Becoming a Self-employed Taxi Driver – Things to Know

The thought of becoming self-employed is a dream for many, in fact, it was found that many people in the UK are opting to be self-employed. Approximately 4.8 million people are self-employed, with 42% working freelance, accounting for 6% of the overall workforce.

While this is likely to grow, with more people opting to be their own boss, you may wonder how you can do it.

If you love to drive and have a car, or even if you don’t yet, becoming a self-employed taxi driver could be your way to being your own boss.

The car

The first thing you need to get right is the car. Will you be driving a regular car that can fit four people, or something slightly bigger to increase chances of trips to places such as an airport?

You’ll also need to consider whether you want one that’s old or new, and with cars of all sizes at places like Peter Vardy, you’ll be able to find a car that’s just right for what you’re looking for.

Qualifications and training

While there aren’t specific courses or qualifications for taxi drivers, you will need a license that can be displayed within your vehicle at all times. These can be obtained from the local council where you intend to work.

Each local council authority will have their own conditions when it comes to licensing, but as a general overview you’ll need to meet the below criteria:

• Be 21 or over
• Hold a full driving license
• Pass a CRB check
• Have the right to live and work in the UK
• Pass an area knowledge test
• Pass a medical exam by a nominated GP
• Complete a specialised driving test that includes a written and practical assessment, alongside an eye test

Going self-employed

When it comes to going self-employed, you’ll also need to inform HMRC. This is quick and easy and can be done online, where you can either register yourself as a company or a sole trader.

You’ll then receive everything you need, and be notified when it comes to paying your taxes. It may help to look for a good accountant who can help you with the ins and outs of being self-employed.

Your accountant will be able to tell you what’s tax deductible, and when everything needs to be paid, alongside advising on how much to keep saved away.

Getting work

If you’re just starting out, a good way to get work is to contact local firms. While you may want to remain self-employed, a number of firms will hire on a self-employed basis, which is a great way to ensure you have a stream of work, while also continuing to be your own boss.

Other ways could involve pulling on friends and family for work, and even advertising in local shops and online via social media.

There are other things to consider too, such as your rate of pay, which you can gauge as you go on. But, if you want to be your own boss, these three steps will definitely help.