0.33% of Total Income at the end of the year

 

What is your break even point?

what is that?

 

It's when you are at a breaking point in your life and in desperation you join Uber.

 

Your break even point is not 170£ you haven't factored in depreciation tax is another story plus you said you were at the mechanic that is also part of overheads realistic number with 8 new tyres a year 300£ worth of car wash
3 services 2 mots and pco license we are talking about 250£ -270£ per week before tax
I did not take into account if something goes wrong with the car
That's a more accurate figure but only if you keep the car for a year it's based on a year on year basis if you are like me and you buy a cheap car drive it for 4-6 months and sell it you lose a lot less on depreciation

 

Car depreciation
Taxes & cost of accountants services to prepare accounts once a year
Road tax
MOT
Repairs/servicing/tyres
Insurance
Fuel
Car wash
PCN`s and other fines

 

Parkings, permit for residents not free for me, Smartphone, internet, Dartford charge, timing belt £300/400, bushies £100 each one do to speed bumps,

 

Guys,

What is your break even point? Mine is £170 per week, including fuel.

My car was with mechanic last week and had to take a Uber as a customer to pick up. Had a chat with driver, nice guy, but did not even know what his break even point was!

He also did not know he was getting 75p/£1 mile picking up from Heathrow, lol.

Personally I think some of this blame lies with Uber as a company not passing down the information to their new 'partners'

Unfortunately many drivers don't know difference between gross and net and as result.
When I had E class, even without turn key day would cost me £60.

In 3 yrs I have lost from £23500 to £10500 on car value.
That is a hidden cost that many don't see and even accountant has 18% annual depreciation set by government which is not realistic.

Uber is not to blame. It ppl who jumped on the wagon without thinking ....wooow, this is too good to be true.

On the other hand, ppl greed (referrals) helped killing the business.

Bear in mind Uber was sweet earner some 4-5 yrs ago when rates were much higher.

 

D1991D with all due respect, I paid £4,700 in august 2015 so even if it worth 1k as cheap part exchange against newer car, does not matter: do you think I have not made that back up to now?

 

My friend well done you brain works you didnt pay alot for your work car wich is great , but even if you paid 5 roubles its still costs you are runing a buisness never forget that , if you lose 4000£ over the course of the time you had the car its still a loss make sure you count every penny to get a accurate estimate of how much you made save receipts for how much you spent on food etc thats the proper way to be self employed ,

btw are u the chap with the manual ford ? what plate is your car ? i paid 4500 plus 500 for service and new tyres so im in for 5000£ for a 62 plate
but if someone plans to do uber for long time i recommend spending abit more and getting a lower mileage one it will work out the same in the end unless you drive like agranny sunday driver on her way to the church

 

God bless the queen of England

 

No, mine is 61 plate autobox

 

Guys,

What is your break even point? Mine is £170 per week, including fuel.

My car was with mechanic last week and had to take a Uber as a customer to pick up. Had a chat with driver, nice guy, but did not even know what his break even point was!

He also did not know he was getting 75p/£1 mile picking up from Heathrow, lol.

Personally I think some of this blame lies with Uber as a company not passing down the information to their new 'partners'

Welldone in judging the other guy, by the looks of it you need to calculate your figures again.
Car Buy/depreciation or rental costs
Maintenance + MOT and Service
Licenses PHV and PCO
Fuel
Insurance
Car wash or cleaning products plus little extras
Phone and network costs
Income tax and NI - accountant fees
Fines /parking costs
Food on shift (nights only)

 

Welldone in judging the other guy, by the looks of it you need to calculate your figures again.
Car Buy/depreciation or rental costs
Maintenance + MOT and Service
Licenses PHV and PCO
Fuel
Insurance
Car wash or cleaning products plus little extras
Phone and network costs
Income tax and NI - accountant fees
Fines /parking costs
Food on shift (nights only)

Medical, Recovery Cover and Postage and Stationary/Sundry Trade Expenses. Also if car is used for personal use deduct 5% of vehicle costs only as a disallowable expense, think that includes vehicle capital allowance.Interesting to see mentioned at 18%, I rang up and was told 20%.

 

Just checked a few accounting sites and it seems that “an occasional meal for a self employed person will be allowed if taken on a business journey that takes you outside of your normal itinerary”

It does not however include a couple of bottles of fine wine (or Prosecco for Betty), nor does it include Cream Tea if you’re Rockin’ at the Ritz

So you can’t claim your MaccyDees, Chicken Cottage or Babs & Momo Kebab Shop specials close to home

 

Just checked a few accounting sites and it seems that "an occasional meal for a self employed person will be allowed if taken on a business journey that takes you outside of your normal itinerary"

It does not however include a couple of bottles of fine wine (or Prosecco for Betty), nor does it include Cream Tea if you're Rockin' at the Ritz

So you can't claim your MaccyDees, Chicken Cottage or Babs & Momo Kebab Shop specials close to home

http://www.taximanager.co.uk/blog/c....uk/blog/can-i-claim-the-cost-of-meals-and-clothing-against-my-taxable-profits/

 

my break even point is not more than £240.00 inclusively. £170.00 break even point is very good. Today I went to terminal 2. After passenger drop off, I checked the queue. It was 96 cars. On leaving after the tunnel, I rechecked the queue, it was 98. As soon as I reached A4, I got a passenger to Terminal 3. After drop off I checked the queue. this time it was 100 cars. I didn't wait. By 3pm I clocked £112.00, which was not bad, and came home.

 

Thx for details of your day.
Very impressive.
2014, 2015 you could have earned that on one journey from west end on surge.
That's a good reason to drive for uber, now there's no reason.

 

Has nobody mentioned that you can use vehicle depreciation against tax?

Buy a cheap car with little to no depreciation and have to pay for repairs.

Get a newer car still under Warranty and offset depreciation to reduce tax. With the advantage of a slightly nicer work environment. Maintenance will be simpler.

People sometimes overlook vehicle downtime and driver fatigue.

 

http://www.taximanager.co.uk/blog/c....uk/blog/can-i-claim-the-cost-of-meals-and-clothing-against-my-taxable-profits/

Yep that basically agrees with the other accountant sites I read, so these guys who are claiming meals whilst working within a couple of hours from home are taking the Michael

 

Exactly. I've heard drivers claiming for ALL meals and SNACKS... They will come croppers soon enough.

Still, I suppose they are better than those drivers that didn't even know they had to pay tax and NI. Perhaps that's part of the reason 96% don't last one year

 

Has nobody mentioned that you can use vehicle depreciation against tax?

No, you can not because you get capital allowances instead.

3 Jackasses & a camel

latest new model luxury cars have replaced jack asses. We don't have camels in Kurdistan

 

When I was contracting in financial services we could claim £20 a day allowance for food on the basis I was out of the house for 11 hours (including a 3 hour commute)

I’m hearing some big changes to IR35 now though however

 

I don't think you can claim allowances for food.

 

Has nobody mentioned that you can use vehicle depreciation against tax?

Buy a cheap car with little to no depreciation and have to pay for repairs.

Get a newer car still under Warranty and offset depreciation to reduce tax. With the advantage of a slightly nicer work environment. Maintenance will be simpler.

People sometimes overlook vehicle downtime and driver fatigue.

Fair point but you are making more by buying a cheap second hand car in the first place because whatever you spend on a car eats into profits that you can save tax on.
Tax is only a percentage of profits.
Example(numbers not real earnings):

Profit (income minus all expenses apart from car) 50000.
car - 10000 depreciation allowance 18% means 1800 taken off profit which is now 48200.

Car - 40000 depreciation allowance 18% means 7200 taken off profit which is now 42800.

So In your pocket is extra 5600 every year minus tax.

Tax is not 100 percent so you always be better off buying cheap second hand. Repairs are expenses and will never equate to loss of extra profit of buying newer more expensive car if you know how to buy a second hand car.

 

Can you tell is who did u ring and who told you that is 20%?
My accountant has been deducting 18% for yrs as depreciation.

Thanx.

Helpline, does 18% include personal use.

 

Nope. Coz that car I use for business only.

That is why I think my accountant takes 18% for depriciation each year.

It goes like this:

£23500 price paid
- £4230 (-18%) first yr depriciation
------
£19270
- £3468 (-18%) second yr depriciation
-----
£15801
..................and so on.

 

Can you tell is who did u ring and who told you that is 20%?
My accountant has been deducting 18% for yrs as depreciation.

Thanx.

My accountant uses the simplified mileage method which includes the depreciation.

 

My accountant uses the simplified mileage method which includes the depreciation.

Ok. Can you tell us pls his method?

 

That's the 45p a mile allowance, covers actual business mileage only of which you must keep full records.

It generally doesn't work out advantageous as your car gets to that stage where it needs costlier maintenance.
But it can work if you but new or ex-demo every couple of years.
Downside is that you can't claim all the other expenses like fuel, other running costs, capital allowances etc

 

I created an Excel worksheet for breakeven analysis that allows you to customize for your market area. You can input many variables including fuel cost, purchase price of vehicle, expected maintenance and repairs for vehicle over the useful life, expected miles driven per week, pay per mile driven. pay per minute driven. Feel free to email me and I will send it. Please give me your comments. To me it makes it pretty clear that you cannot hope to clear minimum wage if you work 20 hours per week even in the top market areas.

 

The Rideshare Profitability Analysis pdf is the non-modifiable version...all of the asterisk line items can be modified in the Excel version to customize for your market.

Re-uploading the file.

Please let me know if you can open the pdf. I cannot.

 

I can open .pdf
There is no excel attachment

 

it does not allow me to upload the Excel.

 

it does not allow me to upload the Excel.

Put it inside a zip or WinRAR and should be able to upload.