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HM REVENUE & CUSTOMS SELF EMPLOYED TAX RETURN

The following tables are the excel spreadsheet copies of the HM Revenue & Customs self employed  tax return that is integrated within the taxi drivers accounts systems provided by DIY Accounting to make it the best accounting software in the UK for the self employed taxi, cab, private hire driver and van driver.

Why is this the best accounting software for the self employed taxi driver? Compare accounting software? In that accounting software comparison how many produce small business tax software that will produce your HMCE, self employed tax return. The answer will be not many if any at all which is why we believe this is the best accounting software for the self employed. 

No entries are required to complete this inland revenue self employed tax return which is completely automatically as part of the small business tax software within this, the best accounting software. working as your own taxi accountant

The Taxi driver taxi accountant

When the self employed accounts have been completed the inland revenue self employed short tax return is ready to be printed ready for you to go online and enter the accounts direct to the inland revenue website  who will then automatically calculate your tax liabilities

Inland revenue SELF EMPLOYED  tax return section 1

This section of the short tax return contains brief details of the taxi driver name and unique taxpayer reference which is completed manually by entering the details

Inland revenue SELF EMPLOYED  tax return section 2

The short tax return is completed for the financial year 2007-08 if sales turnover was under the vat threshold limit of £64,000. If turnover exceed the vat threshold then the taxi driver would need to be vat registered and also complete the full tax return. In those circumstances the self employed package would be a better option as the self employed accounts completes either the short tax return or the full tax return as appropriate.

The taxi accounting package  works as the taxi accountant by automatically completing the tax return. If the taxi receipts were under £30,000 then the details required in the short tax return are reduced to the sales turnover and total expenses.  If taxi receipts exceed the £30,000 further expenses analysis is required as shown in the section below.

The taxi accounts automatically changes to complete the full analysis when required.  No special action is required by the taxi driver as the taxi accounting automatically collects the correct figures from the taxi accounts spreadsheets

Specific to a taxi driver the vehicle running costs are included in the cost of sales section as vehicle costs are the main items purchased which are effectively resold to taxi passengers and the taxi driver accounts should be arranged in this format.. 

Inland revenue SELF EMPLOYED  tax return section 3

The capital allowances section of the self employed tax return form is the most difficult for taxi drivers who are not conversant with the tax system. Completing the short tax return requires the cab driver to understand capital allowances that can be claimed against taxis and mini cabs.

For taxis the first year allowance was 50%, 2007-08 and in subsequent years the writing down allowance is 25% of the balance.  For tax year 2008-09 the annual investment allowance of 100% can be claimed if the taxi vehicle is a commercial vehicle such as a hackney carriage. Private hire drivers, cab and mini cab drivers would normally use a private vehicle and the writing down allowance available for non commercial vehicles is 20% restricted to a maximum allowance of £3,000

Special rules apply to vehicles and of particular interest when preparing the taxi driver accounts. These special rules certainly affect taxi drivers many of whom will find they are not eligible to claim the 50% first year allowance on their taxi. The first year allowance applies to commercial vehicles such as hackney cabs but not to cars used for taxi business.

Section 3 is the tax accountant nature of the taxi drivers package excels automatically completing the capital allowances from the fixed asset schedule which has all the capital allowance rates embedded.

DIY Accounting  "Taxi accounting package for taxi, private hire, cab and mini cab drivers accounts works as taxi accountant by completing the taxi short tax return"

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Last modified: 03/17/09