Monthly Archives: February 2016

Buying a taxi- Think emissions

Many drivers out there are wondering about their next private hire taxi car purchase.

Well it all comes down to capital allowances for taxi vehicles

There are many considerations like reliability, comfort, economy and customer appeal.

We have noticed that a lot of Uber taxi drivers seem to favour the hybrid car for taxi use. This is possibly due to the economy, comfort for passengers and ease of drive around many of our cities.

But do not forget to consider the capital/first year allowances you can claim against your taxable profits. HMRC have set the amounts you can claim by way of % to the emission of the vehicle.

So for 2015/16 the rates are:

New or unused cars under 75g/km or less (or the car is electric) – you can claim First Year Allowance which is the whole cost of the car against your profit

New or unused cars between 75g/km and under 130g/km you can claim 18% of the capital cost against your profit

Second hand, CO2 emissions are 130g/km or less (or car is electric) you can claim 18%

Over 130g/km you can claim only 8%.

So choose wisely.

 

HMRC penalties for late Self Assessments

We at Taximanager are proud to be able to announce that all of our clients tax returns were sent in on time, despite some last minute entries.

With an accountancy fee of only £79, when there is a manadatory £100 penalty for sending your return in late, it does not make sense why taxi drivers are not making use of this greast webAPP. We welcome a lot of UBER taxi drivers who have joined recently.

The whole idea is for taxi and private hire drivers to make regular entries of recording income and expenses as often as they can. The system is there to use, and gives an immediate up to date profit & loss account.

There are probably taxi drivers out there who still may not have sent in their return, but unfortunately HMRC will not go away and they will charge penalties.

An example is someone who does not submit their 2015 return until 12 June 2016 will get charged £530 even if they owe nothing.

There is still opportunity for drivers to purchase our Taximanager 2015 PRO package and as soon as the entries have been made we can submit the return to help minimise penalties.

Act now or pay a heavy price later!