sells a few extra classes, however, it does not mean that the quality of the instruction is acceptable. There is no official organization overseeing the operation and if the student has a business problem with the unlicensed operation, there is no agency to complain to for recourse. This kind of place is simply not legally licensed.

It also means that classes are typically not provided seven days per week or that a full time office staff does not exist to provide support services such as scheduling exams, medical appointments and drug test scheduling. Most importantly, it does not provide the continuity of necessary services provided at one location which should be expected.

The one man company type will typically sell its services based on language and at the same time implies that it is connected to the official city licensing apparatus. This claim simply is not true and should warn the prospective student that separating them from their money may be the objective. The student should ask if everything required by NYC can be obtained from this kind of place or must the licensing test and required classes be taken elsewhere.

What is important to remember is if you are interested in driving professionally in New York City, do business only with licensed schools. These are organizations that are required to meet high quality standards in the yellow taxi tutoring training provided to all students. When you do business with a school that is properly licensed by the city, you have assurance that the instruction you will receive is relevant and that it will prepare you for achieving success with the license test.

About the Author:
If you know someone who needs a job and needs help preparing for the New York City yellow cab driver test, have them check out the yellow taxi tutoring classes including costs, schedules and forms. David Lee Buster has the NYC hack license and is a writer for the American Master Cabbie Taxi Academy located in New York City.

by Ann Brown

Taking a taxi we focus on our comfort, but we should be also concerned about our safety. We reduce a risk when we order taxi online or find it in Yellow Pages, but if we do not do it, there is a list of taxi tips you should know before getting into a cab.
1. Always use only licenced Taxis and PHVs.
The driver must have their ‘badge’ and the car its ‘plate’. Identify them prior to entering the vehicle and closing the door. They should display licence number, expiry date and the picture of the driver or description of the vehicle. You should never agree to travel in an unlicensed vehicle with an unlicensed driver. If they are not licensed, have not been vetted for safety purposes and are not insured for your journey.
You can hail a taxi in the street or get one at a rank, or pre-book it. Private hire vehicles (PHVs, known as minicabs) must always be booked through a licensed operator. If you are approached by someone in the street offering you or your friends a taxi or any other type of vehicle for hire, ignore them.
2. If you pre-book your taxi check that the taxi that arrives is the one you booked.
Ask the Operator for a description of the car and check these details when the vehicle arrives. It would be good practice to also ask for the name of the driver beforehand.
3. Let someone else know the details of your journey.
If you are especially cautious, you might consider sending a text message to friends before entering the taxi. In your message, be sure to include the license plates, driver’s name, and identification number.
4. Do not get into the cab if there is someone else in addition to the driver
Be wary of getting into taxis that already have strangers on board or of being asked to share with strangers. Anyway, splitting the bill is confusing and shared taxis are not nearly as comfortable.
5. Always sit in the back of the vehicle behind the driver and carry your mobile phone in your hand so it is easily accessible.
Know emergency contact numbers and if a taxi driver starts giving you trouble, let him or her know that you know the appropriate emergency contact numbers, and you’re not afraid to use them.
6. Know where you are going
It is harder for taxi drivers to cheat you if you know exactly where you’re going. Before you accept shortcuts, detours, and special stops, make sure you know where you are, where you were, and where it is you ultimately want to go. Know the route or general direction to your destination.
7. Fares and tipping
To avoid potential disputes with taxi drivers, know the local tipping customs. Ask a hotel staff member or your host for the typical price range to your destination and the amount of an appropriate tip. Try to get a firm or estimated fare from your driver before you start.
8. Pay while in the cab
Know enough about the local currency to identify the bill. Make sure you have small bills as drivers won’t always be able to break large notes. Exchange money while you are still in a taxicab. That way, you can have your purse or wallet properly stored once you exit the taxi.
9. Avoid travelling on your own
There is safety in numbers, so traveling with a companion minimizes your risks and makes it much less likely that you will ever encounter a potential problem.
10. Ensure your safety outside the taxi.
When you get to your destination, ask the driver to wait and watch until you are safely inside or ask to be let out in a well-lit area where there are plenty of people.

You do not need to bother much about your safety if you place your taxi request with online booking company such as www.FairFare.co.uk. First of all, you are sure that you go with fully registered taxi operator. You receive all your journey details and taxi operators contact details to your email box, and you have saved a clear record of all your previous journeys. Moreover, you can try your barging skills entering your price expectations and when your request is booked, your price is guaranteed. These are just few benefits of online taxi booking with http://www.fairfare.co.uk

About the author :  Aged 26, professional, interested in many areas of life like: history, online shopping, travelling, leading an eco friendly life style. Currently may favourite website http://www.fairfare.co.uk

Fabiola Castillo is an online marketer for the website NinjaCOPS SuperStore. This virtual store specializes in personal defense products where you can buy pepper spray, kubatons keychains, wireless hidden cameras, nunchaku technique videos, Taser stun guns, expandable steel batons, and many other home security products.

Article Source: http://EzineArticles.com/?expert=Fabiola_Castillo