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In April 2008 HMRC introduced a new self employed tax return for the financial year ended 5 April 2008 replacing the previous self assessment tax return. The new self employed tax return which all self employed taxi drivers are required to complete is in two versions. The long version has to be completed if total sales income exceeds £64,000 for the financial year 2007-08.

It is also worth noting that for the financial year 2007-08 the vat threshold was also £64,000 and any taxi drivers who are required to complete the full version may also be subject to vat which will be aparent to HMRC since customs and excise who administer the vat system were merged with the inlkand revenue some time ago.

The short version is required for taxi drivers whose sales income is under £64,000. In addition if the short version is completed and sales turnover is less than £30,000 then completion is further simplified by taxi drivers being able to enter a total for expenses as opposed to an expenditure analysis.

FILING TAXI TAX RETURNS

Also new for 2007-08 tax returns is te filing arrangements. Previously paper copies of the self assessment tax return were filed by 30th September each year to enable HMRC to calculate the income tax and national insurance contributions payable, with the final filing date being the following 31st January.

For 2007-08 self employed businesses including taxi drivers are requested to file the tax return online by 31st October. The paper copy of the tax return can still be filed by 31st January by those drivers who have not filed online. To file a tax return online taxi drivers need to register first and obtain a password which can take 7 to 14 days to arrive in the post and so eartly registration is advised.

Failing to submit tax returns online results in a £100 penalty fine.

Taxi drivers who prepare their own taxi driver accounts may wish to visit www.diyaccounting.co.uk/taxi.htm which has a taxi driver accounts package (priced at £11.99) written on excel templates that automatically produces an excel copy of the new tax return and calculates the potential income tax and national insurance liability.

 

I give very very thanks to HMRC for their services. I have 100 taxis and I can’t manage my taxi account properly. When I read your post there is a lot of pleasure. Please can you tell me how I achieve this taxi driver accounts package? Please send me brief information at http://www.cab-accounts.co.uk/. Thank you very much to show this helping post.

Hello,

DIY Accounting's Cabsmart product is design for individual Self Employed tax drivers. It includes a function that compares mileage against vehicle servicing costs to work out the most tax efficient approach.

Our Taxi Driver package is available from here: http://www.diyaccounting.co.uk/taxi_driver_accounts/order.htm

If got a few taxis, you may need something a little bigger like DIY Accounting's Limited Company package. This includes a fixed asset register for a small number of vehicles. If the 100 taxi's are driver owned then it might be ok. If your business owns the whole 100 car fleet outright I think you'll have out grown the Limited Company Package too.

Our Limited Company package is available from here: http://www.diyaccounting.co.uk/company_accounts/order.htm

Thanks,

Antony.