Nowadays it’s not uncommon to see many people go it alone and earn their living through self-employment. Hugely beneficial in some ways as you are only ever looking out for yourself when making business decisions, but sometimes a hint of advice from a third party may offer an insight you hadn’t previously considered and can set you on a steadier track without changing the whole dynamics of the business.
For self-employed taxi drivers this is no different. We understand that managing your finances alongside your taxi insurance cover can prove extremely difficult and this can often lead to wrong payments and driving without the required insurance.
Protect against negligence claims
This is all the more important for self-employed taxi drivers as a single negligence claim by a passenger or company could cost you in excess of thousands of pounds in compensation and run your business into the ground.
Public liability insurance is essential to protect you against these claims which can include damage to a property and third party injury even with passengers who have just left the vehicle. You’re running a high risk without public liability cover.
Avoid a minute off the road
Similarly, breakdown cover for self-employed taxi drivers is another important insurance policy as a vehicle breakdown could potentially mean days without work and income while the vehicle undergoes repair.
A small payment on top of this policy ensures passengers are taken to their destination in the event of a breakdown and, for any lengthy repair work, replacement vehicle policies are available so you’re back on the road as soon as possible.
Don’t suffer if you can’t work
Income protection alongside taxi insurance means that all expenses will be covered if you’re unable to work due to illness. The sum available to you is often based on a percentage of your earnings and can be tailored to a short term or long term option when you have an estimate of how long it’ll be until you’re back behind the wheel.
Separate tips and fares
Doing this means there is no confusion over your tax payments and you could save money on the tax that you do pay. Fares are considered a wage so go towards income tax and national insurance, but tips are viewed as a gift from the customer so are only accountable for income tax.
Compiling a receipt after each job helps to distinguish between fares and any tips and this will save hassle later on when totalling up your income. A clear record of all expenses, fares and tips is essential for all self-employed taxi drivers.
Help is always available
If you’re rushed off your feet and simply don’t have time to deal with all the financial matters that arise, don’t be reluctant in seeking help from an accountant. A lot of accountancy firms now offer affordable all-inclusive packages specifically for self-employed taxi drivers providing useful advice regarding your finances and ensuring you’re not overpaying or underpaying.
You can also always rely on insurance help from http://www.insuretaxi.com/ , one of the UK’s leading taxi insurance brokers, who are happy to answer any questions you have about your taxi insurance and will search online on your behalf to find a flexible taxi insurance policy that is the ideal choice for you.
