Taxi Driver Online

How does VAT affect fares charged.
Is it charged only if owner driver is registered for VAT (now over £64000).

Or is it based on radio circuit turnover

Or What?

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you can check out any time you like, but you can never leave.

I think anyone can now register for VAT, and TBH I'm not sure why many more, including me, don't.

I think the fares are the fares, and as councils don't allow taxi drivers to charge more than the set rate, then that should include VAT.

I think many councils say that the fare includes VAT where applicable.

Go to http://www.hmrc.gov.uk/home.htm and type in Taxi.

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IDFIMH

There are a number of VAT web pages that are a good guide read them then contact your local VAT office and ask to speak to a VAT officer. I found them very helpful. Its very important to start off correctly as you may not get a VAT inspection visit for a few years and its a bit late to find out you got it wrong from the get go. There are small business schemes that may suit you and cut paperwork or ease cash flow.

In a straightforward owner-driver scenario the driver and office's takings will be entirely separate, thus the driver is unlikely to need VAT registration, and if the office is over the threshold in fee income then it will have to be registered.

However, if the office owns all the cars then their takings will all be included as regards the VAT threshold.

Unfortunately it's often not that straightforward, so you may need to ask the VAT man or seek professional advice.

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Taxi Driver Online
www.taxi-driver.co.uk

round my way there are a couple of offices owning the cars who seem to think theyve found a way round vat ! Trouble is they may never get raided

But as stated it goes on business turnover if you are an owner driver working on a circuit it is Your turnover which counts for vat if it is under £64000 a year which is true of most owner drivers you are under the threshold the circuit must pay VAT on their income if it is over £64000 but that would not affect you unless your on a split purse arrangement in which case the vat will be liable on the total take of all the cars added together