UBER OR TAXI DRIVER? CANGAF LIMITED MAKES YOUR TAX DUTIES CLEAR!
The freedom of an Uber or taxi driver has one setback: the tax return. You’ll need to figure out the correct calculations and what vehicle-related expenses you can claim, as well as submit the Self-Assessment to HMRC. How can you ensure you’re paying exactly what you owe, and getting all the relief you’re entitled to?
ALLOWABLE EXPENSES FORSELF-EMPLOYED UBER DRIVERS/TAXI DRIVERS
For Uber drivers, your UK tax return is no different than an individual running their own business. You’ll need to tell HMRC any taxi driver’s expenses you incur as there are plenty of opportunities to claim certain expenditure back.
At Cangaf we can help reduce your tax liability on a UK Uber drivers tax return by identifying allowable expenses, including:
Mileage –As self-employed, you can claim mileage allowance from HMRC for the usage of your personal vehicle for business purposes. HMRC provides two methods you can claim self-employed car expenses through. You can claim mileage at a flat per-mile rate or claim all your actual business car expenses. Continue reading to find out which method will be best for you. However, if you choose to claim for mileage, you can’t claim for either of Car lease repayments or new car purchase.
If you also drive your vehicle for private purposes
If you use your vehicle for both private and business purposes, you will only be able to claim a self-employed mileage allowance for your business mileage. To accurately manage this, you will need to regularly record your total mileage – both for private and business trips.
You will also need to keep in mind HMRC’s rules on what is considered business travel:
- Travel between your permanent workplace and your temporary work
- Travelling between temporary workplaces
- Travel between two workplaces in the same employment
- Travelling from home to another workplace if “home” is your permanent workplace due to the requirements of the job.
Want to find out more ? look no further than Cangaf Ltd. Contact us today for a free, no-obligation quote, and let us help you with all your accountant needs!