Taxi Driver Online

Thanks, i will give it another go .They dont make it easy.

I have just been speaking to a couple of local owner/drivers and they have been awarded grants of £500 and £750. We also received a grant but because we have larger overheads and more vehicles we got a bit more than them.

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Grandad,

If you're looking at it in terms of cash outgoings, then you're correct, but it's not as straightforward as that.

Basically a business has fixed costs and variable costs. In the trade, fixed costs are basically stuff that you have to pay out regardless of how much work you do, like insurance and licence fees. Even if you don't turn a wheel for a month, you're paying for that stuff.

Variable costs depend wholly on how much work you do, like fuel and tyres. Obviously you're not going to get a grant for fuel if your car is doing nothing.

In a proper set of accounts you would spread the fixed costs over the relevant period - pro rata, as Grandad puts it.

So as regards fixed cost, it shouldn't really matter when you pay them out, but it all may depend what approach your council takes. As with lots of stuff like this, there are various ways of looking at things, and no right or wrong answers as such