Should I go From Self Employed to Unemployed ?

[TaxiDriver]

For the last couple of years now I've struggled to take a wage out of owning & running a Taxi and a Private Hire vehicle despite working (being on duty not nescessarily driving) upto 12hrs a weekday and 16-18hrs on weekend days

This tax year I shall again be filing a Nil tax return as I didn't break even after paying the bills.

 

Just lately Im getting sick of going out to work all day and going home with takings of as little as £5 - £20 not earnings but takings!!

Im seriously considering chucking it in and selling the cab for whatever I can get as come next May I doubt I'll be able to relicence it due to the cost, that money will take a bit off my debts and in one move will wipe out all the expense.

I suppose it's a degree of pride and stupid pig headed determination thats made me carry on as long as I have, that and owning money on a personal loan and a credit card, I couldnt see any other choice.

 

Now, for a while I have had a repayment arrangement in place with my bank and credit card company (muchly reduced monthly payments) we can't lose out home as we're renting privately (the wife pays rent) So.........If I chuck it, would I be entitled to claim Jobseekers do ya think ?

 

I have reduced my outgoings by taking my 8 seater private hire off the road, I no longer advertise.

 

I have recently taken on some night time phone work for a local breakdown recovery firm, doesn't pay brilliantly but its a bit of extra cash (all recorded) to help pay the taxi bills,

And, (If all goes well) I am starting to do some recovery truck driving and roadside assistance work

Edited September 18, 2013 by TaxiDriver

[HDAV]

Best ask the CAB or Jobcentre but i don't think you can claim for 3 months after winding up but check, sorry to hear of your troubles, I went form self-employed to employed almost a year ago, its a big change but getting paid every month has some real perks.....

[mad1]

Hi TD Im not much help but I hope you get sorted as you and your lad are cracking lads !!

Chin up with whatever happens

Scott

[jasper3]

its never easy to make a decision like that... you have put so much effort into it, yet the money aint coming in.... i have lost over 60% of my work through government cutbacks, so know how you feel...yet i have been lucky with some past investments, thank gawd

 

all i can do is wish you good luck for what ever you decide ..... and hope things turn out well for you

[team tractor]

Self employed joiner.

4 months work ahead.

No money still.

 

People don't understand how we have 4 months work and no money . Simple its spent on workshop ,machines,insuring 2 vans and 2 workshops,public liability ,staff with holiday pay,buying a new van as I wrote off the last one .

Customers think you can wait 3 months for the money .

The amount of stock we have to carry is ridiculous .

 

 

I see your point about giving it up but don't lower yourself to other peoples standards and going on the dole.

I work and I'm gradually falling apart because of it but I'm proud to work

[TaxiDriver]

" I see your point about giving it up but don't lower yourself to other peoples standards and going on the dole.
I work and I'm gradually falling apart because of it but I'm proud to work "

 

 

thats one of the biggest reasons for carrying on this far,

and the reason Im trying to go down the recovery truck driving route, trouble with that has been having to equipe meself with basic tools for roadside assistance jobs

Edited September 18, 2013 by TaxiDriver

[SneakyD]

^{Have you looked into working tax credits? You might be entitled them, as a low income worker.}

[Dave-G]

I'm in a similar but not quite so dire position with my private hire car self employment, and yes I survive partly due to a small amount of working tax credits giving me back some of the money I spend in fuel tax and licensing - including the road fund licence in order to do my work. Make no mistake, I feel shame about it but if Government dint take so much from low earners I might manage not to claim any back. The only people now making useful money out of taxi driving are the bosses of the firm, fuel companies and the insurance industry. I'm not complaining about my lot - just saying that cab drivers having it good is by-gone thing. I have two lung diseases affecting my breathing capacity and a dodgy hip so can't really do much else.

 

The job used to be a decent earner (in comparison) but there are now so many people being recruited (I know this for a fact) from Eastern Europe to come here and take minimum wage income for which they will be very grateful. This is done with the 'employers' having full knowledge that they are importing benefit burdens to the state - and when new immigrants are starting a business (self employed) they get a massive grant to buy the cab with - and I can't compete with that. They don't even have to learn the 'knowledge I had to because of GPS logging systems that show the route to the client, take him where he wants, then wait nearby for the next one.

 

I used to replace my car every 15~18 months but have had my current Galaxy for 7 years because I can't afford to replace it. Leicester City Council have now decided no cab will be re-licenced after 11 years old - regardless of condition. It must be replaced with one less than 5 years old that has to pass it's MOT inspection first time - no rectification will be allowed. I will have to retire with the Gal in just over two years time at 64 years old. I had intended to work after retirement age but I can't fund another cab under five years old.

 

I've considered wrapping it several times but am aware that abandoning my job will see me without benefits for some time - and little thereafter. I'm not after charity but the job is long hours for so little real justification that its become an economic vicious circle of spending to earn to spend etc. I consider myself lucky to have built a very small sideline in 501b torch conversions for the shooting community - which I shall be declaring at my end of year trading. That will be a small loss in it's first year by the looks of it - but might provide a small ongoing level of assistance once the lathe and tooling is paid for.

Edited September 19, 2013 by Dave-G

[Scully]

Self employed joiner.

4 months work ahead.

No money still.

 

People don't understand how we have 4 months work and no money . Simple its spent on workshop ,machines,insuring 2 vans and 2 workshops,public liability ,staff with holiday pay,buying a new van as I wrote off the last one .

Customers think you can wait 3 months for the money .

The amount of stock we have to carry is ridiculous .

 

 

I see your point about giving it up but don't lower yourself to other peoples standards and going on the dole.

I work and I'm gradually falling apart because of it but I'm proud to work

I had a similar problem until I altered my invoices with a proviso regarding terms and conditions that everyone pays up within 30 days or interest will be charged on the amount owed as by the terms and conditions of the small businesse act of (can't recall the year!)

You could even state that you require 50% of the price of materials up front and the remainder on the day of completion...no cash flow problems now.

The bad payers are more than usually those who have it,and lots of it,whereas some old dear will chase you down the street waving a cheque as you leave her house.

Edited September 19, 2013 by Scully

[keg]

Sorry to hear Neil, as others have said you are a top chap! I hope something comes along, with your skills, something will.

[fenboy]

Sorry to hear of you woes .

Not sure that chucking it in is a good idea , you will not be able to claim for a few months if you do.

 

Clearly though the business is not working well enough for you to keep it going in its current state .

Stick some real effort into finding a paid full time job and then wind up the taxi work.

 

You say you no longer advertise but surely that is a false economy if you are running your own business ?

 

Good luck with whatever you choose.

[four-wheel-drive]

Just an idea but would it be posable for you to get some sort of driving job perhaps lots of people seem to be doing there shopping from home and having it delivered the money may not be good but but at least it would give you a chance to wind up the taxi business if you are not making anything from it.

[overandunder2012]

if your business isnt working jack it in no point in flogging a dead horse, then hopefully you can move on to greener pastures if you have to sign on for abit so be it

Edited September 19, 2013 by overandunder2012

[clakk]

sorry to hear this .i know what team tractor is on about where i work they do 90 days credit to suppliers and then they have to scream to get their dollars and its plain wrong.also a previous boss when i was building extensions made the customers pay for all materials upfront .b4 we laid a brick and soon as finished pay up no 30 day credit mularkey.hope u find a driving job or somesuch to see u to retirement atb clakk

[KFC]

I packed up my glass engraving/stained glass business because it was too labour intensive to make a profit. I had no shortage of customers but they didn't want to pay the amount of money it was really costing.

Many of my customers were obviously not short of money but insisted on knocking the price down so I packed up.

I'm still self-employed doing other things but I also have a PAYE job for 20 hours a week that helps keep the bills paid. You can do both.

 

The other thing is that I chopped up my credit card, froze the interest and pay £1 a month. I can afford it and it stops the debt becoming statute barred.

 

A business must make a profit. If it doesn't then it means I'm working for the business instead of the business working for me so it is a sensible business decision if I cease trading because I'm not making a living.

[aris]

Sorry to hear about your woes TaxiDriver. I'm curious - what is the cause of the decline in business? I presume that you did make a comfortable living in the past?

 

Is it too much competition, or high costs? I typically use private hire when I go to the airport - and it is not exactly cheap. On my last trip the driver told me he never spends more than 30 quid a day on fuel - this on a journey he charged me 70 pounds for

[rimfire4969]

Sorry to hear this, You and your family are top people. I am guessing you have everything thats on offer like working tax credits?

[team tractor]

I had a similar problem until I altered my invoices with a proviso regarding terms and conditions that everyone pays up within 30 days or interest will be charged on the amount owed as by the terms and conditions of the small businesse act of (can't recall the year!)

You could even state that you require 50% of the price of materials up front and the remainder on the day of completion...no cash flow problems now.

The bad payers are more than usually those who have it,and lots of it,whereas some old dear will chase you down the street waving a cheque as you leave her house.

Normally people pay well and we always get deposits covering the materials but for every ten good customers you always get a bad one :(

[Del T]

Seeing as you enjoy driving and know your local area very well , how about delivering parcels for next or the other online shopping stores. The FIL does it and its 50p a parcel so if you get a round with all deliveries near each other you can make a few quid.

Just a thought for you.

[kent]

Been self employed for years, there have been hard times and luckily many good times. I thought I could stop working and concentrate on other things and capital projects but that has pretty much failed after over spending on other things and rising costs and government cuts leading to more spending. I think many don't understand how hard it is go paye after so many years on your own, my record PAYE work period (after leaving full employment at 21) lasted 18mnths and included two employers when I was in my mid twenties and had tax difficulties and no other option.

 

One should not let a business pull you down, get out there is no shame. If you cleared all your debt and put 20k clear in the bank, could the business work again? it don't sound like it can to me, you are the result of circumstance then. If your current line of work cannot pay do something else, if I was in real fanatical difficulties I should do anything clean toilets etc for bare minimum wage rather than sign on. Live on beans on toast and re-start a new business slowly using as little cash I had. The next challenge for me is to start back making things again (were I started off) I don't want a lot now money wise and I won't spend a lot BUT there are always options if you think outside the box. Do not get into a depressive state, the only mistake you made was perhaps hanging on too long! Call me chicken but if something don't look like its going to work fiscally I dump it real quick. Our country depends on people like you. Without the self employed the only people with jobs would work for the government and the coffers will soon run out.

 

My suggestion to the powers that be is don't give us grants etc. Give us full capital allowances for new start ups to set off against profits over the next five - ten years and we will rebuild the economy. Unlike the lazy layabouts we don't want taxpayers money, handed out by the crooks in Banking that put us here in the first place.

 

The Taxi business will return but I doubt it will be very soon and it might bear a very different face.

[ME]

We have a guy locally that does your kind of work.

 

He is a member of the local rugby club, he is a leading light in the local taxi association and he is involved in many clubs and societies locally. (Round Table being one). He knows every restaurant owner and publican in the town. He is a well known "face" around town. He doesn't join these things to "sell" his services, he just gets work because everyone knows him. He doesn't offer cheap "mates rates" and I always give him a tip on top because I like the personal service and the knowledge that his driving isn't going to kill me. (I also hate cabbie chat)

 

You never hear him moaning or see him parked up, he is the "go to" man for a cab in Billericay.

 

I remember that in the past we spoke about a company local to you. I ended up getting in a taxi recently driven by the "your cabbie" man (my father booked it). That guy is the same, he is all over Facebook, websites and knows loads of people that I know. He is also a member of some clubs and societies.

 

EDIT: in fact the Your Cabbie guy was advertising on FB for licenced drivers recently, why not have a chat with him?

 

 

With my experience above it strikes me that the busy people in the taxi business are the ones that put themselves out there and know a lot of people. Also by tapping into local older people you are less likely to get the teenage pukers and run off's.

 

 

Please take this post in the positive and helpful manner that it is meant. My business is suffering some ups and downs at the moment, so I empathize with your position.

Edited September 19, 2013 by ME

[Will Poon]

Hi taxi driver , running your own business regardless what it is , is very hard especially in today's economic climate . By the sounds of it you've tried your best and it's not worked out for some time now so cut your losses speak to your accountant and move on, it's soul destroying when your giving it 100% and you reap no rewards from it.

Your in your 40's according to your profile so it's not too late to venture into different things as your still young

Best of luck what you decide to do

[amateur]

.......... running your own business regardless what it is , is very hard especially in today's economic climate .......

 

Depends upon the business - I'm doing better now than I've ever done

[TaxiDriver]

Guys,

thank you very much for the positive and supportive comments/suggestions.

 

I've had to give up the online advertising and directory listings ie 118 118 in an effort to try to reduce financial outgoings, ( Of course this has an effect on the number of times the phone rings.)

 

When I started there was 125 taxis and mine was 126, Now we are upto 179.

Increasingly these are being bought up or put on the road by members of the local Turkish, Asian or Indian community, the local council issues Drivers Badges to members of these communities, many of whom often don't know the area, some of whom barely speak English, but all probably have better lawyers than me, poised ready to play the racial discrimination card.

 

Our council too has a policy on vehicle ages,

A New licence application has to be for a purpose built Taxi ie traditional london Cab or Modern van Taxi conversion, all of these are £20K+

Once a vehicle is 10yrs old it has to be replaced, and the replacement can be no more than 4yrs old.

 

As I've mentioned I have been trying to get into some other driving work and hope this will go well, although I suspect the hours and being fairly manual work might nearly kill me initially lol

[HDAV]

 

Our council too has a policy on vehicle ages,

A New licence application has to be for a purpose built Taxi ie traditional london Cab or Modern van Taxi conversion, all of these are £20K+

Once a vehicle is 10yrs old it has to be replaced, and the replacement can be no more than 4yrs old.

 

As I've mentioned I have been trying to get into some other driving work and hope this will go well, although I suspect the hours and being fairly manual work might nearly kill me initially lol

 

 

http://www.ebay.co.uk/itm/TAXI-FIAT-DOBLO-NEW-SHAPE-HIGHROOF-WHEELCHAIR-TAXI-/370846639419

 

Even with Vat under £20k......if its time to get out its time to get out, online advertising for cabs,i have never bothered, have to admit i use the ones with memorable numbers 777777 555555 333333 etc but i dont use them that often.

 

Whatever you choose do good luck but get some advice.

https://www.gov.uk/browse/working/finding-job