![]() Of course, as we’ll see later, claiming your relevant expenses can reduce the amount of tax you need to pay.Īs a sole trader, you’ll also need to pay National Insurance (a special tax that pays for certain benefits and the State Pension). (The same applies if you’re a partner in a business partnership, but this is a very uncommon structure for taxi drivers).Īs you probably know, the amount of tax you’ll pay is determined by your annual profit, with different bands for different levels of income (see the table below). ![]() What this means in terms of tax is, as long as their annual income exceeds £1,000 (the tax-free trading allowance), they must complete a self-assessment tax return for the relevant tax year and pay the appropriate tax and National Insurance contributions. The vast majority of taxi drivers work as self-employed ‘sole traders’. Taxi driver income tax (including National Insurance) There are two main taxes you’ll need to worry about as a taxi driver – income tax/National Insurance, and road tax. This means you’re in charge of everything, including paying the right amount of tax. If you’re working as a taxi driver in the UK, then you’ll almost certainly be running your own self-employed ‘ sole trader’ business. ![]() How much tax does a taxi driver pay in the UK? ![]()
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