If you are running your own taxi service in the UK then you will no doubt be responsible for making sure that you declare your taxable income to HM Revenue and Customs (HMRC). Obviously, you will wish to make sure that you are paying the correct amount of income tax so you will need to know what business expenses you can claim to reduce your income tax liability. In this respect, we hope that you find the following list of expenses that you may be able to claim to lower your tax bill useful but do bear in mind that it is by no means an exhaustive list.

Servicing and repairs – you will need to make sure that your taxi is in good running order so you may be able to claim expenditure like servicing, MOT, repairs and replacement tyres.

Cleaning costs – you will want to keep your taxi clean inside and out so you may be able to claim for having your taxi valeted on a regular basis.

Taxi Insurance – as you will be aware, it is a legal requirement that you insure your taxi and you may be able to claim the annual premium as a business expense.

Interest on loans – if you arranged a loan to purchase your taxi you may be able to claim the interest payments on the loan as a business expense.

Vehicle Leasing – if you lease your taxi then you may be able to offset the leasing payments against income tax.

Fuel – a significant expenditure for a taxi driver is the cost of the petrol or diesel used for business purposes but you will be pleased to read that you may be able to claim this cost to lower your income tax bill.

Registration fees and license – as these are a requirement to be able to operate as a taxi driver you may be able to offset the cost against your income tax.

Parking charges – you will no doubt incur car park charges in particular if you do airport transfers so you may be able to claim these as a business expense.

Radio hire – if you hire a radio to communicate with your office then you may be able to claim this as a business expense.

Office expenditure – you may be able to claim expenses incurred by your office such as the cost of a phone. If you operate from home then you may be able to claim a reasonable amount for rent.

Advertising – if you place an advertisement in your local paper relating to your taxi service then you may be able to offset the cost against your tax bill.

Breakdown cover – if you are a member of the likes of the AA, RAC or Green Flag then you may be able to claim your membership fee as a business expense.

Accountancy fee – if you employ an accountant to do your books then you may be able to offset his or her fee against income tax.

We hope that the above list that we said earlier is not exhaustive is of some benefit to your taxi business. You may wish to seek professional advice in respect of the above.