While at present, someone pays Rs 41 per chair for travelling 10 km in a share taxi 4-seater, in a 6-seater, he/she might need to pay Rs 33 for travelling the exact same distance-a saving of Rs 8 per passenger. State transportation chief V N said, 6-seaters will be economical. They’ll decrease congestion and pollution. Also, more passengers can be ferried in a single Cab — thereby reducing consumption of fuel, increasing speed and ensuring optimal use of street space.
More gave example of 100 passengers traveling from Nariman Point to Churchgate station daily. At present, you need 25 trips in four seater taxis and this will shortly be replaced by 16 to 17 trips. While commuters save money, the driver also earns more in a six-seater. So, it’s a win-win scenario, he said.
The final submission date for these accounts to allow the tax authorities to calculate the tax payable is 30th September while the final deadline for submission of the self assessment tax return is 31st January. Miss the 31st January deadline and the penalty fine is 100 lbs. The simplest solution to preparing the cab driver accounts would be to collect all of the cab receipts and expenses together, hand them over to an accountant that will prepare your self assessment tax return and may charge between 150 to 450 pounds for the privilege. That is taxing. Taxi driver accounts do not have to be taxing. You may prepare your cab driver accounts and self assessment tax return yourself but do something.
These cab driver notes in preparing the cab driver accounts and completing the 6 seater taxi tax return would be to help that process.
Taxis bought on Hire Purchase
Claim capital allowances on the Original cost of the automobile, interest and other fees count as business expenses and proceed from the self assessment tax return box 3.61 Other Finance Charges
Taxi Running Costs
When completing the self assessment Tax return cab drivers should enter gas prices in box 3.46 cost of earnings not motoring expenses. A normal check carried out by any competent Inland Revenue inspector enquiring to a self assessment tax return is to check when the cab driver was on vacation and analyze if fuel receipts were contained for this period.
If you run your cab company from House you can claim a percentage of household expenditures as business expenses in the cab accounts. Household costs are likely to be disallowed unless they are specific to the company or a particular area of your house is devoted entirely to your cab business. Using a portion of a room part time would not be enough to include the household expenditures at the cab driver accounts.
You may claim expenses for partners working for your cab business and obligations up to 100 pounds weekly would not bring income tax or national insurance nevertheless any payments claimed from the cab driver accounts have to be real payments for actual work done. The Revenue naturally adopt a strict view on cab expenses claimed for spouse work since it’s an area some people may use to decrease the tax liability. Care is required to warrant the spouse as an expense.