Taxi & Minicab Accountants in London
Our Taxi & Minicab Accountants in London support private hire drivers, minicab businesses and operators with Self Assessment, vehicle expenses, bookkeeping, VAT, Making Tax Digital and company accounting.
Taxi & Minicab Accountants in London for drivers and operators.
Taxi and private hire businesses can have frequent transactions and substantial vehicle-related costs. Good records make it easier to identify income, distinguish business expenses from private spending and prepare accurate tax returns and accounts.
Private Hire Drivers
Accounting and Self Assessment for self-employed drivers receiving fares through operators, platforms or direct bookings.
Minicab Businesses
Bookkeeping, tax and business accounting for minicab and private hire businesses.
Limited Companies
Annual accounts, Corporation Tax and bookkeeping for drivers or operators trading through companies.
Vehicle Records
Organise fuel, insurance, servicing, repairs, vehicle hire and other relevant business costs.
VAT
Review VAT registration and reporting where taxable business turnover makes VAT relevant.
Making Tax Digital
Digital record keeping and MTD for Income Tax support for drivers who fall within the rules.
Vehicle costs are often one of the biggest areas in a driver’s accounts.
Self-employed drivers may be able to deduct allowable business vehicle expenditure when calculating taxable profit. HMRC lists costs such as vehicle insurance, repairs, servicing, fuel, parking, hire charges, vehicle tax and breakdown cover among potentially allowable business travel costs.
Private use is not deductible, so where an expense relates partly to business and partly to private use, the records may need to support an appropriate business proportion.
See the official HMRC guidance on self-employed vehicle and travel expenses .
Self-employed drivers need more than a year-end total of their fares.
A self-employed private hire driver normally needs records of business income and allowable expenses so that the taxable profit can be calculated for Self Assessment.
App or operator statements can be useful, but the figures still need to be understood correctly. Gross fare income, commissions, service charges, vehicle expenditure and other business expenses should not simply be mixed together without review.
Making Tax Digital for Income Tax has now started. From 6 April 2026 it applies to qualifying sole traders and landlords whose qualifying self-employment and property income is over £50,000, subject to the detailed rules and exemptions.
See our Self Assessment service and Making Tax Digital service .
Keep the accounting system practical as the business grows.
The accounting needs of a single self-employed driver can be different from those of a minicab operator or limited company. As transactions, drivers, employees or taxable turnover increase, bookkeeping, VAT, payroll and company reporting can become more important.
Income
Reconcile fares, operator receipts and other business income.
Expenses
Organise vehicle and other relevant business costs.
Bookkeeping
Maintain digital records rather than rebuilding the year from bank statements.
VAT
Monitor taxable turnover and review VAT where registration becomes relevant.
Tax
Prepare the appropriate Self Assessment or company accounting work.
Common tax questions from taxi and private hire drivers.
Key points around vehicle expenses, mileage, Self Assessment, VAT and digital tax records.
01 What expenses can a self-employed private hire driver claim?
Depending on the circumstances and accounting method, allowable business costs can include items such as vehicle insurance, fuel, repairs, servicing, parking, vehicle hire and breakdown cover. Private expenditure is not deductible, and the exact treatment should be based on the driver’s records and circumstances.
02 What is the self-employed mileage rate for 2026/27?
For eligible self-employed cars and goods vehicles, HMRC’s simplified mileage rate from 6 April 2026 is 55p per business mile for the first 10,000 miles and 25p for each business mile above 10,000.
03 Can a black cab use HMRC simplified mileage expenses?
HMRC specifically excludes vehicles designed for commercial use from the simplified vehicle expense method and gives black cabs and hackney carriages as examples. Their vehicle costs therefore need to be considered under the appropriate alternative tax treatment.
04 Do taxi drivers need Making Tax Digital for Income Tax?
Some do. From 6 April 2026, MTD for Income Tax applies to qualifying sole traders and landlords with qualifying income over £50,000, subject to the detailed eligibility and exemption rules. Lower thresholds are being introduced in later years.
05 When should a taxi or minicab business consider VAT registration?
The current compulsory VAT-registration threshold is more than £90,000 of taxable turnover under the relevant tests. The business model and what forms part of taxable turnover should be reviewed carefully rather than relying only on money received into the bank account.
Need help with your taxi or minicab accounts?
Speak to our Taxi & Minicab Accountants in London about vehicle expenses, Self Assessment, bookkeeping, VAT, Making Tax Digital and company accounting.