HOW EXACTLY TO Produce Taxi Driver Accounts Plus Tax Returns IN UNDER 2 Hours

August 11, 2023

Since nearly all taxi drivers, but certainly not all, have little accounting or bookkeeping knowledge the low the amount of expertise required the more suitable such an accounts package will be. Data entry basically consists of just 3 records, being an excel spreadsheet for taxi receipts; another for taxi expenses plus a further worksheet in which assets like a vehicle can be recorded.

Taxi receipts are entered on a series of excel worksheets within the taxi income work book preset with every day of the financial year. Weekly and monthly totals are added and transferred through the linking system from the taxi bookkeeping sheets to the taxi financial accounts sheet.

Taxi expenses are listed on a series of twelve monthly spreadsheets which have preset columns with appropriate headings for taxi drivers to record office and rental costs, fuel bills, other vehicle costs and licence fees. The full total of each expense is entered on each row and an individual letter used to then analyse the taxi expense to the column required. Much like the taxi income sheet the columns are then automatically added which includes a check on data entry accuracy before being transferred to the taxi driver accounts sheet.

Cash and bank spreadsheets are not provided as not necessary by taxi drivers as taxi drivers do not need to create a balance sheet.

As well as entering purchases on the taxi expense sheet the only real other entries required from the taxi driver to produce a set of taxi driver accounts would be to also enter vehicle and any other assets purchased on the fixed asset spreadsheet. The fixed asset spreadsheet having already been preset with both depreciation rates and the capital allowances that taxi drivers can claim. The taxi accounts software is then complete.

The financial accounts file contains formulae to make a monthly profit and loss account that includes the taxi capital allowances from the fixed asset schedule.

Taxis fife is that both mileages covered and vehicle running costs could be entered. The tax rules in the UK declare that drivers cannot claim both mileage allowances and vehicle running costs. It must be one or another and only by the end of the financial year when it becomes clear which is probably the most tax efficient.

This taxi accounts package compares both the mileage cost and the automobile running cost and automatically selects probably the most expensive. This ensures the highest costs are selected into the calculation of the web taxable profits and highest cost equals lowest goverment tax bill.

Also in the taxi accounts file is an excel spreadsheet designed with the same layout, colour codes and box numbers because the inland revenue self assessment tax return. The taxi self assessment tax return is completed automatically by the cabsmart taxi accounts software. No entries are required leaving the taxi driver only to click print to produce the self assessment tax return.

Finally having calculated the net taxable profit for the entire year the accounting package also offers a tax calculator that calculates the volume of income tax and national insurance to be paid.

The taxi driver accounts package has been tested often and the annual receipts and expenses for a full year take approximately 2-3 3 hours to enter, and also have been completed in less than 2 hours. The finish product is a full group of taxi driver accounts including the self assessment tax return.

Both couriers and van drivers have similar businesses to taxi drivers for the reason that they move items in one place to another similarly where taxi drivers move people from one location to another. And due to the similarity running a business activity then this taxi accounting package would be equally suitable for couriers and van drivers.

Leave a Reply

Your email address will not be published. Required fields are marked *