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Tax allowance for taxi plates
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Author:  187ums [ Thu Jul 17, 2014 3:23 pm ]
Post subject:  Tax allowance for taxi plates

I was wondering if someone purchased a taxi plate in a restricted area for say £65000 would he able to claim any of it against tax?

This may take the form of interest payments on loans, or the unofficial plate value?

This seems to be a bit of grey area, some experts say yes, others say only the official value of the plate (£450) can be claimed.

I would have thought with all the tax that would have to be paid, they would allow some sort of allowance?

Author:  grandad [ Thu Jul 17, 2014 4:14 pm ]
Post subject:  Re: Tax allowance for taxi plates

187ums wrote:
I was wondering if someone purchased a taxi plate in a restricted area for say £65000 would he able to claim any of it against tax?

This may take the form of interest payments on loans, or the unofficial plate value?

This seems to be a bit of grey area, some experts say yes, others say only the official value of the plate (£450) can be claimed.

I would have thought with all the tax that would have to be paid, they would allow some sort of allowance?

This may be an interesting point. Is the person selling the plate VAT registered? £65,000 is only £16,000 below the VAT threshold so they may be liable for VAT on the sale price.

Author:  skippy41 [ Thu Jul 17, 2014 4:37 pm ]
Post subject:  Re: Tax allowance for taxi plates

Does it also include the vehicle, as they need to be both together to legally transfer

Author:  187ums [ Thu Jul 17, 2014 4:40 pm ]
Post subject:  Re: Tax allowance for taxi plates

Sorry, plate and cab come together as a package

Author:  wannabeeahack [ Thu Jul 17, 2014 8:21 pm ]
Post subject:  Re: Tax allowance for taxi plates

Whatever is on the invoice is a business cost and tax deductable, pay by cheque to create a paper trail and get 22% tax relief

(though capital items tax relief is over 4 years?)


IF you get charged VAT, and the VAT number checks out, consider going VAT registered to reclaim the VAT element


The seller can only charge VAT on the items if he PAID VAT on them I think


I have another plan if you PM me...

Author:  wannabeeahack [ Thu Jul 17, 2014 10:05 pm ]
Post subject:  Re: Tax allowance for taxi plates

If you paid £65K youd write it all down over 4 years

40% year one then 3 x 20%

the other way is to create your wifes own hire company, she buys it and writes it down over 4 years you hire it off them at £200 a week which is 100% tax deductable weekly creating an extra £15000 a year of your own tax allowances

Author:  187ums [ Thu Jul 17, 2014 10:23 pm ]
Post subject:  Re: Tax allowance for taxi plates

That's interesting, surely the tax man would say the plate is only worth £460, the cab £15000, the rest is for the right to trade and not a capital expenditure?

Author:  wannabeeahack [ Thu Jul 17, 2014 10:34 pm ]
Post subject:  Re: Tax allowance for taxi plates

187ums wrote:
That's interesting, surely the tax man would say the plate is only worth £460, the cab £15000, the rest is for the right to trade and not a capital expenditure?


an Invoice is an Invoice, its not for the taxman to query

Author:  wannabeeahack [ Thu Jul 17, 2014 10:40 pm ]
Post subject:  Re: Tax allowance for taxi plates

its the seller with the problem, if he paid £400 for a plate he sells at £15,000 he owes a LOT of tax

Author:  Sussex [ Fri Jul 18, 2014 12:15 am ]
Post subject:  Re: Tax allowance for taxi plates

187ums wrote:
I was wondering if someone purchased a taxi plate in a restricted area for say £65000 would he able to claim any of it against tax?

This may take the form of interest payments on loans, or the unofficial plate value?

This seems to be a bit of grey area, some experts say yes, others say only the official value of the plate (£450) can be claimed.

I would have thought with all the tax that would have to be paid, they would allow some sort of allowance?

It's a business transaction so I can't see why normal tax rules don't apply.

Author:  grandad [ Fri Jul 18, 2014 3:52 am ]
Post subject:  Re: Tax allowance for taxi plates

wannabeeahack wrote:
If you paid £65K youd write it all down over 4 years

40% year one then 3 x 20%

the other way is to create your wifes own hire company, she buys it and writes it down over 4 years you hire it off them at £200 a week which is 100% tax deductable weekly creating an extra £15000 a year of your own tax allowances

Would the wife require a credit license for this?

Author:  roythebus [ Fri Jul 18, 2014 8:07 am ]
Post subject:  Re: Tax allowance for taxi plates

grandad wrote:
wannabeeahack wrote:
If you paid £65K youd write it all down over 4 years

40% year one then 3 x 20%

the other way is to create your wifes own hire company, she buys it and writes it down over 4 years you hire it off them at £200 a week which is 100% tax deductable weekly creating an extra £15000 a year of your own tax allowances

Would the wife require a credit license for this?
No, anyone can start a hire company. If it was a hire PURCHASE company, then you'd need a credit licence.

Author:  roythebus [ Fri Jul 18, 2014 8:14 am ]
Post subject:  Re: Tax allowance for taxi plates

wannabeeahack wrote:
Whatever is on the invoice is a business cost and tax deductable, pay by cheque to create a paper trail and get 22% tax relief

(though capital items tax relief is over 4 years?)


IF you get charged VAT, and the VAT number checks out, consider going VAT registered to reclaim the VAT element


The seller can only charge VAT on the items if he PAID VAT on them I think


I have another plan if you PM me...
If you're VAT registered you have to charge VAT at the appropriate rate on everything you sell, regardless of whether or not you paid VAT on the purchase price.

Author:  grandad [ Fri Jul 18, 2014 9:21 am ]
Post subject:  Re: Tax allowance for taxi plates

roythebus wrote:
If you're VAT registered you have to charge VAT at the appropriate rate on everything you sell, regardless of whether or not you paid VAT on the purchase price.

Does that apply to second hand cars?

Author:  wannabeeahack [ Fri Jul 18, 2014 7:34 pm ]
Post subject:  Re: Tax allowance for taxi plates

grandad wrote:
roythebus wrote:
If you're VAT registered you have to charge VAT at the appropriate rate on everything you sell, regardless of whether or not you paid VAT on the purchase price.

Does that apply to second hand cars?


Ive been at BCA fleet sales and many are vat rated and that can be claimed back by those registered

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