Work in the private car hire industry

Jackmumford

Yeah I completely understand your point till you built up a clientele you more probably wouldn’t break even, like most successful businesses the beginning years are difficult. I’m in a lucky position where financially I’m not under burden so I feel like if I can do it I should do it now, try and build something whilst I don’t have financial pressures. Perhaps I’m being naive but the people I know who have done it do well so it must be possible?

unholyangel

SHAFT wrote: »

Why? If the council test it as a taxi or mini cab it doesn't need an mot.

I didn't say it did. I was stating usually it requires two hackney tests a year - which is the taxi/PHV equivalent of a MOT.

JGB1955

My husband was (until he retired) a Privater Hire Driver. His brand new vehicle required an MOT. Insurance will be more than £2,000 per annum. Licences, another £1000. You cannot make money out of this once you've taken depreciation into account. It can only work as a 'top up' to a pension. Deprecation of a vehicle can be more than £6.000 per annum.. that comes out of your 'profit'.

SHAFT

unholyangel wrote: »

I didn't say it did. I was stating usually it requires two hackney tests a year - which is the taxi/PHV equivalent of a MOT.

Ok I'm with you now, but if he buys a vehicle over four years old some authorities will want it tested 3 times a year.

sheramber

https://www.gov.uk/taxi-driver-licence

https://www.gov.uk/private-hire-vehicle-operator-licence-outside-london

Jackmumford

Thanks for the reply, nice to hear it from close to first hand. Doesn’t sound financially viable at all in that case, isn’t the insurance, licensing, fuel and vehicle costs if that’s hp, leasing or buying out right tax deductible so you get a good return off all those things off your tax bill leaving your earnings as wages?

AdrianC

Go with an established taxi firm, they may well put you into a car - for a cost, of course.

unholyangel

Jackmumford wrote: »

Yeah I completely understand your point till you built up a clientele you more probably wouldn’t break even, like most successful businesses the beginning years are difficult. I’m in a lucky position where financially I’m not under burden so I feel like if I can do it I should do it now, try and build something whilst I don’t have financial pressures. Perhaps I’m being naive but the people I know who have done it do well so it must be possible?

Its always possible to break even. It just might require some very long hours. All I'm telling you is to research specifics for your area (it can vary council to council) before making such an investment.

A typical weekly cost in my area would be £200-500 a week - which they incur whether a wheel turns or not.

Working evenings & weekends also increases the risk of damage/cleaning with spillages & body fluids.

SHAFT

Jackmumford wrote: »

Thanks for the reply, nice to hear it from close to first hand. Doesn’t sound financially viable at all in that case, isn’t the insurance, licensing, fuel and vehicle costs if that’s hp, leasing or buying out right tax deductible so you get a good return off all those things off your tax bill leaving your earnings as wages?

Some of it will be tax deductible yes, but given you're well paid you'll be paying 40% tax on everything you earn. You'll have already used your tax allowance in your day job. Time to speak to an accountant.

Jackmumford

Yes I was thinking about perhaps starting a limited company and having it at a separate entity, it’s interesting because from the sounds of it from people on this forum it’s a bad idea. More research is needed. Would like to actually speak to someone who does it and does well because they’re out there perhaps it’s down to luck. Anyways, cheers for your reply