Taxi Driver Allowances

jenny3549

Hi All,

I'm hoping someone can give me some general advice. An ex colleague of mine became a taxi driver in 2008 and has been enjoying himself immensely ever since. He is also now running another small upholstery business. We got talking about his SA and he asked me about claiming for the cost of his taxi. Typically I could only choose PTC or BTC as my one option at Technician and went for PTC. I think this would fall under business but don't have any books to check.

The taxi was bought outright in 2008 for approx £23000 and he has not so far used any allowance for it on his SA. Could anyone point me in the right direction to just give him a general idea?

Thanks in advance for your help.

Jenny

Nick

capital allowances claim

Hi Jenny

As he (I assume from your post) purchased his taxi before 6th April 2009 he should be able to claim capital allowances on the cost to a maximum of £3,000pa (old rules). That will effectively reduce his tax liability for each year the taxi is in use. Have a look at this link - it may be of some help.

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073789933&type=RESOURCES

Regards

Nick

jenny3549

Thanks Nick - that's great.

deanshepherd

He could qualify for AIA or FYA if his vehicle is a qualifying hire car (e.g. hackney carriage, black cab or limousine..).