HOW EXACTLY TO Produce Taxi Driver Accounts Plus Tax Returns In Less Than 2 Hours

May 31, 2023

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

Taxi receipts are entered on some excel worksheets within the taxi income work book preset with each 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 that have preset columns with appropriate headings for taxi drivers to record office and rental costs, fuel bills, other vehicle costs and licence fees. The total of each expense is entered on each row and an individual letter used to then analyse the taxi expense to the column required. As with the taxi income sheet the columns are then automatically added with a check up on data entry accuracy before being used in the taxi driver accounts sheet.

Cash and bank spreadsheets aren’t provided as not required by taxi drivers as taxi drivers need not produce a balance sheet.

As well as entering purchases on the taxi expense sheet the only other entries required from the taxi driver to make a group of taxi driver accounts is to also enter vehicle and any 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.

A distinctive feature is that both mileages covered and vehicle running costs can be entered. The tax rules in the united kingdom state that drivers cannot claim both mileage allowances and vehicle running costs. It must be one or the other and only by the end of the financial year when it becomes clear that 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 best 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 can be an excel spreadsheet made with exactly 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 cab smart taxi accounts software. No entries are needed leaving the taxi driver and then click print to create the self assessment tax return.

Finally having calculated the web taxable profit for the entire year the accounting package also has a tax calculator that calculates how much 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 to 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 in that they move items from one place to another in a similar way where taxi drivers move folks from one location to some other. And because of the similarity running a business activity then this taxi accounting package would be equally ideal for couriers and van drivers.

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