Taxi driver invoice template

How do taxi drivers usually invoice?

Taxi drivers are paid per journey on the meter or at a pre-agreed fare and issue a receipt on request, with a proper invoice only for account customers such as businesses, schools and councils, who are invoiced monthly with a schedule of journeys on 14 to 30 day terms. Airport transfers and long journeys are quoted as fixed fares and often paid in advance by card. Waiting time and extra stops are listed separately.

Taxi drivers in this example are paid on receipt. Hourly rates run from £18 to £35.

What should a taxi driver put on an invoice?

Beyond the legal basics, taxi drivers should:

• For account customers, attach a schedule of journeys with date, time, pick-up and destination.
• State the agreed fare for pre-booked journeys and the waiting time rate.
• Issue receipts with your licence number; business passengers need them for expenses.
• Invoice council and school contracts in the format the contract requires, usually monthly.

Every UK invoice, whatever the trade, must also show:

• a unique, sequential invoice number
• your business name and address (and company number if you trade as a limited company)
• the client’s name and address
• the invoice date and, for VAT invoices, the date of supply if different
• a clear description of each item of work or goods
• the amount due and when it must be paid
• your VAT number, the VAT rate per line and the VAT total, if you are VAT registered

Do taxi drivers charge VAT?

Taxi and private hire fares are standard rated at 20% once you are VAT registered, which is compulsory above £90,000 turnover; most owner drivers are below it and charge no VAT. If you drive for an operator that is VAT registered, the operator may account for VAT on fares under its own arrangements. Below the threshold, invoices and receipts show no VAT.

On the Flat Rate Scheme the sector for taxi drivers is usually “Transport or storage, including couriers, freight, removals and taxis” at 10% of VAT-inclusive turnover, with a 1% discount in the first year of registration. If you spend little on goods you may be a limited cost trader and have to use 16.5% instead. The scheme suits businesses with few VAT-able costs; check it against the standard method with the VAT calculator before joining.