What is a Tax Clearance Cert?
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.
What are a Taxi Driver’s Tax Responsibilities?
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.
What do I need to know as a new Taxi Driver?
Are you new to the industry and wondering what your accounting and tax responsibilities are each year?
Do you know how or when to file a tax return?
Do you know what preliminary tax is?
Do you know how to apply for a tax clearance cert is?
Do you even know what books and records to keep and do you understand what a Revenue Audit is?
If you are unfamiliar to any of the above, try not to worry. You aim should simply be to concentrate on growing your taxi business and earning as much money as you possibly can and leave the burden of any administration work to us.
We specialise in taxi driver tax returns.
We have hundreds of very satisfied drivers on our books. We only charge €179 a year, that is less than €3.50 a week. We don’t even have to meet you, everything can be done online and it takes less than 10 minutes to complete, what we call, “An Online Consultation” In a later post we will explain this process.
All that you need to worry about is keeping track of your income and all business expenses. In a later post, we will explain all allowable expenses and some that are not allowed, even if a friend says they are.
So welcome to the industry. It is a great time to be taking this step into being a Taxi Driver as things are picking up so well at the moment.