Before I begin, let me get something out of the way…
It’s not an exciting subject (for most people!) but now that you have completed The Knowledge you need to start thinking about tax. If you have never been self-employed before you might be wondering what you need to do about tax and how you register with HMRC (formerly known as Inland Revenue).
We are aware that this is one of the last things a new driver wants to spend time researching and thinking about (and rightly so!), so to help new drivers out we have written up a step-by-step guide telling you exactly what you need to do next.
Before we start please know that if anything is not clear, or if you have any other questions, you can pick up the phone and speak to one of our friendly team totally free of charge. We will be more than happy to help and can answer any questions that you might have.
You will need the following information to hand:
Firstly you need to create a Government Gateway Account. To do that follow the steps below.
You should now be issued with a Government Gateway User ID on a page (see image below).
Now that you have a Government Gateway Account you can register for Self Assessment (this basically means you are telling the Government that you are self employed).
Once you have submitted the form you are done (for today). You now need to wait for HMRC to send you a letter containing your 10 digit Unique Taxpayer Reference (UTR).
Once you have received your UTR please give us a call on 0207 837 8535 and we will explain what to do next.
As we mentioned above, if you have any problems or if anything isn’t clear please feel free to give us a call and one of the team will be glad to help you out.
Joseph Cox is an ACCA Chartered Accountant whose dad is a London Taxi Driver. He has been working with Cab Drivers for a number of years. If you have any questions about this blog post please give the office a call and he
If you are Self Employed you may be able to claim taxable grants up to 80% of your normal monthly profit, capped at £2,500 per month.
Each year every Taxi Driver needs to calculate their taxes and submit a Tax Return to HMRC by 31st January.