If you’ve been taxi driving for a couple of years or more, you’ve probably come to realise that there’s a limit on how much you can earn. That limit would of course be how many hours and how many miles you can comfortably and consistently rack up over the course of a week. So you start thinking, ‘what if I were to hire an extra driver or two?’ Thus, a new taxi firm is born. But before you take the plunge and take on additional drivers, there are a few things you need to do and be aware of.
Taxi licenses
Whether your drivers are using their own vehicles or operating taxi vehicles from a fleet that you maintain, if they’re working for you on a full-time basis then there are a few things that you need to do. The first is to make sure that all of your drivers have the correct licenses. If you’re going to be running black cabs and picking up passengers from the street or from taxi ranks, your drivers will need hackney licenses, whereas if you’re going to be taking bookings and picking up from prearranged locations, they’ll need a private hire taxi license.
Insuring additional vehicles
As the owner/ operator of a taxi firm you will of course need to make sure that all of your vehicles and drivers are adequately insured. You might do this individually, or if you’ve got a large number of vehicles you might want to take out a taxi fleet insurance policy. Either way, you must make sure that each of your drivers is covered by specialist taxi insurance and not just ordinary vehicle insurance.
Employer’s and public liability insurance
Once you employ others to work for you, it also becomes a legal requirement for you to hold employer’s liability insurance, which will cover you in the event that one of your taxi drivers suffers injury or loss while working and you are held liable. Not only is this mandatory, it is also good business sense in these increasingly litigious times.
It is also a prudent to opt for public liability insurance, as with a greater number of drivers and vehicles which are not under your direct control, costly accidents are always a possibility.
Wages and right to work
If you are employing someone then you are legally required to pay them the National Minimum Wage. As of 2014/2015, this is £6.50 an hour for anyone aged 21 and over, and £5.13 for workers aged between 18 and 20. You must also check that all of your drivers are legally entitled to work in the UK, by checking that they have a UK/ EU passport or other relevant document. You can find out more about this aspect of hiring additional drivers on the Government’s official website.
Written confirmation and notifying HMRC
You are legally required to provide written details of a job, including any relevant terms and conditions, to anyone who you are employing for a period of a more than a month. In addition to this, you must notify the HMRC that you are now employing people by registering as an employer.
If you require any further assistance with the taxi insurance side of the equation, don’t hesitate to get in touch with Park Insurance.