Taxi Driver Online

I am starting work on tuesday (yay) and apart from c******g myself with nerves I also have to look at the admin side of it too and could do with a little advice.

I am working for a company (PH) on a 50/50 basis using their cars, they pay fuel and I just drive. My only outgoings are the 50% and cleaning the car plus my mobile will be on the accounts too. Do tips have to be declared?

How do you know how much tax to put aside? what is the percentage? as I also need enough money to live on too

I am thinking of opening a business bank account next week, I have also been looking around at software on the web too, there is some that will work out figures and tax for you, has anyone or does anyone use such software on here? is it any good, anyone got any suggestions.

I am also going to keep a manual record of my income/expenditure too. I am wary of the self assessment form as I have never filled one in, how easy is it as I don't want to mess it up?

Any useful tips appreciated, thanks.

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Where to then guv?......eh? where's that then ???

Hi mate, the 1st thing I'd say is don't get a business account, the banks charge you for using them.

You don't need any fancy software to do your books, all you need is an A4 pad made out so you can understand it.

As for the Self assesment forms they are a breeze, if I can fill one in anyone can.

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Do not argue with an idiot. He will drag you down to his level and beat you with experience.

Believe me, don't get Mercury X2

I am working for a company (PH) on a 50/50 basis

They cannot go 50/50 they have to pay you the min wage.
The law states that if they pay the fuel your an employee

Yes, it is income gained from work.


Tax is roughly 20% of your profit.

However the tax threshold is going up to about £7,000, so you need to consider that. Plus of course your national insurance contributions, so maybe putting aside 10-15% shouldn't leave you that short when January 31st arrives.


You can do all that, all I do is fill in the on-line revenue form and they work it out for you.


By law you have to keep accurate accounts, and the self assessment form is quite simple to fill in, especially on-line.

But clearly make sure the numbers are right and checked before you input them.

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IDFIMH

No it doesn't.

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IDFIMH

Yea some do but some are free to a limit.



Thanks bud

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Where to then guv?......eh? where's that then ???

bugger


Tax is roughly 20% of your profit.

However the tax threshold is going up to about £7,000, so you need to consider that. Plus of course your national insurance contributions, so maybe putting aside 10-15% shouldn't leave you that short when January 31st arrives.


You can do all that, all I do is fill in the on-line revenue form and they work it out for you.


By law you have to keep accurate accounts, and the self assessment form is quite simple to fill in, especially on-line.

But clearly make sure the numbers are right and checked before you input them.[/quote]

Thanks sussex, very helpful, just have to get through the first day now

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Where to then guv?......eh? where's that then ???

https://esi2calculator.hmrc.gov.uk/esi/app/summary.page

Just ran his status through the revenue site he is an employee

Use this to work out if your an employee or self employed

http://www.hmrc.gov.uk/calcs/esi.htm

I have been offered to buy a company vehicle, as I don't know lots about the tax system, is this an allowable expense?? I have my tax money in the business account which would cover the purchase cost but I am not sure how this works regarding tax and expenses.

If someone can explain how this works within tax and business it would be a help.

Cheers

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Where to then guv?......eh? where's that then ???

Dont forget your National Insurance as well.........thats a Sneaky extra which if you Do not pay may cost you dear later on in life...

Why Dont you go on a wee Government or Council Basic accounts Scheme designed for first time small business's...thers a load of them on offer, Have a word with your Local Business Enterprise People.

Yes, why would you assume otherwise?

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IDFIMH