taxi driving and costs
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skater_kat
Posts: 751 Forumite
my partner is thinking of setting up as a ltd company instead of sole trader. currently she sorts out her travel for delivering training courses as claiming 45p per mile as expenses for the business travel.
this got me thinking randomly as i was trying to get to sleep last night, about taxi drivers - presumably they either claim the actual cost of their vehicle runing costs OR business mileage.
if they claimed business mileage at 45p per mile as a self employed cabbie, their profit would be next to nothing because they drive so many miles.
i'm genuinely curious how this works? can anyone enlighten me?! its niggling at me now!thouands of uber drivers seem to make it work?
this got me thinking randomly as i was trying to get to sleep last night, about taxi drivers - presumably they either claim the actual cost of their vehicle runing costs OR business mileage.
if they claimed business mileage at 45p per mile as a self employed cabbie, their profit would be next to nothing because they drive so many miles.
i'm genuinely curious how this works? can anyone enlighten me?! its niggling at me now!thouands of uber drivers seem to make it work?
0
Comments
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there are different rules for taxi drivers and no sane person would claim the mileage rate when they can claim actual costs instead
don't confuse rules for employees of limited companies with taxi drivers0 -
It's only 45p for the first 10,000 miles, anything more and it's reduced to 25p per mile.
As 00ec25 rightly says, there are also special tax rules for taxis, and their fixed costs are so much higher, i.e. particularly car insurance, the HMRC mileage rate is highly unlikely to be as good.0
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