self employed taxation

nikkiplc2001

Hi guys, any help would be appricated, just trying to work out what i can claim in tax, or will be charged in tax, self employed taxi driver, i know the following:

Prsi 4% €127 exception per week
Tax credits €1650
USC 2% on first €10036, 4% on the next €5980, 7% on rest
Claim tax and insurance for vehicle
Meter rent
Diesel/petrol exps

Does anyone know what else could be claimed against tax, also would i get PAYE tax credit of €1650 even though i only pay tax at the end of the year.

any help would be appricated!!

barneystinson

Provided the car is in use at least 75% of the time as a taxi, you are allowed to claim a deduction (writing down allowance) of 40% of the vehicle's cost, on a reducing balance basis.
Example: Car costs 10k, so in yr1 you claim a 4k allowance. Remaining value is 6k, so in yr2 you can claim 2,400 (6k x 40%).

And no you won't be entitled to a PAYE credit unless you are an employee.

kennyb3

From other taxi's we do returns for i'd say you ve left out at least these:

- any interest on the financing of your car
- repairs and maintenance (including car washes, any NCT)
- taxi licence
- radio rental (if you rent this too)
- any accountancy fees if you're having a professional look at it

Also just to note you have to add back a percentage of most expenses for the personal element.

eg. add back 5-10% of interest on finance for the personal use of the taxi.

nikkiplc2001

Thanks for the replies, the car is soley used for taxi purpose, does that mean that I can claim the full insurance and car loan against tax or is there only a certain percentage, can you claim for accountant doing the tax returns for you. Just trying to get an idea of how much tax I will have to fork out, thanks!!

chook

Prsi 4% €127 exception per week

That sadly only applies to PAYE workers, not self-employed.:mad:

Minimum contribution is 253 Euro/yr; Class S (Self-Employed) PRSI rate is 4% (from 2011) on all income from self-employment.

http://www.welfare.ie/EN/Publications/SW14/SW14_11/Pages/ClassS.aspx

barneystinson

nikkiplc2001 wrote: »

Thanks for the replies, the car is soley used for taxi purpose, does that mean that I can claim the full insurance and car loan against tax or is there only a certain percentage, can you claim for accountant doing the tax returns for you. Just trying to get an idea of how much tax I will have to fork out, thanks!!

As long as you have another car registered to you, or that you're insured on and can show you have access to, then I don't see why you can't claim all of the costs associated with the vehicle.

But IF you don't have a separate car for when you're not working, don't play silly buggers; nothing annoys an auditor more than when someone treats them like they're stupid... (and don't get me wrong, I know there's plenty who are stupid, just like in any job, but no-one in their right mind would believe a taxi driver who doesn't have any other car, NEVER uses his taxi for personal use!)