In this blog, we look at the benefits of leasing a private hire vehicle. From claiming your fuel costs and vehicle insurance to claiming back cleaning costs and even office expenses. We also include some bonus content – Five of the most popular accounting apps!
So, whether you drive with ride share apps such as Uber or Bolt, are self employed or maybe you drive for a taxi company, we have some useful content and resources for everyone…
When it comes to looking for a Private Hire Vehicle, choosing the right vehicle is crucial. One of the most important decisions you will make is whether to lease or buy your vehicle. While both options have their pros and cons, there are several reasons why leasing a private hire vehicle is often more cost-effective than buying. Whether you are looking for an electric vehicle (check out our handy guide to electric cars) which may help lower costs and come in line with ULEZ, or looking to upgrade to more spacious vehicle, this blog will help you weigh up your options.
What are the Benefits of Leasing a Private Hire Vehicle?
Lower upfront costs
One of the most significant benefits of leasing a private hire vehicle is that it requires much lower upfront costs than buying. When you buy a vehicle, you typically need to make a down payment, which can be a significant expense. With leasing, however, you typically only need to pay a small initial deposit and then make monthly payments for the duration of the lease. This means you can get the vehicle you need without having to spend a lot of money upfront.
Lower monthly payments
In addition to lower upfront costs, leasing a private hire vehicle typically means lower monthly payments compared to buying. When you lease a vehicle, you only pay for the portion of the vehicle’s value that you use over the lease term. This means your monthly payments will be lower than if you were buying the same vehicle outright. Lower monthly payments can help you manage your cash flow more effectively, which is especially important for PHV drivers.
No maintenance costs
When you lease a private hire vehicle, you don’t have to worry about the costs of maintenance repairs. lease agreements include routine maintenance and servicing, which can save you a lot of money over the life of the lease. Additionally, if there are any major repairs that need to be done, the lease company is typically responsible for covering those costs.
No depreciation
One of the biggest expenses associated with owning a vehicle is depreciation. As soon as you drive a vehicle off the lot, it begins to lose value. When you lease a vehicle, however, you don’t have to worry about depreciation. The lease company takes on the risk of the vehicle losing value, which means you can avoid this significant expense.
Tax benefits for Private Hire Vehicles
Finally, leasing a private hire vehicle can offer some tax benefits. In most cases, you can deduct the entire cost of your lease payments as a business expense, which can reduce your tax liability. Additionally, because you are not purchasing a vehicle, you don’t have to worry about depreciation, which can complicate your tax situation.
As you can see, there are several reasons why leasing a private hire vehicle can be more cost-effective than buying. Lower upfront costs, lower monthly payments, no maintenance costs, no depreciation, and tax benefits are just a few of the advantages
Read on below to see what you can claim back in expenses…
What can I claim in expenses as a Private Hire Driver?
- Fuel costs – You can claim for the cost of fuel used while carrying out your business. Keep receipts for all fuel purchased.
- Private Hire insurance – You can claim the cost of your vehicle insurance policy. Make sure you keep a record of all payments.
- Vehicle maintenance and repairs – You can claim for the cost of maintaining and repairing your vehicle. This includes things like servicing, new tires, and replacement parts.
- Vehicle licence – You can claim the cost of your vehicle licence, which is required by law to operate a private hire taxi.
- Cleaning costs – You can claim the cost of cleaning your vehicle, both inside and out.
- Mobile phone – You can claim the cost of your mobile phone bill if it is used primarily for business purposes.
- Licensing fees – You can claim the cost of any fees paid for licensing, such as renewals or new licenses.
- Office expenses – You can claim for any office expenses incurred while carrying out your business, such as stationary, computer equipment, and internet access.
Links & Resources
Whether you drive on a ride-share app, work for a taxi firm or you are self employed, always check that you are compliant with UK tax laws. More information can be found in the links below.
If you need assistance on how to become self employed check here.
Use this online tool to check your tax status
For more assistance try the simplified expenses checker
It is important to keep accurate records of all your expenses, including receipts and invoices. This will make it easier for you to claim your expenses when it comes time to file your tax return. You should also consult a tax professional to ensure that you are claiming all the expenses you are entitled to and to make sure you are keeping accurate records. In this digital age, you can also use accounting apps, We have picked a selection of popular apps below:
Book Keeping Apps for private hire drivers
QuickBooks Online: for full-service functionality.
Xero: for easy-to-use features.
FreshBooks: for independent contractors.
Zoho Books: for very small and simple businesses.
SageOne: for low-price accounting software.
Why Choose Acorn Taxi Insurance?
We have served countless public and private hire taxi drivers since our inception in 1982 and can help to provide you with wide-ranging Private hire insurance. Whether you are looking for annual taxi insurance, short term taxi cover or you own a fleet, we have the taxi cover to suit your needs. Acorn Insurance also specialises in helping those who may have previous claims, driving convictions, or points on their licence.
With over 40 years as taxi cab insurers, our dedicated taxi team has long-standing relationships with a vast array of UK taxi insurance brokers. Between them, they understand what you both want and need from a private hire insurance policy.
As a specialist taxi insurance provider, we provide cover for all kinds of UK taxi drivers – from private hire insurance and minicab cover to black cab insurance. We start with the basic level of cover and allow you to build up your policy from there. This means you are only spending on what you require or what you are concerned about. So, you only pay for the cover you actually need and will not waste money on extras you may not necessarily want.
✔ 40 years of experience in the industry
✔ UK-based taxi insurers
✔ Excellent verified customer rating
✔ Unlimited mileage options
✔ 24/7 UK accident & claims helpline – ensuring we are here when you need us.
✔ Comprehensive; Third Party, Fire & Theft; or Third Party Only
✔ Glass windscreen cover
✔ Public liability insurance as standard on annual policies
✔ Competitive cover, even if you have got points on your licence
If you are a private hire or cab driver looking for reliable and flexible hire and reward taxi insurance CLICK HERE!
Please see below for the answers to our frequently asked questions on taxi insurance.
This article includes links to third party websites and apps which are included solely for information purposes. There is no implied endorsement by use of these resources. Clicking on links, visiting third party websites, or downloading apps may allow third parties to collect or share data about you which is out of our control. When you leave our website, we encourage you to read the privacy notice of every website you visit. We are not responsible for the availability, content, accuracy, completeness, or security of such resources. We will not be liable for direct or indirect damages arising out of or in connection with the use of websites or apps.