Taxi Driver Online

Hey everyone first post

I was thinking on going self employed and buying my own hackney cab in glasgow, but i'm not sure how tax works, i will give you a breakdown of my sums over 4 years. I've just got a basic question how tax works?

Outlays over a 4 year period

To buy brand new cab with plate 60k (Peugeot E7 xs), fuel over 4 years 30k ( 5 or 6 shifts a week nightshift), radio hire over 4 years 17k (4k a years TOA), trade in taxi twice over 4 years will be 12k top up x 2 is 25k, and 5k on extras and maintanence, added all up over a 4 year window is 160k

Earnings will be me 30k per year, plus hire out cab dayshift is 10k per year, so thats 40k per year times 4 is 160k

Bearing in mind i've used 60k as start up costs for cab and plate, i wont be in any profit due to my initial outlay, does this mean i am not liable for any tax or national insurance?

Also please beware that these numbers can fluctuate and this is just a rough estimate, thanks

Speak to an accountant but you will have to pay tax in some form

as above speak to an accountant (drop me a pm if you need one in Glasgow)


iirc you cant claim the purchase cost of the cab back but you can claim the yearly depreciation back. theres many many ways of working the figures to suit and you should only be paying tax if you want to.

If you are going to be laying out £160,000 over the 4 years and you are only going to earn £160,000 over the same period, what are you going to live on? Whay are you working for nothing? However don't forget that you have a personal tax allowance of £10,600 this year and whatever it will be per year afterwards so you will be able to make that much profit every year and still not pay tax. You have to register as self employed and at the moment you pay national insurance at around £3.00 per week.

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Grandad,

Thanks for the replys everyone really helpfull, i know its a bit of a gray area, but can you claim back the cost of the plate? will go and see an accountant just being my usual self and impatient hehe

not entirely sure but if not get your wife/significant other to buy the plate and rent it off them

Thanks foxtrot, i'll go and see an accountant, appreciate you're help

don't thank me yet, I could be talking cobblers.


if your looking for a decent accountant with a good knowledge of the PH/taxi trade you cant go far wrong with Johnny allan at Clydegrove in Tollcross.


knows the industry and from personal experience makes everything hassle free

Thanks again Foxtrot, yeah i've heard about him, i'll pay him a visit but responses in here have been helpful, much appreciated

I wouldn't expect you to get the plate value back over four years.

Also be interested if you got a proper receipt for the plate.

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IDFIMH

I'll go and speak to accountant, OP was just a quick generalisation. Regarding plates is it easy to find a seller in Glasgow? Ovb i'm going to do it first and see how i get on, but i also like to plan in advance.

Ideally if i'm going to stick it i would like my own cab.

Your barking mad going into cabbing ffs read up on it

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youd better lube up and pull those pants down,
you are going to get a severe shafting,
a lot of supposed plate sellers have had their plates for sale for years,only doing their nosey,promise to sell then pull out ,leaving you high and dry,to repeat the process over and over.

the two main protagonist in the plate/taxi market will tie you up with sky high payments for 5 years,you better not get sick cos if you miss 3 payments they take the taxi and plate back off you and move on to the next chump,they keep their name on the licence till every penny is paid,but in the meantime your taking all the risk,if you can buy a taxi and plate outright it will be a lot easier,but i would not encourage anyone to enter the taxi trade,long hours,low pay,[edited by admin] people with [edited by admin] attitudes who think they can treat you like a slave,and a council who dont care about you,the attitude from them if there is a complaint againt you is,"if someones took the time to complain then YOU must be guilty

but somedays it feels like the best job in the world,its just there aint enough of them

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i started out with nothing and ive still got most of it left

I'm in a fortunate situation financially just now, but seems plates could be hard to come by then? suppose the flip side of this if you did have one you wouldn't have any problems getting rid of it?

I wont be diving in, but i like to plan ahead.

If i was going to stick at it i would rather be my own man, i know that might come with more hassle but its a price i'd be willing to pay. Is there always plenty of shifts going nightshift? Can you walk into one?

I'd work days also, but don't have any commitments just now and preffer driving when its a bit quieter. I don't mind if people are knobs, at least with hackney you've got a shield and there not in you're face.

plates are not really hard to come by,its just there are a lot of tossers who will just give you the runaround,mostly just being in the right place at the right time,and of course money talks

if your looking for a shift, night shifts are easiest to get,most owners prefer to work days.
if you want to work a radio car you have to go to gtl,do the radio course,get your pin no,get your pvg disclosure,pay your drivers registration fee,then you can look at the "shifts available" book ,so its not instantaneous,takes a few weeks,other option is non radio,you need to get word out that your looking for a shift,hang abiut the main ranks and look for cabs with signs in the back window that theyre looking for a driver,

ps youll get used to the knobs very quickly,theres a lot of them about,but good luck with your venture

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i started out with nothing and ive still got most of it left