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London cabbies - how much do they earn?  
London cabbies - how much do they earn? - Marky Mark
While up in London for the weekend we used cabs a fair bit (SWMBO wouldn't go on a tube!) & I wondered how much they earn in a year (sad I know!!) It seemed even short journeys equated to £5 fares & I started to think what the net profit was likely to be in a year. I realise they have running costs (servicing, repairs, mot, licences, fuel, tax, insurance etc) but wondered what % overheads were as a % of total costs?

Anyone have any idea of typical London cab earnings/outgoings?

MM

Tags: technical issues used cars valuations

London cabbies - how much do they earn? - R75
Are you asking what gets reported to the tax man or what they really earn?? The two are somewhat different - as with all cash businesses!!!!
London cabbies - how much do they earn? - patently
You could always ask - that way you can experience the special service provided for anyone suspected of being a tax inspector!
London cabbies - how much do they earn? - Big Bad Dave
I remember reading an interview with a London cabbie about 5 years ago and he said he earned about 50k. Can?t remember the source or what the interview was about. 50k is all that stuck in my mind.
London cabbies - how much do they earn? - Armitage Shanks {p}
£50K. Gross or nett?
London cabbies - how much do they earn? - big_chrisser
£50K. Gross or nett?


Guardian says otherwise.

Around 23k gross working 40-50 hrs a week. but would i be right in thinking that cabbies can work whatever hours they want, they're not regulated in this way. and so could acheive 50k by doing e.g. 6 x 12 hr days ?

Hope this link is OK Mods as it's non-Telegraph. Delete if applicable.

tinyurl.com/e26pz
London cabbies - how much do they earn? - Altea Ego
It depends how they operate. Drivers on a radio net and hiring the cab dont earn much. Freelance owner drivers make much more.
London cabbies - how much do they earn? - Big Bad Dave
I was chatting to a cabbie in New York a few years back and he was telling me that there is a strict limit on the number of taxi licences in the city. There aren?t very many and when one comes becomes available they go for something like a quarter of a million dollars or even more. This particular driver had gone in with his two brothers, got a mortgage to pay for it and worked in 8-hour shifts, the taxi itself was never off the road.

Again that?s just a figure that has become inprinted in my mind, I?d be interested to know if anyone else has a more accurate one.
London cabbies - how much do they earn? - NowWheels
Re BBD's post on cost of taxi licenses: in Leeds, they change hands for about £45,000. The council is talking of issuing many more licenses, and when I talked to a few cabbies there I sugested that this was a good idea, cos it wouldn't bankrupt new entrants to the profession.

Their reaction is that a) the proceeds of sale of the licence are their pension fund; b) if you issue lottsa new licenses, there'll be too many cabbies for anyone to make a decent living.
London cabbies - how much do they earn? - spikeyhead {p}
Their reaction is that a) the proceeds of sale of the
licence are their pension fund; b) if you issue lottsa new
licenses, there'll be too many cabbies for anyone to make a
decent living.


I'm glad I live in Luton, which has issued a decent number of taxi and minicab licences. Prices are 50% less than neighbouring Dinstable and Dunstable makes Leighton Buzzard look cheap. Because the prices are sensible, plenty of people use cabs, so they have a much higher turnover than those in neighbouring towns.
--
I read often, only post occasionally
London cabbies - how much do they earn? - drbe
if you issue lottsa
new
>> licenses, there'll be too many cabbies for anyone to make
a
>> decent living.
>>
I'm glad I live in Luton, which has issued a decent
number of taxi and minicab licences. Prices are 50% less than
neighbouring Dinstable and Dunstable makes Leighton Buzzard look cheap. Because the
prices are sensible, plenty of people use cabs, so they have
a much higher turnover than those in neighbouring towns.
--


This whole question is the subject of much debate in the industry.

Different local councils - often adjoining - have different policies on this matter. Some issue unlimited numbers of licences, others strictly control the numbers.

The idea seems to be
A: restrict the numbers and there will always be enough work for everyone.
B: issue as many licences as there is demand for - you don't restrict the number of plumbers or window cleaners - so why restrict the number of cabbies.

I am in a rather restricted section of the private hire trade, so I am not directly involved, but I support B.

Some people argue that the streets will be flooded, but there are laws of economics controlling these things. If the number of licences is restricted, there will be "un-met demand" at certain times, which could let unlicensed and uninsured cabs on the road.
London cabbies - how much do they earn? - BazzaBear {P}
I seem to remember there was an episode of Quantum Leap which explored the same idea. I don't think the city sells them any more, the previous owner gets to sell them on if they wish - hence (with their rarity) the unregulated prices.
London cabbies - how much do they earn? - BazzaBear {P}
Ref: my last post - who says you can't learn anything from TV shows?
London cabbies - how much do they earn? - barney100

I chatted to a NY cabbie and apparently there are are heavy costs to get a cab on the streets Licenses, insurance etc. They don't like long distance trips as they are likely to come back to the city empty and therefore earning nothing. Best fares are quite short so a new fare can be picked up quickly, full cab as much as possible makes sense I suppose.

London cabbies - how much do they earn? - Cheeky Chappy
ok lets get this straight.

you seem to be getting mixed up between a LONDON CABBIE and a mini cab driver.
All london cabbies, thats london licensed taxi drivers are freelance,some own taxis, they are known as mushers and some rent taxis, they are known as jorneymen but they are all freelance,that is they earn and generate their own oncome and pay their dues,if they work long hours they get paid more than working short hours, some day are good and some are bad and earnings are usually 25-30k with unsociable hours .
London cabbies - how much do they earn? - Mapmaker
Not as much as you might imagine. I remember reading an article in a professional tax magazine entitled (something like) 'What to do if the Taxman says your cabbie isn't earning enough.'

Realistically, how many people tip? - very few.

The view was that annual income wasn't a lot of money, a ssimilar amount to that suggested by the Guardian.

London cabbies - how much do they earn? - patently
Not as much as you might imagine. I remember reading
an article in a professional tax magazine entitled...


They never pick the really interesting publications on 'Have I Got News For You', do they?

;-)
London cabbies - how much do they earn? - Cardew
There was a TV programme some years ago about some young lads on their mopeds learning 'the knowledge'. The programme hinted at huge earnings when qualified.

It is obviously not in any cabbies interest to reveal his true earnings. Firstly as we might tip less if we knew just how much they can make, and the taxman might want a bigger slice.

Obviously earnings are almost directly proportional to the time you spend on the road. However I have been told by someone who knows about these things that £1,500 a week gross is easily achievable.

Every so often the Taxman 'does a number' on a driver. Lifestyle, bank accounts, taxi mileage, meters are all examinined. Counter measures are an art!

London cabbies - how much do they earn? - drbe
As with similar occupations, the trick is to keep moving/earning. If you are sat with the meter off, it's no good.

A London cabbie I used to live near, went to work at 7am and came home when he had taken £200, sometimes that was early afternoon, sometimes it was evening.

London cabbies - how much do they earn? - blue_haddock
One summer when i was a student i worked for a mortgage provider doing admin and general office stuff. We had a taxi driver apply for a re-mortgage on his house, if you looked at the figures on his accounts the mortgage was something like 8 times his income but he had been paying the mortgage for many years.

It was looked at by a senior underwriter who decided that as he had been paying the mortgage without problems (on a higher rate as well) for years that we could do the mortgage as it was obvious what was actually happening.
London cabbies - how much do they earn? - Mapmaker
>It was looked at by a senior underwriter who decided that as he had been paying the mortgage without problems (on a higher rate as well) for years that we could do the mortgage as it was obvious what was actually happening.

Happily nowadays if he came to that conclusion he'd have to do something about money laundering/the Proceeds of Crime Act. (Tax evasion is unlawful. Therefore money left over as a result of it is 'proceeds of crime'.)
London cabbies - how much do they earn? - tack
I live in the heart of cabbie'land dahn sarf from oop norf.

By the "heart of cabbie land", I mean Redbridge..... the off shore capital of Israel.

I can tell you that you NEVER see a poor cabbie. Most of the time you will find them (when they are not actually working the sherbert dab)in the travel agents booking their next Cruise.

My brother drives a sherbert, he works the hours he likes and is browner than Mr Brown from Brown Town from h'all the 'olidays 'e h'as.

"ere, know who I 'ad in the back of me cab last night"?........
London cabbies - how much do they earn? - Cardew
I can tell you that you NEVER see a poor cabbie.
Most of the time you will find them (when they
are not actually working the sherbert dab)in the travel agents booking
their next Cruise.
My brother drives a sherbert, he works the hours he likes
and is browner than Mr Brown from Brown Town from h'all
the 'olidays 'e h'as.
"ere, know who I 'ad in the back of me cab
last night"?........


Part of the'tax counter measures' I spoke about is to ensure that Cruises etc are not paid for by the cabbie himself. Surprising how many cabbies have friends who treat them to a cruise every so often.

He wouldn't get away now with a mortgage that his declared income could not support.
London cabbies - how much do they earn? - AlastairW
He would if he 'self certified' the mortgage. Might have to pay a higher interest rate, but that would be paid for by the underdeclared income.
London cabbies - how much do they earn? - Cardew
He would if he 'self certified' the mortgage. Might have to
pay a higher interest rate, but that would be paid for
by the underdeclared income.

>>

I think you missed my point.

The difficulty is not obtaining a mortgage that your declared income cannot support.

It is when you are investigated by the taxman. The investigation examines all aspects of your expenditure.
London cabbies - how much do they earn? - Mapmaker
And AlastairW is an ex-taxman iirc...
London cabbies - how much do they earn? - AlastairW
And AlastairW is an ex-taxman iirc...


Correct. Gamekeeper turned poacher you could say. Even now, when the client is paying me, I listen with Revenue tuned ears, so you get a good idea if they are telling the truth. Then report them all to NCIS, as required by law.
London cabbies - how much do they earn? - drbe
>> >> Then report them all to NCIS as required by law.


Yes, NCIS is a good programme on TV on Saturday evening.

I had the impression that they were all sailors or marines - not tax inspectors ? hmm?
London cabbies - how much do they earn? - drbe
I live in the heart of cabbie'land dahn sarf from oop
norf.
I can tell you that you NEVER see a poor cabbie.
Most of the time you will find them (when they
are not actually working the sherbert dab)in the travel agents booking
their next Cruise.
My brother drives a sherbert, he works the hours he likes
and is browner than Mr Brown from Brown Town from h'all
the 'olidays 'e h'as.
"ere, know who I 'ad in the back of me cab
last night"?........


How nice to read a proper post - nicely typed - good grammer - no slang................. ;-)
London cabbies - how much do they earn? - NowWheels
How nice to read a proper post - nicely typed -
good grammer - no slang................. ;-)


innit
London cabbies - how much do they earn? - Cardew
An 18 Month old thread resurrected by a London cabbie who joined today; I wonder why???

His Profile:
"London Cabbie Since 1991 Divorced 2 grown kids. What Rattles me is Why is it a problem when taxi drivers earn good money,they work hard why not. theres a lot of jobs that earn a lot,have you ever used a solisitor for a divorse.££££££££"

£25-30k eh, well I suppose the Tax man might read this forum!
London cabbies - how much do they earn? - Stuartli
I'm fortunate to live in a town where there are a number of taxi firms, plus black cabs, all of which deliver an excellent computer controlled service, clean and generally well maintained vehicles and surprisingly reasonable charges.

In fact, if there are two or more of you it's normally cheaper to go door to door using such taxis rather than public transport.
- - - - - - - - - - - - - - - - - - - - -
What\'s for you won\'t pass you by
London cabbies - how much do they earn? - kingbillnick

a lot less then footballers, pop stars and bankers... probably pay more tax per pound earned as well... no holiday or sick pay. you could always walk the short journey and save £5... most taxi drivers will tell you the way when asked! p.s. i'm not a cab driver but i'm happy to use them when i want! p.p.s. thinking about becoming one!! if the money is good enough!

London cabbies - how much do they earn? - jamie745

My father was a taxi driver for more than a decade. The pay wasnt golden but it was at least flexible (if you needed extra money you could pick up extra work, a luxury a 9to5er hasnt got) but it wasnt the worst job in the world.

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