Taxi costs - not dropped due to petrol decrease?
Discussion
TheAngryDog said:
Welshbeef said:
vikingaero said:
So it would be fair for your employer to say to you:
"Mr WB, fuel prices have dropped by x% so we're reducing your salary or hourly rate by the same. Do you have oil heating at home? Oh you do! Well we'll knock another x% off your salary."
They have. "Mr WB, fuel prices have dropped by x% so we're reducing your salary or hourly rate by the same. Do you have oil heating at home? Oh you do! Well we'll knock another x% off your salary."
Our pence per mile rate has reduced from £0.19 to £0.16 and looking to decrease further.
My business actually does it for me automatically. I get taxed via PAYE.
The business pay whatever it is per mile the revenue have decided is OK that month - 14p say, then the business does an adustment called AMAP (Approved Mileage Allowance Payments) in my pay for the difference up to the 45p per mile rate.
Basically, because I don't get paid 45p per mile for business they reduce my income tax bill for a value calculated based on the bit between the 14p and the 45p, multiplied by the number of miles I did.
CrouchingWayne said:
Aberdeen taxis do seem very pricey!
I think the waiting fare and the mileage rates are set by the council. I believe these are calibrated every 6m at the taxi service that gets done, so I assume if they changed the rates it would take a little while to filter down to all cabs?
Everything is expensive in Aberdeen, due to the oil industry. A lot of the prices for things are Londonesque.I think the waiting fare and the mileage rates are set by the council. I believe these are calibrated every 6m at the taxi service that gets done, so I assume if they changed the rates it would take a little while to filter down to all cabs?
TheAngryDog said:
Can't you claim the difference back from the Government anyway? It was 45ppm last time I had to claim.
The difference lets call it £0.20 you'd then get the tax back so 20% or 40% or 45% depending on your prevailing rate. If a company decides to pay you 1p per mile and you are a higher tax rate payer then the 43p difference you'd get back£0.17
CraigyMc said:
Yes, you can.
My business actually does it for me automatically. I get taxed via PAYE.
The business pay whatever it is per mile the revenue have decided is OK that month - 14p say, then the business does an adustment called AMAP (Approved Mileage Allowance Payments) in my pay for the difference up to the 45p per mile rate.
Basically, because I don't get paid 45p per mile for business they reduce my income tax bill for a value calculated based on the bit between the 14p and the 45p, multiplied by the number of miles I did.
Exactly you don't get the difference between £0.14 and £0.45 ie £0.31 instead you are getting £0.062 or £0.124 on top of the £0.14. My business actually does it for me automatically. I get taxed via PAYE.
The business pay whatever it is per mile the revenue have decided is OK that month - 14p say, then the business does an adustment called AMAP (Approved Mileage Allowance Payments) in my pay for the difference up to the 45p per mile rate.
Basically, because I don't get paid 45p per mile for business they reduce my income tax bill for a value calculated based on the bit between the 14p and the 45p, multiplied by the number of miles I did.
Lots of people make this assumption but it is incorrect.
I'll clear up the question of who sets taxi fares, because this is (one of the things) I do for a living.
Local Authorities set the fares for hackney carriages, but not for private hire vehicles. The council can only review the fares when someone (anyone - it does not need to be anybody associated with the taxi trade) applies for a change in fares.
This normally comes in the form of an application from the taxi trade for an increase in taxi fares due to the ever rising costs of running a vehicle, but, actually, there is nothing stopping a member of the public from applying to their council for a reduction in hackney carriage fares.
You'd have to take all the costs of running a licensed vehicle into account though, and currently, it is insurance, as much as fuel which is one of the biggest costs of running a taxi of any description. I've seen annual renewal costs of £2000, £2500 and £3000 for licensed vehicles.
Any change in fares is rolled out very quickly to the hackney trade by getting a mobile technician to visit all the ranks to re-calibrate meters.
Private hire fares are not controlled by the Council. Instead, we rely on competition to allow PH fares to find their own limits. They can charge more or less than the council set hackney fares, but if they use hackney vehicles on their private hire system (hackneys can work on a radio system as well as from the ranks), then those vehicles can only charge the council fares or lower.
Sounds complicated? You don't know the half of it. It's one of the problems with licensing hackney vehicles under a piece of legislation from 1847.
Local Authorities set the fares for hackney carriages, but not for private hire vehicles. The council can only review the fares when someone (anyone - it does not need to be anybody associated with the taxi trade) applies for a change in fares.
This normally comes in the form of an application from the taxi trade for an increase in taxi fares due to the ever rising costs of running a vehicle, but, actually, there is nothing stopping a member of the public from applying to their council for a reduction in hackney carriage fares.
You'd have to take all the costs of running a licensed vehicle into account though, and currently, it is insurance, as much as fuel which is one of the biggest costs of running a taxi of any description. I've seen annual renewal costs of £2000, £2500 and £3000 for licensed vehicles.
Any change in fares is rolled out very quickly to the hackney trade by getting a mobile technician to visit all the ranks to re-calibrate meters.
Private hire fares are not controlled by the Council. Instead, we rely on competition to allow PH fares to find their own limits. They can charge more or less than the council set hackney fares, but if they use hackney vehicles on their private hire system (hackneys can work on a radio system as well as from the ranks), then those vehicles can only charge the council fares or lower.
Sounds complicated? You don't know the half of it. It's one of the problems with licensing hackney vehicles under a piece of legislation from 1847.
I run my own Chauffeur business doing long distance work. I have not put my prices up since 2010, due to the recession and recovery, and have absorbed all the fuel price increases since then. My insurance, licensing and servicing costs have all gone up during this period as well, and have you seen the increase in drop off and parking fees at the London airports over the last couple of years. Now they are a rip off.
Saved a bit with the Dartford Crossing changes though so it's not all doom and gloom
I have not changed my prices as a result of the drop in diesel prices, this is my chance to recover a little bit of my significantly increased running costs over the last 5 years, hope you don't mind to much WB.
Not a single one of my customers has asked if I am going to drop my prices.
Saved a bit with the Dartford Crossing changes though so it's not all doom and gloom
I have not changed my prices as a result of the drop in diesel prices, this is my chance to recover a little bit of my significantly increased running costs over the last 5 years, hope you don't mind to much WB.
Not a single one of my customers has asked if I am going to drop my prices.
Edited by Monkeylegend on Sunday 25th January 19:01
Meter rates are set by the licensing authority, changes require a full licensing comittee meeting, meter changes cost £10-£15 a time per meter (at a meter fitters)
Drivers cannot charge more than the indicated fare, but can charge less as a discount
All journeys (or parts of a journey) in a cabs licensing area require the meter to be used, outside the area anything goes...
Each area has its own regs on "extra time" for bank holidays, etc
I pay £1000 a year insurance, £150 a year for a plate and £150 for a 1 year badge
Cash jobs pay the best, school contracts the worst (lowest bids win)
When fuel shot up to £1.50/ltr meter rates were not increased, so they wont go down just cos the fuels gone down for a while
If the cost of a cab is an issue do what you would do for central heating installations or roof repairs, get 3 quotes!
Drivers cannot charge more than the indicated fare, but can charge less as a discount
All journeys (or parts of a journey) in a cabs licensing area require the meter to be used, outside the area anything goes...
Each area has its own regs on "extra time" for bank holidays, etc
I pay £1000 a year insurance, £150 a year for a plate and £150 for a 1 year badge
Cash jobs pay the best, school contracts the worst (lowest bids win)
When fuel shot up to £1.50/ltr meter rates were not increased, so they wont go down just cos the fuels gone down for a while
If the cost of a cab is an issue do what you would do for central heating installations or roof repairs, get 3 quotes!
These guys work very hard and it's not a great thing to be doing, many are on the bread line earning £100 a day for 10 hours work... let them earn more money, it might not last for long.
Do you want to earn £30k a year, have a depreciating £5k car, then pay maintenance and insurance and be left with supermarket wages?
Do you want to earn £30k a year, have a depreciating £5k car, then pay maintenance and insurance and be left with supermarket wages?
Jasandjules said:
As far as I can tell, Taxi Drivers tend not to be exceedingly rich. They do hard work and long hours, so I don't begrudge them whatever they make.
Not to sound rude, but it isn't really a job that should command a large salary. There is lots of driving jobs that don't pay well at all, lorry drivers and bus drivers. I wouldn't class driving a car as hard work.
I know someone who drives the school buses on contract and isn't paid well at all. I'm not sure taxi drivers deserve more.
Taxi driving was the default job for a long time when people were paid off from their own job. There is too many in certain areas for that reason.
Here in Aberdeen there is plenty of taxis during the day, but not enough at night. I've been told countless times that there is no taxis available when I've phoned in around 7-8pm on a weekend night. Then at the end of the night it is unacceptable the wait for a taxi. The queue is regularly over an hour and I've seen it over two hours. The ranks have huge queues from about 11pm at night all the way through to 4am.
There is plenty of work there for people who are wanting it.
Taxi drivers don't want to work in the hours there is a demand for them, yet complain they don't get enough trade. Can't have it all ways.
Many of them also have premium German cars as their taxi. If they were hard up, they'd not be driving about in a nearly new 6 cylinder German saloons.
Half of them aren't even that good. Many don't even know where my street is and have to ask the best way to go.
Fox- said:
nct001 said:
These guys work very hard and it's not a great thing to be doing, many are on the bread line earning £100 a day for 10 hours work...
Presumably thats £100 after all expenses - ie actual take home?Otherwise thats 10 5-6 mile trips in a 10 hour shift?!
Driver101 said:
I've been told countless times that there is no taxis available when I've phoned in around 7-8pm on a weekend night. Then at the end of the night it is unacceptable the wait for a taxi. The queue is regularly over an hour and I've seen it over two hours. The ranks have huge queues from about 11pm at night all the way through to 4am.
There is plenty of work there for people who are wanting it.
Taxi drivers don't want to work in the hours there is a demand for them, yet complain they don't get enough trade. Can't have it all ways.
I wouldn't want to work through the night to the early hours of the morning, on a weekend, picking up drunks all weekend, for taxi drivers wages. Don't blame 'em if their fare is fixed.There is plenty of work there for people who are wanting it.
Taxi drivers don't want to work in the hours there is a demand for them, yet complain they don't get enough trade. Can't have it all ways.
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