Self Employed Taxi Drivers – How To Manage Your Personal Finance

Becoming self-employed is a very appealing concept, as you get to choose your own hours, your own rates and in a nut shell – be your own boss!

If you decide to cut the strings and go it alone, it’s worth considering that managing your own finances can prove very tough. Alongside this, you also have to take ownership of your tax and organize your own insurance.

Here at Insure Taxi, we recognize that it can be a big challenge juggling these things, therefore we have put together a list of top tips to help you manage your money.

Seek professional assistance

An accountant can help you get your finances in order and advise you on how much tax your are paying, ensuring that you pay the correct amount and do not end up owing money. If you decide to hire an accountant fully, they can manage all of your finances for you so you don’t have to worry about a thing!

Keep track of everything

Having an efficient method in place to keep your finances in check is crucial, as without one it can be easy to lose track of what money you have earned and also what tips you have earned. Tips are taxed differently to your income. As they are classed as a gift, therefore they are not counted when calculating your national insurance. Keep hold of your receipts and log book, as you are able to prove what you have earned and ensure that you do not end up owing the tax man.

Make sure you have the right coverage

Taxi insurance is typically more expensive than personal insurance, however it is important that you have the right coverage in place. Taxi insurance is very different from standard vehicle insurance. As a taxi driver, you need to ensure you have the right coverage as standard insurance does not cover you in the event of an accident whereby your passengers are injured. There are lots of types of coverage so it is important to approach a reputable taxi insurance company which has lots of experience.

Insure Taxi are a specialist broker who can help you find the most suitable coverage with a competitive premium. For more information call 0333 202 3144.