Pre-booked work through operators, circuit fees, vehicle costs and licensing. Here's how Making Tax Digital for Income Tax applies to private hire drivers, and when it starts for you.
MTD for Income Tax is measured on gross income before costs. Once operator fees and vehicle costs are counted, your gross fares are well above your take-home.
Your operator takes a slice, but the full fare is still your gross income and the fee is a cost you claim. Recording both keeps your quarterly updates accurate and your profit realistic.
Your annual Self Assessment return is replaced by four short quarterly updates and a year-end final declaration, all through recognised software.
Record the full fare as income and the operator fee as an expense, so your profit is right each quarter.
The fee your operator takes is a deductible cost. Record it against the fare so your margin is clear.
Flat-rate mileage or actual costs plus capital allowances. Choose one and keep the records to support it.
Private hire licence, DBS and any medical are deductible. Keep them recorded so nothing is missed.
Any direct or cash bookings are income too. Add them so your gross is complete for the quarter.
You're between jobs, not at a desk. Clear Books lets you keep records from your phone and gives HMRC exactly what MTD requires.
Log fares, operator fees and vehicle costs as you go, and send your first quarterly update in minutes.
