Taxi Driver

Taxi Driver

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A taxi driver uses his vehicle for business and then personal usage as well.

The expenses incurred on the business side are as below:

Road Tax

Depreciation

Vehicle plate licence

fuel

Insurance

Vehicle Service+Repairs etc

How best to account for the private (non business) use of the vehicle please?

Thanks

Replies (10)

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By Portia Nina Levin
02nd May 2015 12:49

(No subject)

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By andy.partridge
24th Aug 2014 15:10

Sole trader?

Identify the proportion of personal usage and add it back in the tax calculation.

If you are still stuck, then what is it that you are stuck on?

 

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By Portia Nina Levin
02nd May 2015 12:49

(No subject)

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By andy.partridge
24th Aug 2014 15:29

No it isn't

One step at a time. We might winkle out the mileage in due course.

Anyway, I thought you weren't playing.

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By [email protected]
24th Aug 2014 15:42

 

 

Client is sole trader.

The client tells me that the vehicle is used 10% for private use.

So do I add back the 10% of the expenses that may have a dual role?

Like the road tax, the road tax would have had to been bought by the business even if there was no private use. So do I leave this out. Similarly the taxi insurance?

The repairs ok, I can add back 10% as this would mean the wear and tear as per private use was more compared to had it been just business.

I am stuck on analysing which expenditure to add  back under the private usage.

 

Thanks

Thanks (0)
By johngroganjga
24th Aug 2014 15:58

If you are satisfied that 10% is the right private use percentage you restrict the capital allowances on the vehicle by 10% and you add back 10% of the motor expenses.

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By Portia Nina Levin
02nd May 2015 12:50

(No subject)

Thanks (1)
By johngroganjga
24th Aug 2014 16:13

If you want to open an argument with HMRC that you should only add back the incremental cost of the car being used personally, you are likely to be met with an argument that client should only get relief for the incremental cost of the car being used in the business.

Much easier to let sleeping dogs lie and adopt the conventional approach.

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By tonyh
24th Aug 2014 17:52

Suggest:

That you tell him to keep a mileage log. HMRC find it easy to attack taxi drivers.

If your client is unlucky and has questions asked you may regret using 10%.

If they ask for documents with mileage recordings and your client has done 100K in the year they are going to be looking for income from 90K.

 

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By chatman
25th Aug 2014 09:46

TripLog is good for recording journey details.

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