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HMRC taxi fuel costs to income ratio

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Good afternoon all.

Many moons ago I had an equiry on a local private hire operator. Quite simply the fuel costs did not bear any relation to the anticpated income disclosed by the tax payer.

From memory, I think the officer mentioned an anticipated ratio of £7 income to £1 of fuel (7:1). However this was many years ago and perhaps pre self assessment. The file has of course been disposed of in the appropriate fashion.

So the question is, does anyone have a more current grasp on anticipated ratios? It is the usual situation of trying to avoid a potential issue with a current tax payer and perhaps them failing to disclose all income and/or overstating fuel costs.

Not an ideal situation to be in I know.


Many thanks in advance




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07th Jun 2019 15:43

7:1 seems fairly reasonable but I wouldn't be surprised if some drivers went a bit lower, maybe 6:1.

I have no inside knowledge on what HMRC's guidelines might say, my last taxi enquiry focused only on the mileage and didn't address fuel costs specifically.

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07th Jun 2019 15:44

HMRC consider such data to be confidential info and as such it is usually either unpublished or redacted from the published manuals.

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07th Jun 2019 16:44

Bit old but have a look at this to consider the approach:-

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