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.