Taxis only pay €800 in tax?

Ray Palmer

An acquaintance of mine who happens to be a taxi driver recently told me that he only pays €800 a year in income tax as do all taxi drivers. Now that is a very small amount and I pay multiples of that monthly. Does anybody know if this is true?
Now I do realise that they can't write off car expenses nor fuel but it seems extraordinarily low.

uch

Not True

suicide_circus

It's amazing what you can do when you work in a majority cash industry and file your own tax returns.

Collie D

suicide_circus wrote: »

It's amazing what you can do when you work in a majority cash industry and file your own tax returns.

Sure that's probably double what the average Greek GP was paying up until recently.

uch

suicide_circus wrote: »

It's amazing what you can do when you work in a majority cash industry and file your own tax returns.

Most Taxi Drivers wouldn't know how to file a Tax Return, Union members get the union to do them, non union Drivers pay accountants

Drakares

Ray Palmer wrote: »

An acquaintance of mine who happens to be a taxi driver recently told me that he only pays €800 a year in income tax as do all taxi drivers. Now that is a very small amount and I pay multiples of that monthly. Does anybody know if this is true?
Now I do realise that they can't write off car expenses nor fuel but it seems extraordinarily low.

It's nonsense.

Source: My ould lad is a taxi driver.

SEPT 23 1989

seems about right when you deduct his expenses

Ray Palmer

uch wrote: »

Not True

So how is their tax worked out?

Freddie Dodge

Ray Palmer wrote: »

An acquaintance of mine who happens to be a taxi driver recently told me that he only pays €800 a year in income tax as do all taxi drivers. Now that is a very small amount and I pay multiples of that monthly. Does anybody know if this is true?
Now I do realise that they can't write off car expenses nor fuel but it seems extraordinarily low.

They can and do write off both car and fuel expenses.

I would say your friend refers to a scheme where the union does their tax returns for them for a small fee, necessary given that they aren't really "businesses" in that they only employ themselves. Probably better that the union do tbh as half of them are barely literate and the money revenue would spend taking them to court for non-compliance would never be recovered. No doubt the union rep claims for everything under the sun and minimises their profit as much as possible. Not surprised tbh.

Ray Palmer

Drakares wrote: »

It's nonsense.

Source: My ould lad is a taxi driver.

So this guy was lying to me and you are telling me the truth. Any other explanation? I never knew how much my dad was paid

Collie D

Freddie Dodge wrote: »

They can and do write off both car and fuel expenses.

I would say your friend refers to a scheme where the union does their tax returns for them for a small fee, necessary given that they aren't really "businesses" in that they only employ themselves. Probably better that the union do tbh as half of them are barely literate and the money revenue would spend taking them to court for non-compliance would never be recovered. No doubt the union rep claims for everything under the sun and minimises their profit as much as possible. Not surprised tbh.

No different from what every company under the sun does. Nothing wrong with deducting legitimate expenditure.

Maximus Alexander

Ray Palmer wrote: »

An acquaintance of mine who happens to be a taxi driver recently told me that he only pays €800 a year in income tax as do all taxi drivers. Now that is a very small amount and I pay multiples of that monthly. Does anybody know if this is true?
Now I do realise that they can't write off car expenses nor fuel but it seems extraordinarily low.

Level with us Ray, this is just a dressed up "I'm really wealthy" thread, isn't it?

Ray Palmer

Freddie Dodge wrote: »

They can and do write off both car and fuel expenses.

I would say your friend refers to a scheme where the union does their tax returns for them for a small fee, necessary given that they aren't really "businesses" in that they only employ themselves. Probably better that the union do tbh as half of them are barely literate and the money revenue would spend taking them to court for non-compliance would never be recovered. No doubt the union rep claims for everything under the sun and minimises their profit as much as possible. Not surprised tbh.

That was kind of what he was saying and that it always comes out at €800 no matter income or expenses

B.A._Baracus

I highly doubt it's 800 euro :pac:

But yeah, Taxi Drivers do pay a lower amount of tax than what you would expect Such is the way of running your own business.

ImDave

Ray Palmer wrote: »

So how is their tax worked out?

Self Assessment (Sole Trader) basis of tax. Very simply, taxable on your gross income less allowable expenses.

uch

Ray Palmer wrote: »

So this guy was lying to me and you are telling me the truth. Any other explanation? I never knew how much my dad was paid

I'm a Recovering Taxi Driver, the Union used to do my returns, they were more than €800 a Year

Ray Palmer

Maximus Alexander wrote: »

Level with us Ray, this is just a dressed up "I'm really wealthy" thread, isn't it?

I'm not. Even on an average wage for Dublin most people would pay twice that amount. That being a multiple

petes

Ray Palmer wrote: »

I'm not. Even on an average wage for Dublin most people would pay twice that amount. That being a multiple

An average wage paying €1600 a month in tax...not likely!

Ray Palmer

uch wrote: »

I'm a Recovering Taxi Driver, the Union used to do my returns, they were more than €800 a Year

Great explain what you can claim and if there is any other allowances taxi drivers get.

Maximus Alexander

Ray Palmer wrote: »

I'm not. Even on an average wage for Dublin most people would pay twice that amount. That being a multiple

What do you think the average wage in Dublin is?

uch

As I said, the union used to do my returns, you basically claim for every expense associated with the running of the Car

Ray Palmer

uch wrote: »

As I said, the union used to do my returns, you basically claim for every expense associated with the running of the Car

And you never read it or had any understanding of it?:eek:

Frank Lee Midere

If they weren't paying tax then why the rush to Hailo etc. Where you can't hide. Revenue here is pretty tough these days.

SEPT 23 1989

Ray Palmer wrote: »

Great explain what you can claim and if there is any other allowances taxi drivers get.

not a taxi driver but i presume

fuel
insurance
motor tax
doe/nct
repairs
meals
if new car % of monthly payment is allowed off your income tax bill

Ray Palmer

Maximus Alexander wrote: »

What do you think the average wage in Dublin is?

Around 35k-38k

Ray Palmer

SEPT 23 1989 wrote: »

not a taxi driver but i presume

fuel
insurance
motor tax
doe/nct
repairs
meals
if new car % of monthly payment is allowed off your income tax bill

Meals would not be allowed the tax man made that very clear recently

Outkast_IRE

Honestly its, not true, my father is a taxi driver and every year pays multiples of the figure you have mentioned.

Ray Palmer

Frank Lee Midere wrote: »

If they weren't paying tax then why the rush to Hailo etc. Where you can't hide. Revenue here is pretty tough these days.

The point this guy was making was they had some way of calculating tax that wasn't connected to the number of fares.

Collie D

Ray Palmer wrote: »

Around 35k-38k

And you're paying over €1600 a month in tax? You need to get an accountant

Maximus Alexander

Ray Palmer wrote: »

Around 35k-38k

You'd be about right. What do you think income tax is on, say your upper figure, 38k?

Hint, it's nowhere close to 'multiples' of €800. Unless that multiplier is 1 I suppose.

Ray Palmer

Ray Palmer wrote: »

That was kind of what he was saying and that it always comes out at €800 no matter income or expenses

His income cannot be the same every year surely? I'd be suspicious if it was. Dunno how he can say that his tax liability is €800 every year. Would have to fluctuate based on fares.

Ray Palmer

Outkast_IRE wrote: »

Honestly its, not true, my father is a taxi driver and every year pays multiples of the figure you have mentioned.

In fairness even 12 time that is very low.

Do you know how they calculate the income?

uch

Ray Palmer wrote: »

And you never read it or had any understanding of it?:eek:

TBH No, it'd be like Looking up a Badgers Hole, would have a clue

Maximus Alexander

Ray Palmer wrote: »

In fairness even 12 time that is very low.

It's not though! Twelve times that would be in line with an average salaried taxpayer!

Ray Palmer

Strawberry Milkshake wrote: »

His income cannot be the same every year surely? I'd be suspicious if it was. Dunno how he can say that his tax liability is €800 every year. Would have to fluctuate based on fares.

It's not like I am saying what he said is correct. He isn't the brightest. I am genuinely curious how he thinks it is correct. It goes against everything I know of the tax system.

So far other than saying it is not true there hasn't exactly been people saying how it works or if there are different schemes for taxi drivers

Ray Palmer

Maximus Alexander wrote: »

It's not though! Twelve times that would be in line with an average salaried taxpayer!

No it isn't it is about 25k or 10k less than the average wage

Maximus Alexander

Ray Palmer wrote: »

No it isn't it is about 25k or 10k less than the average wage

Only if you're calculating income tax completely incorrectly.

SEPT 23 1989

SEPT 23 1989 wrote: »

not a taxi driver but i presume

fuel
insurance
motor tax
doe/nct
repairs
meals
if new car % of monthly payment is allowed off your income tax bill

Clothing & Footwear
Telephone
Printing, Postage, Stationery & Advertising
Professional Fees
Cleaning
Heating & Electric (portion if work from home)
Bank Charges & Interest
Admin charges

probably more you could explain too

Ray Palmer

uch wrote: »

TBH No, it'd be like Looking up a Badgers Hole, would have a clue

That's a choice to be ignorant. You can't add, subtract and work out percentages? They teach tax in primary school

Ray Palmer

Strawberry Milkshake wrote: »

Clothing & Footwear
Telephone
Printing, Postage, Stationery & Advertising
Professional Fees
Cleaning
Heating & Electric (portion if work from home)
Bank Charges & Interest
Admin charges

probably more you could explain too

If they are allowed those allowances that is a hell of a lot more than others can claim.

Ray Palmer

Maximus Alexander wrote: »

Only if you're calculating income tax completely incorrectly.

Ok since you know it you tell me what wage that much tax works out as.

uch

Ray Palmer wrote: »

That's a choice to be ignorant. You can't add, subtract and work out percentages? They teach tax in primary school

Not when I went to it they didn't

vicwatson

IIRC the cost of their ROAD TAX is 92 euro whether they have a 1.4 or 4.5 litres engined car, it's a fuppin joke.

Maximus Alexander

Ray Palmer wrote: »

Ok since you know it you tell me what wage that much tax works out as.

Single person on 38k.

Tax paid: ~$741 pm.

Married person on 38k. (Both working)

Tax paid: ~€318 pm.

Ray Palmer

Ray Palmer wrote: »

If they are allowed those allowances that is a hell of a lot more than others can claim.

That's normal practice for businesses. If you are an employee you don't pay for stationery, insurance, telephone, heating, etc for the company you work for but in order to provide you with employment, the business has to pay these things hence, they are expenses.

jane82

Maybe he just doesnt work much ray. Maybe when he has finished paying for his big engine car that he has to get cleaned very regularly, his petrol tax and all other expenses he just doesnt have as much as youd think. Extra insurance for being a taxi. Costs to pay for 8202020 is expensive enough. New tyres and nct tests more regularly than the rest.
Its pretty much a modest wage paying less than modest tax.
You arnt much of a friend either rushing to expose his crime of epic proportions because you pay more even though you probably dont.

Maximus Alexander

Ray are you sure you're not being emergency taxed? Seriously like.

Ray Palmer

uch wrote: »

Not when I went to it they didn't

How old are you? they have been doing it in schools for over 30 years at least.

Can you not add, subtract or do percentages?

ImDave

Ray Palmer wrote: »

If they are allowed those allowances that is a hell of a lot more than others can claim.

You have to understand that a self employed person (which most taxi drivers are) is very different to a PAYE worker. A self employed person can take allowable expenses which are incurred as part of their business/trade away from gross income/revenue for the purposes of calculating their tax liability.

On the other hand, a self employed person does not get the PAYE tax credit, only the single/married person tax credit.

uch

Ray Palmer wrote: »

How old are you? they have been doing it in schools for over 30 years at least.

Can you not add, subtract or do percentages?

I finished Primary school in the 70's, I can add and subtract but little else

Santa Cruz

As participants in an often cash transaction I have no doubt that taxi drivers, being the law abiding people they are, declare all income.