Taxi Driver Accountant UK in Leeds: Year-End Checklist for Local Drivers

A taxi driver accountant uk drivers can trust should help you close the year on 5 April with every record in place. This checklist is for Leeds hackney carriage and private hire drivers who want a clean finish to the 2026/27 tax year and an easy Self Assessment return afterwards.

We already cover how to choose an accountant in our Leeds taxi driver accountant guide and the 55p mileage sums in our Leeds night driver mileage guide. This article does something different. It walks through the paperwork you should gather around the tax year end, and the Leeds licensing points that sit alongside it.

Drivers who want local support can also see our Leeds accountancy page.

Key takeaways

• The tax year ends on 5 April 2027, so income and expense records must cover 6 April 2026 to 5 April 2027.
• Leeds City Council asks drivers to supply an HMRC tax check code when they renew a licence, so tidy records help twice.
• Black cabs and hackney carriages cannot use the simplified mileage rates, so they need actual-cost records.
• Leeds does not appear on GOV.UK's list of clean air zones, but always check the council's current vehicle rules before you buy.
• Keep records for at least 22 months after the tax year if you file on time, and longer for business records.

What is a taxi driver year-end checklist?

A taxi driver year-end checklist is a short list of records, figures and licence documents you collect around 5 April, the end of the UK tax year. It shows your real takings and costs for the year, and it makes your Self Assessment return faster to prepare and easier to defend.

Why does 5 April matter to Leeds taxi and private hire drivers?

The tax year runs from 6 April to 5 April, and your Self Assessment return reports profit for that period only. Anything you earn or spend after 5 April belongs to the next year. A tidy cut-off stops income from slipping into the wrong year, and it keeps your accounts consistent.

According to GOV.UK's Self Assessment deadlines, the 2025/26 online return is due by 31 January 2027. The 2026/27 return will follow a year later, with the usual 31 January deadline. Our key tax dates guide lists the other dates drivers tend to miss.

A deadline that feels far away is still a reason to act now. Records are easiest to collect while the year is fresh, and while apps and banks still show full history. Waiting until January means chasing statements under pressure.

Which income records should you collect before 5 April?

Collect every record of money received for driving between 6 April 2026 and 5 April 2027. That means app payment statements, cash fare notes, tips, account and contract work, and any rank or radio-circuit takings. HMRC expects you to declare all of it, whether it is paid by card or in cash.

App and platform statements

Download weekly or monthly earnings statements from each app you drive for. Check that the total matches the money that reached your bank. If a platform shows a gross fare and a separate service fee, record both, because the fee is usually a business cost.

Cash fares and tips

Cash is the item most often forgotten, and it is the item HMRC cares about most. Write down daily cash takings in a notebook or spreadsheet at the end of every shift. Do not estimate at year end. A running log is far more believable than a figure you reconstruct in January.

Contract, account and rank work

Hackney carriage drivers often mix rank fares, account customers and pre-booked work. Keep invoices and payment slips for account work, and match them to bank credits. Include every source in your total income, even small ones.

Which expense records do Leeds drivers need to keep?

Keep a receipt, invoice or statement line for each business cost in the year. Typical items include fuel or charging, servicing, repairs, insurance, licence fees, phone costs and accountancy fees. Only costs wholly and exclusively for business can be claimed, and mixed-use costs need a fair business share.

The full list of allowable costs is in our allowable expenses guide. For the detail on logs, see our mileage log and bookkeeping guide.

• Fuel, electricity for charging, and car washes used for business.
• Servicing, MOT, tyres and repairs.
• Vehicle insurance and breakdown cover, with a business share if the car is also personal.
• Leeds City Council licence fees and related checks paid in the year.
• Phone, data, parking and tolls used for work.
• Accountancy and bookkeeping fees.

Can Leeds hackney carriage drivers use the simplified mileage rates?

No. According to GOV.UK's simplified expenses vehicle guidance, black cabs and hackney carriages are excluded because they are made for commercial use. They must claim actual vehicle costs instead. Private hire drivers using an ordinary car can choose either method.

For 2026/27, the same GOV.UK page gives 55p a mile for the first 10,000 business miles and 25p a mile after that for cars. You cannot use the flat rate on a vehicle where you have already claimed capital allowances. Pick one method per vehicle and stay with it.

Our mileage calculator lets you test both methods on your own figures.

How do you choose between flat rate and actual costs before the year closes?

Compare both methods using the year's real figures, then record the choice. Work out miles multiplied by the flat rate, and compare it with your actual vehicle costs plus any capital allowances. Pick the higher legitimate claim, but only if the records support it.

The comparison is easier at year end because you have full-year totals. Do the sum in April, not in January. Our Leeds night driver article shows worked numbers for the 55p rate, so we do not repeat them here.

What is the year-end process, step by step?

Work through the same ordered routine every April. It takes a few hours if your records are tidy, and a few weekends if they are not. Here is a simple order that works for most Leeds drivers, from first download to final folder.

1. Download all app earnings statements for 6 April 2026 to 5 April 2027.
2. Total your cash fares and tips from your daily log, and agree them to deposits.
3. Download your business bank statements and mark each line as income, expense or personal.
4. Gather receipts and invoices for fuel, repairs, insurance, licence fees and phone costs.
5. Finish your mileage log, with the opening and closing odometer readings for the year.
6. Decide between simplified mileage and actual costs, if your vehicle allows the choice.
7. Check you can get your HMRC tax check code details ready for the next licence renewal.
8. Save everything in one dated folder, then send it to your accountant.

What do Leeds City Council licensing rules mean for your records?

Leeds City Council licenses hackney carriage drivers, private hire drivers and operators. According to its renewal page, a driver renewal needs an HMRC tax check code, a copy of the DVLA licence and a DVLA consent form. The licence expires if you renew late.

The same page says the badge can be renewed up to six weeks before the renewal date, and that a relevant fee applies. The council publishes the amount on a separate licence costs page, so check the current figure there. We have not quoted a fee because it may change.

Keep licence fee receipts with your tax records. They are a business cost, and they also prove your licence was current. The council's page does not cover DBS checks or vehicle tests, so read its licensing policy before each renewal.

Is there a Clean Air Zone in Leeds?

No charging zone appears in GOV.UK's current list. The GOV.UK clean air zones page names Bath, Birmingham, Bradford, Bristol, Portsmouth, Sheffield and Tyneside, and does not mention Leeds. That is a good sign for local drivers, but you should still check the council before buying a vehicle.

Press reports from October 2020 say Leeds City Council dropped its planned charging zone after air quality improved. We could not reach a current council page on the point, so treat this as background and confirm with the council. Vehicle age and emissions rules for licensed taxis can still apply separately.

This matters for your records because a vehicle purchase or lease may be a large cost in the year. Keep the invoice, the finance agreement and the date the car first went into business use.

What should you do about vehicle purchases and finance?

Keep the sales invoice, finance agreement and registration document for any vehicle you bought, leased or sold in the year. These decide how the cost is treated in your accounts. The method depends on whether you use simplified mileage or actual costs.

If you claim actual costs, you may be able to claim capital allowances on the purchase price, but that depends on the vehicle and your circumstances. Check GOV.UK's capital allowances guidance and ask an accountant before choosing.

Do not claim finance repayments in full without checking. Only the business share of the interest is normally allowable, and the capital element is treated differently.

How long must you keep your records?

Keep Self Assessment records for at least 22 months after the end of the tax year if you file on time, or 15 months after you file if you file late. GOV.UK says self-employed people must keep business records for longer than that, so confirm the period before you throw anything away.

According to GOV.UK's guidance on how long to keep records, HMRC can check your records to make sure you pay the right tax. Store scans in cloud storage, and keep paper originals if a scan is unclear.

What changes with Making Tax Digital for Income Tax?

Making Tax Digital for Income Tax (MTD) moves some self-employed drivers to digital records and quarterly updates. Whether you are in scope depends on your income and start date, and we have not verified the current thresholds this run. Check GOV.UK's Making Tax Digital for Income Tax guide.

If you are in scope, a year-end habit becomes a monthly habit. Our Making Tax Digital service explains how we help drivers keep digital records without extra stress.

Comparison: year-end records by driver type

What does an illustrative example look like?

Here is an illustrative example using an invented Leeds private hire driver. The figures are made up to show the method, and they are not a prediction of your result. Your own numbers will differ, so use this only as a guide to the method.

The driver earns £31,000 of fares in the year, of which £4,000 was cash recorded in a daily log. She drives 18,000 business miles in a standard car and uses simplified mileage. Her claim is 10,000 miles at 55p, which is £5,500, plus 8,000 miles at 25p, which is £2,000, giving £7,500.

She adds £620 for licence fees, £380 for phone costs and £450 for accountancy. Her total allowable costs are £8,950, so her taxable profit is £22,050 before personal allowances. A gap in the cash log would have raised questions, so she keeps it daily.

What are the common mistakes, and what penalty does each trigger?

The most common mistakes are missing cash, weak mileage logs, late filing and mixing personal costs into the claim. Each can trigger a penalty or a tax enquiry. The amounts below come from GOV.UK, so check the current figures before relying on them.

• Filing late: according to GOV.UK's Self Assessment penalties page, the first penalty is £100, with daily penalties of £10 after three months, capped at £900.
• Paying late: GOV.UK lists 5% of the unpaid tax at 30 days, at six months and at 12 months, plus interest.
• Leaving out cash fares: HMRC may open an enquiry, and the tax owed, plus penalties and interest, can follow.
• Claiming the flat rate on a hackney carriage: it is not allowed, so the claim would be wrong.
• Missing the licence tax check: Leeds asks for a code at renewal, and the licence expires if you renew late.
• Claiming personal mileage or costs: HMRC can remove the claim, and you may owe extra tax.

Key terms

• Tax year: 6 April to 5 April the following year.
• HMRC: His Majesty's Revenue and Customs, the UK tax authority.
• Self Assessment: the system for reporting self-employed income to HMRC.
• Simplified expenses: flat-rate mileage instead of actual vehicle costs.
• Capital allowances: tax relief on certain business assets, such as a vehicle.
• MTD: Making Tax Digital, HMRC's digital record and quarterly update system.
• Tax check: the HMRC code needed when you renew a taxi or private hire licence.
• PHV: private hire vehicle.

How UK Driver Accountants helps

We work only with drivers, on fixed fees from £20 a month, and we are independent of Uber and Bolt. We help Leeds drivers gather year-end records, choose the right mileage method and file on time. See our pricing and our personal tax service.

Conclusion

A calm year end starts with a repeatable routine: income, expenses, mileage, licence papers and a dated folder. If you want a second pair of eyes before 5 April, contact our team for a free conversation about your records.

Last reviewed 9 October 2026 by the UK Driver Accountants tax team.

This article gives general information and is not personal tax advice. Speak to a qualified accountant about your own circumstances. If HMRC raises a dispute or penalty, professional representation is recommended.