If you’re considering becoming a PCO car driver in Chelsea and are applying for your PHV licence, you’ll need to be aware of the tax that you will have to pay. This way, you’ll be able to budget accordingly and see if you have enough money to continue working comfortably as an Uber driver.
There are several taxes that you would have to pay as a private hire driver in Chelsea, and these include income tax, national insurance contributions (NICs), council tax, VAT, and more. Before going to a PCO car hire service in Chelsea, read this to learn about PCO taxes.
Income Tax
Most of the PCO car drivers in the UK are classified as sole traders or self-employed individuals, which means you will have to take care of your income taxes yourself. If your annual income is more than £1,000, you will have to pay an income tax for that particular year.
National Insurance Tax
Your NIC Taxes will be determined according to your annual earnings. If you earn £25,000 a year, you will have to make the following assessments:
- £158.60 for Class 2 National Insurance Tax (£3.05 per week)
- If 38% of your annual income is below £6,475, you won’t pay Class 4 National Insurance
- 9% income tax on your annual earnings
- To get accurate calculations for your income tax rate, make sure to visit the government website.
Vehicle Excise Duty
Vehicle Excise Duty is a PCO tax paid by every driver in Chelsea, London. Depending on the type of PCO car, the driver will have to pay a different amount of vehicle excise duty.
For the first year, the standard road taxes tend to be higher with more complex payment methods. After the first year, the road tax drops to a much lower rate as the driver renews their licence every year. For your registered car, you have to pay over £150 a year.
The tax rate will also vary on the vehicle’s emissions, measured by CO2 levels. Switching to PCO electric cars results in lower tax rates and is a good way to cut down on costs in the long run.
If you’re looking for a reliable PCO car hire service in Chelsea, we can help! At G&M Direct Hire, our fleet includes fuel-based vehicles and PCO electric cars for you. You can rent our hybrid or electric cars at affordable rates to reduce your taxes.
Contact us for more information!
