Question 1

Can taxi drivers get mortgages in the UK?

Accepted Answer

Yes, taxi drivers and Uber drivers in the UK can typically qualify for mortgages like any other self-employed individuals. However, the process may require additional documentation to verify income, such as tax returns or financial statements. Some lenders may specialise in providing mortgages for self-employed individuals, including taxi drivers, making it a great idea to explore different options to find the most suitable mortgage product for you.

Question 2

Can I use my own car for a taxi?

Accepted Answer

Yes, you can use your own car for taxi services, provided that it meets the requirements set by your local licensing authority. Typically, these requirements include having the appropriate insurance coverage, passing vehicle inspections, and obtaining a taxi licence or private hire driver's licence. You may also need to comply with specific vehicle standards, such as age limits, wheelchair accessibility, and signage displaying your taxi licence number. It's essential to check with your local authority to ensure that your car meets all necessary criteria before using it for taxi services.

Question 3

Can I use my taxi for personal use?

Accepted Answer

While it's possible to use your taxi for personal use, it's important to be mindful of any restrictions or regulations set by your local licensing authority or insurance provider. Using your taxi for personal use may impact your insurance coverage or compliance with licensing requirements.

Question 4

What is taxi finance?

Accepted Answer

Taxi finance refers to the specific type of financing options available for people who need to purchase or lease a vehicle for use as a taxi. This specialised finance allows taxi drivers to get the vehicles they need to operate their businesses without having to pay the full purchase price upfront.

Question 5

Can you get a car on finance for use as a taxi?

Accepted Answer

Yes, you can, however you may need to shop around! Some lenders are wary of lending to taxi drivers because of the high mileage the car is likely to do, and the fact that the mileage is unpredictable. This can affect the estimated value of the car at the end of the finance period, which is what puts some lenders off. However, this doesn’t mean you can’t get taxi car finance.

There are lenders out there who will offer car finance specifically tailored for taxi drivers. These financing options often come with flexible terms and conditions designed to accommodate the unique needs of taxi operators, including the unpredictable mileage and high levels of expected wear and tear.

Question 6

Can I finance a car for a taxi?

Accepted Answer

Absolutely! Whether you're looking to purchase a car outright or prefer the flexibility of a finance arrangement, there are options available to suit your needs. Financing a car for use as a taxi allows you to spread the cost over time, making it more manageable for your business.

Question 7

Does CarFinance247 offer taxi finance?

Accepted Answer

Yes we do! Getting minicab or taxi finance can be trickier than getting finance for car for private use, but that’s not a problem for us at CarFinance247. We can provide taxi car finance with all credit circumstances considered, including specialist bad credit finance, and we could even help if you have things like CCJs or debt management plans.

Question 8

Can I lease a car for a taxi?

Accepted Answer

Yes, leasing a car for use as a taxi is another viable option, but it can be harder to do. Leasing provides you with the opportunity to get a brand new vehicle that won’t need any MOT for three years – ideal for busy taxi drivers. You can drive it for a set period of time while making monthly payments, and at the end of the lease term you can typically choose to return the vehicle, or enter into a new lease agreement.

However, using a car as a taxi means the amount of wear and tear it will get over the lease period is less predictable, and it also means you’re likely to rack up a lot of mileage in a short period of time. Traditional personal and business leases have limits on these, so you will probably need to search for a specialist lease broker who will lease to taxi drivers.

Question 9

Can you finance a taxi with bad credit?

Accepted Answer

Having bad credit doesn't necessarily mean you won’t be able to finance a taxi. Some lenders specialise in providing car finance for taxi drivers with less-than-perfect credit histories. While the terms may vary, it's still possible to secure financing for a taxi even with bad credit, so don’t lose heart.

Question 10

Can I use my car on finance as a taxi?

Accepted Answer

Yes, if you've got car finance for your vehicle, you can use it as a taxi. However, it's essential to ensure that your finance agreement allows for commercial use. Always review the terms of your financing arrangement to avoid any potential issues.

Question 11

Do I need permission from the lender to use the car as a taxi?

Accepted Answer

In most cases, yes. Many finance agreements include clauses that restrict or regulate the commercial use of the vehicle. Before using your car as a taxi, it's important to get permission from your lender to ensure you don’t breach the terms of your agreement.

Question 12

Do taxi drivers buy their own cars?

Accepted Answer

Yes, many taxi drivers opt to buy their own cars, either outright or through car finance for taxi drivers. This allows them to have full ownership and control over their vehicles, which is often preferred for flexibility and long-term investment.

Question 13

What is the new HMRC law for taxi drivers?

Accepted Answer

The new HMRC law for taxi drivers pertains to tax regulations and requirements, such as income tax, National Insurance contributions, and VAT obligations. From January 2025, taxi drivers will be required to accurately report their earnings to HMRC, maintain detailed records of income and expenses, and adhere to local licensing requirements to ensure compliance and avoid penalties. It's essential for taxi drivers to stay informed about these laws to ensure compliance and avoid potential penalties.

Question 14

How much does it cost to buy a taxi in the UK?

Accepted Answer

The cost of buying a taxi in the UK can vary depending on various factors, including the make and model of the vehicle, its age, mileage, and any additional features or modifications. On average, the cost can range from several thousand to tens of thousands of pounds.

Question 15

Can I own a taxi in the UK?

Accepted Answer

Yes, individuals can own a taxi in the UK. Whether you choose to purchase a taxi outright or obtain it through financing, owning a taxi allows you to operate your own business and provides independence in managing your work schedule and earnings.

Question 16

Do you need a taxi licence in the UK?

Accepted Answer

Yes, in most cases, you need a taxi licence to legally operate a taxi in the UK. This licence, also known as a private hire driver's licence or a hackney carriage licence, is issued by local authorities and typically requires drivers to meet certain criteria, including background checks, medical examinations, and completion of relevant training.

Taxi driver car finance: Your Guide to Getting Behind the Wheel