TAXI DRIVER NIGHT COVER PAYMENT

TAXI DRIVER NIGHT COVER PAYMENT

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Self employed taxi driver client is required to be available for night cover once a month by firm he does work for. However he can pay another taxi driver (who does work for the same firm) to cover this night for him if he does not want to do it himself. The other driver gets the payment even if no passengers are picked up. Client thinks this should be a tax allowable expense but I am not sure as I  think it probably does not pass the wholly and exclusively test. Any enlightenment welcome please.

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Stepurhan
By stepurhan
24th Jun 2015 15:12

Who gets income

If there are passengers, who gets the income?

If your client, then it is a subcontract payment to generate income. If the other driver then it will almost certainly be viewed as made for personal reasons. Even if he would lose the firm contract if the night wasn't covered, it is hard to argue he "had" to pay someone else to do it.

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