How to actually use an Income & Expenditure recording system (without dreading it)
A simple, weekly routine for keeping your Income & Expenditure records as a self-employed taxi driver, so January never turns into a scramble.
Every plan we offer includes an Income & Expenditure recording system as standard, but a system is only as good as the habit behind it. Here’s how to actually use one, in about ten minutes a week.
What it actually is
An Income & Expenditure record is nothing more than two running lists: money coming in, and money going out, for your business. Since April 2024, “cash basis” - recording money when it’s actually received or paid, rather than complicated accruals accounting - is the default method for sole traders, which is good news, because it’s the simple, common-sense way most drivers would keep track anyway.
Income: log it as it comes in, not as you remember it
Every fare, every platform payout, every cash job - write it down on the day, or at the very latest, at the end of that working day. Note the date and the amount. If you drive for more than one platform alongside your own private hire work, keep them distinguishable in your log even though they’ll all go on the same Self Assessment return - it makes any later question far easier to answer.
Expenses: little and often beats a shoebox of receipts in January
Fuel, phone, licence renewals, repairs, parking - log each one against the date it happened, with the receipt kept (a photo on your phone is fine). The categories that matter most for a driver are usually:
- Fuel or mileage
- Vehicle repairs, servicing, and MOT
- Insurance
- Licence and plating fees
- Phone (business proportion)
- Any platform commission or subscription fees
Waiting until January to reconstruct a year of expenses from memory is how deductions get missed - and missed deductions are tax you didn’t need to pay.
Set a weekly slot and don’t skip it
Ten minutes, once a week, at the same time - after your last shift of the week, for instance. That’s genuinely all it takes if you’re logging as you go rather than trying to remember three months back. The drivers who find record-keeping stressful are almost always the ones trying to do a year’s worth in one sitting.
Why this matters more than it looks like it does
Your Income & Expenditure record is what your whole tax return is built from. It’s what lets us give you accurate tax-saving recommendations rather than generic ones. It’s your evidence if HMRC ever opens a compliance check. And if you’re one of the drivers being brought into Making Tax Digital, you’ll need digital, up-to-date records every quarter, not just once a year - so the habit is worth building now, before it becomes compulsory for you.
We’ll set it up, and check it with you
We supply every client with an Income & Expenditure recording system from day one, and prepare your full account from it at year end. If you’d like us to take a look at how you’re currently keeping records and tidy it up, give Michael a ring on 07799 414972 - it’s a free conversation either way.