TAXI DRIVERS

System
System Posts: 100,534 🤖 Admin 🤖
edited 12:08PM in AAT member discussion
Does anyone prepare any accounts for taxi drivers?

If so how would the application fees + test fees be dealt for a private hire taxi?

And what would a rough gross profit between takings and fuel be?

Thanks in advance.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:TAXI DRIVERS

    I look after a taxi driver - I just have a heading in his P&L for licences.

    GP to fuel ratio will depend on the fuel economy of the car - my guy's ratio is about 15% - 20%.

    Taxi drivers are a pet hate of HMRC (who's website is down again - grrrr).

    They dislike them because it is a cash trade, and are convinced that great chunks of their takings are pocketed.

    Does your guy work through a company - if so then the amounts he is paid by xxxx taxis are likely to be reasonably accurate - however if he is freelance then be careful!!!!

    Have you trawled HMRC website to see if there is anything in the manuals about expected margins?

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:TAXI DRIVERS

    Thank you for the feedback.
    just wanted to confirm as this is the first taxi driver on my list.

    So if we say that takings are £100.00, Then fuel should be £15.00 and GP £85.00 roughly?
    I need to be clear so that the client is not under declaring to me his average GP.

    Thanks.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:TAXI DRIVERS

    Yes - that is approximately what my taxi driver has had over 3 years - other drivers will be different - and you need to take into account the price of fuel - I would expect his GP to drop this last year (05-06) as the cost of fuel was so high.

    Lots of factors to take into account - and everyone is different.

    Claudia

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