At the start of their careers, taxi drivers are faced with a difficult decision: should they be employed by a company or become self-employed and start their own business? There are many reasons to consider both options and here in the UK, most taxi drivers have their motivations to justify their work. However, if you’re new to the industry, it can be overwhelming to make a decision. So here’s our guide to the pros and cons of self-employment or working for Coventry taxi companies:
The Legal Difference:
The main difference between working for yourself and working for Coventry Taxis companies is how you will be treated by the law. Of course, the nature of your work is unlikely to change from one day to the next, and you will hardly notice the model of your business. But self-employed people are legally paid directly by their clients and collect all earnings after expenses.
However, if you are employed by a company, it is legally obliged to collect all the profit (except tips) and then pay you a salary or wage. Some companies also employ self-employed people: this method is called franchising. In this method, you use the marketing and reputation of an established business to increase your income, even though you are largely self-employed.
Freedom of the road:
One of the main advantages of being a self-employed taxi operator is the ability to manage your own income and possibly increase your income by working more hours. The more you can earn in fares, the higher your fares will be and the more money you will earn every day.
You can also set your own working hours and plan your holidays when you want, and most importantly decide how to promote your taxi and how to take reservations. The ability to choose the best way to run your business is something that will appeal to virtually every Rugby Taxi driver.
Security and employment:
However, some people want a bit of security in their lives and prefer to work for larger companies. Not only are you more likely to receive a high income, as larger companies tend to take on many customers at once, but you also enjoy the benefits of a long-term employment contract.
Holiday pay, sick pay and special leave are things most employees are used to. If you are self-employed, you don’t have to worry. Partnering with a company can help you get started as a taxi driver and give you a cushion in case of an unexpected incident.
Ownership of your taxi service:
One of the most important questions when deciding whether or not to become self-employed is whether or not you can manage your nuneaton taxi service yourself. Many companies offer you the option of hiring a vehicle and taking out taxi insurance, but retain ownership of it. This will cost you a significant amount of your monthly income, but it also means you don’t have to pay for your taxi upfront.
However, it is advisable to own a decent vehicle or have the money to buy one to reduce your monthly costs. Make sure you also factor in the cost of maintenance and fuel; these can be significant. Your cab also needs to be in top condition, and you shouldn’t underestimate the importance of the parking attendant!
Taxes and finances:
If you are good with numbers, self-employment is not that difficult. However, you will have to file a self-assessment tax return every year. This is not too difficult, but it does require you to keep accurate records of your income and expenditure. You also have to make different payments to social security, which you should take into account when calculating your expenses.
However, if you work as an employee, you fall under the PAYE system. It is the employer’s responsibility to determine the amount of tax and national insurance you have to pay and pay it on your behalf. This means you earn more in your taxi and spend less time at home with your calculator!
The decision to be self-employed or to hire a taxi service is highly speculative and may change over the course of your career. For drivers who are at the beginning of their career, being employed by a company can be a good way to secure a steady income, but you might find yourself more freelance
