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Bookkeeping sounds like something big firms do. For a taxi or private-hire driver it’s really just one thing: keeping an honest, tidy record of what came in and what went out. Do that consistently and your tax return becomes a formality instead of a fortnight of dread.
What records you need to keep
HMRC expects you to keep records of your business income and expenses. For a driver that means:
- Income — cash fares, card fares, and app earnings (Uber, Bolt, FreeNow and any local circuit). App platforms give you weekly statements; download and keep them.
- Expenses — fuel, insurance, licensing, vehicle finance or purchase, repairs, cleaning, tyres, MOT, radio/circuit fees and app commission.
- Mileage — business miles driven, kept as you go, not guessed at year-end.
Separate your money
The single best habit you can adopt: use a dedicated bank account for the business. It doesn’t have to be a business account — a second personal current account is enough to start. When fares land in one place and expenses leave from it, your bookkeeping is 80% done automatically.
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Get a Free Compliance CheckHandling cash fares honestly
Cash is still part of the trade, and it’s the area HMRC scrutinises most. Record cash fares daily — a running note on your phone is fine — and bank the cash regularly so it shows in your account. Under-declaring cash income is the fastest way to turn a routine year into an enquiry.
Weekly beats yearly
Once Making Tax Digital for Income Tax applies to you, you’ll be sending HMRC a summary every quarter, so a big annual catch-up won’t be an option anyway. Build the habit now:
- Photograph receipts the moment you get them.
- Download app statements every week.
- Note your business mileage the same day.
- Reconcile against your bank once a week.
When to bring in an accountant
Plenty of drivers do their own day-to-day recording and hand a clean set of figures to an accountant to file. That’s often the cheapest, safest split: you keep it tidy, we make sure you claim everything, apply the rules correctly and file on time.
Get taxi-driver accounts sorted — before MTD hits
Tax Digital helps taxi and private-hire drivers across Norwich, Norfolk and the wider UK keep clean digital records, claim every allowable expense and stay ready for Making Tax Digital for Income Tax. Fixed monthly pricing, no jargon, real people.
Talk to us about taxi-driver accounting or see our accounting for taxi drivers page.
This article is general information, not personal tax advice. Figures reflect the 2025/26 tax year and can change — check your own position with us or HMRC before acting.
