This is general information, not tax or legal advice. Check GOV.UK or ask an accountant about your own situation.
Whether you drive your own cab or run a small fleet, your tax bill depends on records of every fare and every cost. Most taxi businesses are sole traders or small companies.
Record all income
- Cash, card and account fares all count as income.
- Record daily or weekly takings, and reconcile them to the bank.
- Keep a trip log or app statements to support the totals.
Costs to track
- Fuel or charging, insurance, licensing and plate fees.
- Repairs, servicing, tyres and cleaning.
- Radio, app and booking fees.
- Vehicle purchase or finance. Record the vehicle as a fixed asset. See the fixed asset register.
Mileage and private use
If you use the vehicle privately too, only the business share is allowable. See business mileage and allowable expenses.
VAT
If your turnover reaches the VAT threshold you must register. See VAT registration.
Tax
Sole traders file Self Assessment. From April 2027, Making Tax Digital for Income Tax will apply above an income threshold. See the guide.
How AvrioBooks fits
Record fares with invoices or journals, code costs to separate accounts, attach receipts and reconcile imported bank statements. See AvrioBooks for sole traders.
What AvrioBooks does not do: it is accounting software, not a payroll, time-tracking or job-scheduling system, and it has no automatic bank feeds (it imports CSV, OFX, QFX and QIF statements). Use specialist tools for those jobs and bring the figures into your books.
Frequently asked questions
How should I record cash fares?
Record takings regularly, keep a trip log or statements to support them and reconcile to your bank deposits.
Can I claim all vehicle costs?
Only the business share of costs is allowable if you also use the vehicle privately.
Does AvrioBooks calculate my tax?
No. It provides the records and reports. Your return or your accountant works out the tax.
Keep reading
Accounting software for freight forwarding companies: what to look for
Forwarders handle other people's money and many currencies. Here is what your accounting software should do.
2 November 2026 · 6 min read
Accounting software for moving companies: quotes, deposits and fleet costs
Removals work is seasonal, deposit-heavy and vehicle-heavy. Here is how to keep the books in order.
2 November 2026 · 5 min read
Accounting software for staffing companies: invoicing, VAT and cash flow
Agencies pay workers weekly and wait for clients. Here is how to keep your books and cash flow healthy.
2 November 2026 · 6 min read