Taxi drivers to lose tax relief on fuel in the Autumn Statement 2016
Rumour has it that private taxi drivers will no longer be able to offset fuel costs as an expense against their income, thus preventing them from getting unfair tax relief on their fuel.
The Treasury initiative is designed to “level the playing field” with private motorists who have to pay for fuel out of their taxed income.
The drivers and businesses affected have said that fares will increase but one Councillor called them snivelling parasites, preying on tourists and old folk who do not have a vehicle of their own. He said “Taxi drivers are not really a business anyway, they just drive cars, why should they get tax relief on their fuel when other car owners don’t?”
A Geography graduate who first suggested the policy to The Green Party said “getting taxi’s off the road will be good for the environment and traffic congestion whilst making it far safer for people to bike into work.”
J Corbynski, regarded as a complete pillock by most of his left wing colleagues, said “I see this as a perfect opportunity to raise tax from wealthy taxi drivers so that we can pump more money into improving public transport”.
A member of The Landlords Union drew similarities between the policy and the changes George Osborne made in his 2015 Summer Budget to finance costs, which will no longer be treated as a legitimate business expense for private landlords . He said “did anybody really expect the government to stop at taxing only private landlords in this underhanded way?”
Government officials have denied all allegations that they are effectively sacrificing small businesses for the sake of attracting further investment into corporate operators who just so happen to make large donations to their party at election time. They went on to say that grant funding recently announced for corporate operators are a complete coincidence and exist only to improve the transport problems facing the UK population due to its continued growth, particularly in the capital.
A major accountancy body has pointed out that corporate taxi firms will not be affected and that they expect their members to be dealing with several enquiries regarding incorporation. They said “this is nothing like incorporation for landlords as taxi drivers will not be affected by increased Stamp Duty rates and capital gains tax is unlikely to be an issue for them on the basis that their core assets (vehicles) tend to depreciate whereas residential properties owned by landlords generally increase in value over the longer term.”
Media commentators have suggested that taxi fares will rise affecting old folk in rural locations. The Governments response was that they doubted that very much on the basis that only 1 in 5 taxi businesses would be affected. They were unable to produce figures to substantiate that claim.
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Member Since September 2015 - Comments: 1013
7:41 AM, 11th November 2016, About 9 years ago
Excellent!!
The same may be happening to car/van hire businesses who will not be able to deduct interest/finance charges on their fleet of vehicles.
And bakers will not be able to deduct the cost of flour in order “to level the playing field” with people baking at home. 🙂
Member Since August 2015 - Comments: 287
8:30 AM, 11th November 2016, About 9 years ago
Beware of putting ideas into their heads!
Member Since January 2011 - Comments: 12193 - Articles: 1396
8:35 AM, 11th November 2016, About 9 years ago
Reply to the comment left by “Jon Pipllman” at “11/11/2016 – 08:30“:
Viva le revolution!
.
Member Since October 2013 - Comments: 1020 - Articles: 47
8:46 AM, 11th November 2016, About 9 years ago
Reply to the comment left by “Barry Fitzpatrick” at “11/11/2016 – 07:41“:
Hi Barry
I expect furnished holiday campervans will be exempt, as they are a luxury not a necessity.
Member Since September 2016 - Comments: 2533 - Articles: 73
8:46 AM, 11th November 2016, About 9 years ago
Reply to the comment left by “Barry Fitzpatrick” at “11/11/2016 – 07:41“:
Yes, Barry, it’s very unfair that bakers can offset the costs of their flour when producing their baked goods. I bake a lot of bread and cakes and I have to pay the full whack. Why should I get no tax relief when I make my Victoria sponges and Russian potato bread but wealthier bakers do get to put this as a cost in their tax return, especially as they produce inferior goods to mine? I think flour, but also margarine, sugar, eggs, cocoa powder, chocolate and jam should be re-defined as part of their profit and they should be taxed on them as I am (in effect – well I have to pay for them out of my taxed income).
And if anyone who says this unusual idea is absurd or idiotic then they don’t understand what a ‘level playing field’ is.
Member Since September 2015 - Comments: 1013
9:06 AM, 11th November 2016, About 9 years ago
It would be a shame if this was accidentally leaked to the Licensed Taxi Drivers Association, wouldn’t it?
After all there’s no smoke without fire 🙂
Member Since September 2015 - Comments: 1013
9:15 AM, 11th November 2016, About 9 years ago
Reply to the comment left by “Jon Pipllman” at “11/11/2016 – 08:30“:
The businesses that unfairly have legitimate business expenses disallowed; the louder will the demands for these unfair taxes to be repealed.
Member Since September 2016 - Comments: 2533 - Articles: 73
9:16 AM, 11th November 2016, About 9 years ago
Reply to the comment left by “Barry Fitzpatrick” at “11/11/2016 – 09:06“:
It would be good if you could let them know, Barry. Hopefully they will be given 4 years for this to gradually be introduced, as has been done for private landlords. That will give them time to adjust their businesses to being taxed on the main part of their turnover – so it won’t kill them overnight – they’ll just be gradually strangled to death. That’s a lot better.
Member Since February 2016 - Comments: 1056
9:41 AM, 11th November 2016, About 9 years ago
Yes, yes, mildly amusing and makes your point, Mark, but what is this irritating fixation with geography graduates as though they are somehow unqualified to comment? Perhaps you do not realise that many, if not most, academic researchers working in this field are geographers who have come to it via the Human Geography/Geography of the Built Environment/Housing Studies speciallisms route.
Member Since July 2013 - Comments: 1996 - Articles: 21
10:37 AM, 11th November 2016, About 9 years ago
Brilliant Mark, LMAO
You should have published it on April 1st. Perhaps you can get the Telegraph to do so!