Taxi Driver

Keep your tax affairs on track as a licensed taxi driver in Ireland.

Allowable Expenses

• Vehicle Costs — Use Revenue's approved mileage rate or actual costs — fuel, insurance, NCT, servicing, and tyres.
• SPSV Licence Fees — NTA small public service vehicle licence and annual renewal — legally required and deductible.
• Dispatch / Radio Fees — Fees to a taxi co-operative or radio dispatch company for bookings.
• Meter & Accessories — Taximeter calibration, credit card terminal, and roof sign maintenance costs.
• Vehicle Cleaning — Regular cleaning to maintain passenger standards — a deductible operational cost.
• Parking Fees — Taxi rank fees and business-related parking costs while on duty.

Tax Tips

• Keep a daily record of all fares — Revenue expects taxi drivers to have contemporaneous records of income.
• The NTA SPSV licence plate has a resale value — its tax treatment differs from a regular business expense (it may be a capital asset).
• Pension contributions to a PRSA (Personal Retirement Savings Account) reduce your taxable income — limits are age-related.
• If you rent your vehicle from a fleet company, the rental payments are fully deductible.

Frequently Asked Questions

Do I need to declare cash fares in Ireland?

Yes. All cash income, including taxi fares paid in cash, must be declared on your Form 11. Revenue cross-references reported income against licensing data and bank deposits. Failing to declare cash income is a serious compliance risk.

What is an SPSV licence and is it deductible?

A Small Public Service Vehicle (SPSV) licence is required by all taxi, hackney, and limousine drivers in Ireland. It is issued by the NTA and must be renewed annually. The licence fee is a deductible professional cost.

How do I claim vehicle costs as a taxi driver?

You can use Revenue's approved mileage rates or claim actual vehicle running costs (fuel, insurance, servicing, NCT, road tax). Choose the method that gives you the higher deduction — but once you choose actual costs for a vehicle, mileage rates cannot be used for the same vehicle.

What happens if Revenue audits my taxi income records?

Revenue selects returns for audit based on risk indicators including low declared income relative to vehicle records. Keep contemporaneous daily records of all fares, fuel receipts, and mileage logs. A complete and consistent record of business activity is your best defence in any Revenue compliance check.