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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 ultimate 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 way out 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 returns 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.

The complete article is at:

http://taxreport.info/document.php?id=79

Just want to share with you guys

Brookes

There has been changes in the self assessment procedures.

In April 2008 HMRC introduced a new self employed tax return to replace the self assessment tax return which is applicable to the financial year just ended 5 April 2008. The new tax return is in two formats. The full version for businesses with a turnover over £64k, also the vat threshold limit for 2007-08 so if you complete this return then you may be invited to become vat registered. The short version is for businesses with sales turnover under £64k and is simpler than the previous self assessment tax return. Also the expenditure analysis is optional if sales were under £30k.

Caused me a few problems as I produce accounting packages specifically for taxi drivers that automatically complete the tax returns so had to update all my DIY Accounting Cabsmart packages to complete the new tax returns.

Submission dates have also changed. The procedure was to submit by 30 September but has now changed so that paper copies taxi driver accounts (and all self employed businesses) are now required to be filed online by 31 October although paper copies of the tax return can be submitted by 31st January to avoid the late filing penalty.

If taxi drivers intend to file their accounts online and it isn't too difficult the driver needs to register on the HMRC site first and since the password is posted out by snail mail it is advisable to register at least a couple of weeks in advance and preferably as soon as possible. If you have registered to file the taxi drivers accounts online you still have the option to send in paper copies if you wish.

And regarding taxi accountants, many clients who use the cabsmart package find they no longer need further professional advice. www.diyaccounting.co.uk/taxi.htm