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
Replies (3)
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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.
HMRC consider such data to be confidential info and as such it is usually either unpublished or redacted from the published manuals.
Bit old but have a look at this to consider the approach:-
https://webarchive.nationalarchives.gov.uk/20100512203610/http://www.hmr...