I clean my own taxi - can I claim it as a business expense?

[redsonnet]

I realise one can claim for any business related cleaning products one buys, but what about the time and labour of actually doing it yourself? I can spend up to 2 hours a week washing and valeting which, if done professionally, might amount to over £25.

I have spoken to some taxi-driver friends - some say you can but others disagree.

Thanks,
Jan

 

[David Griffiths]

No you can't claim for the cost of your own labour.

Think about it - if you put the expense in one side, you'd have to put the earnings in the other if it was permitted.

 

[redsonnet]

No you can't claim for the cost of your own labour.

Think about it - if you put the expense in one side, you'd have to put the earnings in the other if it was permitted.

Thanks.

This does seem surprising though seeing as one is expending time in doing the cleaning.

So would it be the same for car maintenance - if I do it myself (ignoring the cost of any car parts), I can't claim for my time and labour?

 

[Walkol]

Thanks.

This does seem surprising though seeing as one is expending time in doing the cleaning.

So would it be the same for car maintenance - if I do it myself (ignoring the cost of any car parts), I can't claim for my time and labour?

What would be the benefit of doing so?

 

[redsonnet]

What would be the benefit of doing so?

Sorry Walkol, not sure what you mean.

 

[David Griffiths]

This does seem surprising though seeing as one is expending time in doing the cleaning.

It's income tax, not effort tax. The amount of work that you put in to generating the income is not relevant. And no you can't claim for your labour in relation to maintenance.

 

[redsonnet]

It's income tax, not effort tax. The amount of work that you put in to generating the income is not relevant. And no you can't claim for your labour in relation to maintenance.

Thank you for your answers David.

 

[Walkol]

Sorry Walkol, not sure what you mean.

As David says, you would have to also put the income in. So there would be absolutely no benefit to putting through that expense, as it would be cancelled out by the income.

 

[redsonnet]

As David says, you would have to also put the income in. So there would be absolutely no benefit to putting through that expense, as it would be cancelled out by the income.

I really appreciate your response. Thanks.

 

[mobious]

Could you not just pay someone to do it? then you could claim them as expenses?

 

[MyAccountantOnline]

Could you not just pay someone to do it? then you could claim them as expenses?

But is it worth spending to save tax?

 

[David Griffiths]

Could you not just pay someone to do it? then you could claim them as expenses?

So he spends £15 to save £3 tax? :|

 

[Tom McClelland]

So he spends £15 to save £3 tax? :|

But he gets back the time spent too, and the net cost is £12 not £15.

For a higher-rate tax payer the trade off might be more tempting. I guess it depends how profitable the business is.

 

[mobious]

It depends on his circumstances if he could be out doing something else and making money it would be worthwhile, saving small amount of tax, reducing wasted downtime/own time and effort and could potentially use his time differently.

 

[MyAccountantOnline]

It depends on his circumstances if he could be out doing something else and making money it would be worthwhile, saving small amount of tax, reducing wasted downtime/own time and effort and could potentially use his time differently.

It could be but the OP is a taxi driver so is, I suspect, cleaning the taxi when he's not working.

 

[kelvin1950]

But he gets back the time spent too, and the net cost is £12 not £15.

For a higher-rate tax payer the trade off might be more tempting. I guess it depends how profitable the business is.

How does he get it back? He can't drive the taxi, it's being valeted!

 

[Tom McClelland]

How does he get it back? He can't drive the taxi, it's being valeted!

Do you regard leisure time as of zero value?

I don't. If he isn't cleaning the taxi himself he can be watching the Rugby, walking the dog, going shopping, or just lying in the sun on the odd lucky day. The cost of that free time is marginally subsidised by the tax on the expense; indeed to almost half for a higher-rate taxpayer.

 

[kelvin1950]

Do you regard leisure time as of zero value?

I don't. If he isn't cleaning the taxi himself he can be watching the Rugby, walking the dog, going shopping, or just lying in the sun on the odd lucky day. The cost of that free time is marginally subsidised by the tax on the expense; indeed to almost half for a higher-rate taxpayer.

As I often work 7 days a week then I have a reasonable idea of the value of leisure time. I do, however, get the impression that the OP views any downtime as a loss, which is why he asked the question.

Now, if you could just explain to me how I can make a net financial gain from watching the rugby...............

 

[stender]

Can he not claim for the cost of the cleaning materials? brushes/shammy/sponge/ wax etc? probably adds up over a year?

 

[Walkol]

Can he not claim for the cost of the cleaning materials? brushes/shammy/sponge/ wax etc? probably adds up over a year?

Yes he can.

 

[Tom McClelland]

I do, however, get the impression that the OP views any downtime as a loss, which is why he asked the question.

I don't see how you derived that from anything he said. Clearly time spent cleaning a taxi is work, not downtime in any case. Arguably he could drive during that time and pay someone else to valet the taxi when it isn't in use, unless he is driving it 168 hours/week. In which case the money earned from extra driving might exceed the cost of the external cleaner.

And with that feel free to get the last word. I think this butterfly has been crushed enough.

 

[wsi666]

How about his son/daughter, wife/mistress or parents/grandparents did the cleaning and maintenance for him?

 

[MyAccountantOnline]

How about his son/daughter, wife/mistress or parents/grandparents did the cleaning and maintenance for him?

They could

 

[BustersDogs]

Thanks for that last one, I sometimes get my brother to wash my van for me when he's bored, I'll start putting that on the books!

 

[David Griffiths]

Thanks for that last one, I sometimes get my brother to wash my van for me when he's bored, I'll start putting that on the books!

But it's taxable income in his hands. We don't know anything about your brother, but if you pay him it's either got to be as wages, which could be subject to PAYE if he has another job, or on the basis that he's self employed which would mean him filling in his own tax return, for presumably not a lot.

If he's still in school and has no other income, then the PAYE won't be an issue, but it might not be as simply as "putting it on your books"