self employed help

taxi-29

Hi people not sure if this is the right place but any help would be appreciated. well i started as a taxi driver last year and have worked out my earnings after expenses which is £11,000 for 8 months but my expenses are £22,000. i just wanted to know do i claim the whole 22k? and what kind of percentage do u get back?
thanks for helping

HappyMJ

Yes you claim the whole lot...You get nothing back but if you make a profit in future years you can offset that profit against this years loss.

taxi-29

sorry not sure if i put it right. ive made £11,000 after my £22,000 expenses which are my rent, fuel and a few other things which i thought u claimed for and got a percentage back as a rebate????

antrobus

taxi-29 wrote: »

sorry not sure if i put it right. ive made £11,000 after my £22,000 expenses which are my rent, fuel and a few other things which i thought u claimed for and got a percentage back as a rebate????

Well yes, it depends on what you mean by 'expenses'. Do you mean the expenses of running your business, or are you talking about your own expenses?

taxi-29

hi antrobus im not sure if they would be classed as my own expenses or the running of my business, as i thought i was classed as my own business? being a taxi driver

John_Pierpoint

The expenses of being a taxi driver are items such as hire of cab, hire of meter, diesel, sat nav, contribution to controller, CRB check, Sat Nav, etc. etc.

You won't get much help from tax rebates for the costs of having somewhere warm to sleep, and the costs of food and clothing - we all need those just to live.

If you can post a list of your "expenses", someone will comment on their suitability as tax allowable business expenses.

https://forums.moneysavingexpert.com/discussion/1856785

no-oneknowsme

Hi Op.
If I am getting this correct , then your TURNOVER - Which is every penny you earned by driving your taxi - is £33,000 ? This is the £22k expenses plus the £11k you say you have made.

This means that you will NOT pay tax on the £22k but you WILL pay tax on the other £11k.

Your expenses are quite high if you dont mind me saying. Have you remembered to deduct any percentage that is for your own personal use?

My Husband drives a cab and the things we claim as expenses are : Depot rent/radio hire , fuel , psv testing , repairs , cleaning of the taxi , road tax , taxi insurance sat nav , purchase and fitting of the taxi meter , cost of badge and crb check.

As our car (taxi) can on occasion be used for our own personal use and is only used as a taxi for 5 days out of the week , we concluded that we would calculate our allowable expenses to reflect this and so we claim 70% of the expenses as business and the remaining 30% as personal use.

In saying this though , the depot rent/radio hire , taxi meter , badge and crb check we claim as 100% business as we wouldnt need them if the car was not a taxi.

Use this link to enter your TOTAL EARNINGS OF £33K and your expenses of £22k to find out how much tax and class 4 NIC you will pay when you file your return. , which I have calculated at £1,327

http://www.selfemploymentcalculator.com

taxi-29

The taxi is not mine as I rent it from the company and my expenses are mainly made up of fuel and rent for the car. The rent alone is 350 a week. I have had a lot of time of since christmas but still had to pay the weekly rent

no-oneknowsme

taxi-29 wrote: »

The taxi is not mine as I rent it from the company and my expenses are mainly made up of fuel and rent for the car. The rent alone is 350 a week. I have had a lot of time of since christmas but still had to pay the weekly rent

Hi again.

The rest of my post still applies then . Your TURNOVER was £33k , expenses were £22k so your PROFIT and so taxable amount is £11k . Did you put these figures into the link I posted? It equates to £1300 tax and NIC's due and these are payable to HMRC by the deadline of 31st Jan 2012 if you plan to file your return online. Have you registered to file the return online yet?

taxi-29

no im not registered online but will do soon, so with the expenses do i put it all in to claim and what kind of percentage?
and thanks for all the help

pipscot

taxi-29 wrote: »

no im not registered online but will do soon, so with the expenses do i put it all in to claim and what kind of percentage?
and thanks for all the help

If your business expenses are all entirely business related (i.e. no personal use of your vehicle) then you don't need to worry about percentages. You need to only be concerned about 3 things - turnover (how much you received from your customers), expenses (all business related expenses e.g. fuel, vehicle hire, stationary, phone...) and profit.
You work out your profit by subtracting the business expenses from the turnover
TURNOVER - total EXPENSES = PROFIT

the profit is what you earned in the last year (i.e. it is equivalent to the gross wages of an employed person). this is the figure that the tax office use to work out what tax/NI you should pay and is also the figure you should use if you are entitled to claim working tax credit etc.

The only time you need to worry about percentages is if you have used something part business and part home use.