Self employed expenses

Shellbo38

Hi been on universal credit for 3 years a joint claim with my partner who is a self employed taxi driver.
we submit earnings and expenses every month but they are now saying we can’t put down car insurance or car loan as an expense.They just say read the guidance which we have and there’s nothing about taxi drivers it’s more about businesses I’m baffled it’s ridiculous a plumber can claim for his tools but a taxi driver can’t claim for car which is his tool. 

I can see now what they going to say we’ve been overpaid in benefits and now we have to pay it back but why let it go on all this time can anyone help please.

RudolphHucker

There are lots of sites giving guidance for taxi drivers, just google it.

The two below state that you CAN claim for insurance and the INTEREST on a loan to buy a taxi.

Have you considered the flat rate scheme? You claim a fixed rate allowance for the BUSINESS mileage incurred 45p/mile for the first 10000 miles, then 25p/mile above that. The flat rate covers the cost of the car including insurance & tax.  If you claim the flat rate allowance, you don't need to keep fuel receipts, but you will have to keep mileage records.

https://uk-taxreturn.co.uk/index.php/self-assessment-guide-for-taxi-drivers/

https://www.taxeezy.co.uk/index.php/taxi-drivers-tax-explained/

calcotti

The sites linked too by Rudolph are to do with tax and not relevant. OP is asking about Universal Credit. The rules will not be the same.

For loans the rules say
https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/how-to-report-your-earnings-from-self-employment#appendix-1--what-you-need-to-report

If you take out a loan or loans specifically for your business, you may deduct up to a total of £41 in each assessment period for interest repayments only.

I don’t know if a loan to purchase a car is allowable if the car is also used for personal use.

If an expense is for both business and private use, you can only claim the share spent on business use. 

It does say

Permitted expenses can include, for example:

• vehicle costs, for both acquisition and use of a motor-cycle or specially adapted business vehicles, such as vans, black cabs, and dual-control driving school vehicles. BUT if you use an un-adapted car (including a mini-cab) for business, you can only claim flat rate mileage (see below)
• financing costs, such as up to a total of £41 for interest (not capital) on all combined business loans, accounting, legal, insurance and bank charges

calcotti

Full guidance in this document
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/959414/admh4.pdf

Alice_Holt

Just to add to calcotti's posts.

DWP / UC decision making can be variable. If having read the links and info posted by calcotti, you still think that the UC decision not to allow car insurance and loan costs is incorrect, you can challenge / appeal their decision.

Details are here:
https://www.citizensadvice.org.uk/benefits/universal-credit/problems-with-your-payment/challenging-a-universal-credit-decision-mandatory-consideration/

If you need to take the appeal to tribunal, it may be worth seeking advice to confirm your interpretation of the UC regulations in your particular case. 
https://www.citizensadvice.org.uk/about-us/contact-us/contact-us/contact-us/#h-find-your-nearest-citizens-advice

tomtom256

Is it a normal car licnesed as a taxi or is it a car licensed for use only as a/or is a black cab/hackney carriage? This is what makes all the difference with allowable expenses under Universal Credit

calcotti

tomtom256 said:

Is it a normal car licnesed as a taxi or is it a car licensed for use only as a/or is a black cab/hackney carriage? This is what makes all the difference with allowable expenses under Universal Credit

As in the bit I quoted earlier

Permitted expenses can include, for example:

• vehicle costs, for both acquisition and use of a motor-cycle or specially adapted business vehicles, such as vans, black cabs, and dual-control driving school vehicles. BUT if you use an un-adapted car (including a mini-cab) for business, you can only claim flat rate mileage (see below)

Shellbo38

Thank you everyone for advice all sorted now.
Yea it is a normal car used for a taxi but I understand now thanks again for all your help 😊