What are the allowable expenses for a Taxi Driver?
So what are the expenses that you are allowed to claim. Well anything that is 100% business related can be used to reduce your taxable profits down. These expenses are as follows:
Motor Running Expenses such as:
Fuel
Taxi Rental
Motor Insurance
Motor Tax
NCT
Car Wash & Valet
Motor Depreciation
(a proportion will be added back in your tax return for personal use)
Repairs & Servicing
Licence Renewal Fees
Parking & Tolls
Accountancy
Printer Depreciation
MyTaxi/Uber Commissions etc
Meter Expenses
Finance Interest
Telephone
(a proportion will be added back in your tax return for personal use)
No matter what anyone tells you, lunches are not allowable. If you are audited they will add these back and charge you tax, interest & impose penalties on it. Everyone has to eat. An allowance can happen if you have an overnight stay or a long trip from say Dublin to Cork.
Clothes is also not tax deductible. Are you going to go to work in the nude?? There is an allowance for branded clothing if you have to wear a shirt or jumper issued by a taxi company. Anything apart from this is not tax deductible.
Here is a great link to the Revenue that explains everything in more detail Revenue Business Expenses
So, you’ve sat your SPSV entry test and hopefully passed. Well done! Now you’re probably wondering what to do next?
If you want to operate an SPSV (small public service vehicle) which includes taxis, WAV taxis, hackneys, local area hackneys, WAV hackneys, and limousines, you must hold a valid SPSV driver and vehicle licence.
On this page you will find how to get both licences so you can hit the road as an accredited SPSV driver.
What licences do I need to become an SPSV driver?
You must have the following licences to operate as an SPSV driver in Ireland:
SPSV Driver Licence (must have passed your entry test to apply)
SPSV Vehicle Licence (only necessary for drivers who own their own vehicle)
In Ireland there are two governing bodies in charge of allocating these licences:
An Garda Síochána
An Garda Síochána are the licensing authority in charge of issuing SPSV driver licences to prospective candidates. Applications for your SPSV driver licence can be made at your local Garda station. As soon as your application has been approved by an Garda Síochána the NTA will send you out your dashboard ID.
The NTA
The NTA are responsible for administering the SPSV entry test, and for allocating your blue SPSV vehicle licence. You can apply for this licence by post as outlined below.
The NTA are also responsible for sending you out your Dashboard ID as soon as your application has been approved by an Garda Síochána.
In order for you to obtain your driver licence you must qualify with the following criteria first:
Successfully pass the SPSV entry exam
Hold a full irish (EU equivalent) licence, Class B or higher
You must supply an up-to-date TC2 tax clearance certificate to confirm that your tax affairs are up to date. For more information on how to complete this form click here.
Once all of the criteria above is satisfied, you can then apply for both Drivehttps://www.revenue.ie/en/online-services/services/manage-your-record/apply-for-tax-clearance-online-using-etc.aspxr and Vehicle licences.
SPSV Driver Licence: How to apply
To apply for your SPSV Drivers Licence (Garda White Paper) you must follow these steps.
Fill in PSV 15 Form
Get Photographs taken
Pay the relevant fee
Submit PSV 15 Form, see below the steps for submitting your form.
Important: If you fail to include all the requested information – this will result in severe delays to your licence application.
1) Pick up and fill in the PSV 15 Form
You can pick up a PSV 15 form from your local Garda Station.
2) Get your photographs taken
You need three identical photographs. These must be passport size photos (10cm x 7cm). Click here for more information on photo standards.
3) Pay the relevant fee
Depending on your licence type you must pay the relevant fee to the NTA. It is important that you only pay the fee once you have passed the SPSV entry test, as this is non-refundable once paid.
You can call this number 0761 064000 to arrange payment over the phone with a credit/debit card, find more details here.
4) Submit the PSV 15 application form
All new applicants must submit the PSV 15 form to local Garda Station, along with:
a) Your three photographs.
b) A printout of your tax clearance certificate, and your tax clearance access number provided to you by the Revenue. The Revenue have this handy guide for SPSV licence holders here.
c) A copy of your driving licence. Please note: Most PSV offices will now look for an Irish driver’s licence and insist that the address on the licence matches that on the application form and other documentation.
d) Details of any other occupation that you are active in.
e) Declaration that your health does not affect your ability to drive an SPSV, and that you are not taking any drugs or medication that would impair your ability to operate a vehicle safely.
f) Print out of your SPSV Skills Development Certificate (not needed for applications of local area hackney driver licences). This is issued to you on completion of your SPSV test.
g) A written statement that you will not drive an SPSV for more than 11 hours on any three consecutive days
h) A declaration that you have not been convicted of any of the offences specified in section 30(3) or the Schedule to the Taxi Regulation Act 2013
i) Any other documentation that is requested by An Garda Síochána.
j) The receipt of your licence fee
K) The Gardai will ask for a copy of your Driving License history in Ireland – this can obtain from the NDLS.
Remember: Only pay your fee once you have passed the entry test.
Once your application has been submitted, it is then processed by An Garda Síochána.
Important: If you fail to include all the requested information – this will result in severe delays to your licence application.
This process can take up to twelve weeks to complete. If you have any queries about your application, please direct your questions to your local Garda Station (An Garda Síochána).
Once cleared, you will receive your driver display card (Dashboard ID) and a smart card indicating that you are a certified driver in the post
You are only required to hold a valid SPSV vehicle licence if you plan and owning your own vehicle. A SPSV vehicle licence is not required if you plan on renting a taxi as this vehicle will already be licenced. At present, the National Transport Authority are only accepting applications for new vehicle licences for wheelchair accessible taxis, wheelchair accessible hackneys, local area hackneys and limousines.
To apply for your SPSV Vehicle Licence (Blue SPSV) you must complete the following steps:
All new applicants must complete the VL1 form in full.
2) Pay for your application
Credit/Debit card
You can pay for your application over the phone with a credit/debit car by calling 0761 064 000. All you have to do is pay the relevant fee applicable.
Bank Draft of Postal Order
You can organise to pay with a bank draft or Postal order, payable to National Transport Authority. Just make sure you post it out with your application form.
3) Submit and post your application
Send the completed VL1 form with any relevant payment information to:
National Transport Authority, PO Box 436, City North Business Park, Tuam Road, Galway.
Important points to remember:
Vehicle licence is valid for twelve months from date of issue
Vehicles over ten years old are licensed for max six months at a time
Before you begin the process of applying for your SPSV vehicle licence please make sure that you are familiar with the NTA requirements as shown on their website.
Simply put, it is a electronic document, issued by the Revenue Commissioners that states that all of your tax affairs are up to date. It used to be a paper document but from the 01st January 2016 it has all been computerised.
For a Taxi Driver, this would mean that all income tax returns are filed and taxes are paid up to date but also any property tax due is fully paid.
Without a tax clearance cert it is very hard to renew a licence, apply for a NCT or to SGS your car.
Also if you are looking to get a loan from a financial institution, they would require one also.
Temporary tax clearance certs are possible to get for anyone with outstanding taxes. The individual would have to come to an arrangement with Revenue for the outstanding taxes. This usually involves a large down-payment and an agreed monthly installment plan. If the individual misses one month, the Tax Clearance Cert is revoked.
As a Taxi Driver in Ireland you are a business man or woman. You are self employed and like all other people who work for themselves you have some responsibilities.
Your responsibilities are as follows:
Register with Revenue to be classed as self-employed.
Hold a valid tax clearance cert at all times.
Keep proper books and records for a period of 6 years.
File an income tax return (Form 11) each year on time.
We can register you with Revenue to be self-employed and once your tax returns are up to date we can apply for your tax clearance cert.
Keeping books and records means, for in the case of a future Revenue audit, that you always have ready for an inspector a copy of your accounts, your tax return and all the invoices that make up the expenses. You would also have to prove your income so a printer print out can help in this situation or statements from Hailo, MyTaxi, Uber or Freenow can help.
Many drivers keep a daily diary of what their income is. You don’t have to lodge the money to a bank account.
Your tax return must be filed by 31st October in the following year. For example for the period 01st January 2018 – 31st December 2018, the tax return due should be filed on or before 31st October 2019.
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