I spend £16780.72 a year to drive a London taxi!

[@TomtheTaxiDriver]

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[@mrkiplingreallywasanexceed8311]

I think for people just to see you in principle, break down your various expenses - never mind those specific to you, or even generally to a cab driver - is a great little life lesson which I think is criminally lacking from young people's education. I think I have heard that some schools have started financial sense and budgeting but most people's first taste of managing their own money is Uni. Having gone to all the effort of explaining in detail your various expenses - all of which, incidentally, I felt were entirely legitimate (so, for example although your grand total was 505.98, you came back to 440 or something after you removed stuff like pension but, as with the holiday, these are things that most folks will get as part of their job) - I'm therefore not really sure where your £16780 in the title came from? I went through your film twice and objectively could not fault, as already said, any of the things included so I think it's absolutely right that you stick with your original grand total. And quite simply 52 × 505.98 is just over £26 300 per annum. You must be the only person on KZbin not to click bait your title! In fact, the figure you provide rather seems to UNDERestimate the actual total by not far away from 10k. In fact I feel you might have been a bit generous on the consumables (tyres, wiper blades etc) even if we assume (although you don't state it) that the cab servicing is included in your £250 a week. This is the first time I have seen your channel so haven't yet looked - but although you started to touch on it (mention was made if groceries and also, when calculating the cost of earning your holidays, you did mention you would still have to buy holiday) what another video might seek to do is to explain about how you pay yourself. Without divulging either what your take is - or what you pay yourself specifically, I think another aspect of being self employed, you need to know what your own personal expenses are, in order to know what you need to pay yourself. When I did my business course, one of the important factors was of course working out one's personal expenses for that purpose so a video outlining the rent/mortgage which, just as surely as the cab payments, has to be paid. You mentioned the groceries but there's also gas, electricity and Council tax. There is the holiday you mentioned - and again I truly feel two weeks in the sun is not a luxury but a necessity. The other 2 weeks of your 4 annual, you might stay at home seeing relatives, or DIY that sort of thing. Speaking of, any repairs, decoration, furnishings, gardening items would need to be factored in. An allowance for clothing and shoes. Mobile phone, landline and Internet. Most folk have at least a couple of subscriptions like Sky, Amazon Prime or Netflix - and many people do a small charitable donation. This is obviously highly subjective but many have a budget for "going out/socialising" - and I know people around the world ate still starving yet it doesn't seem unreasonable to enjoy the occasional meal out or trip to the pub. When I did the exercise, I put "gifts" in that section - little things for nephews and the like. Whether it's a gym or other sports/hobbies, there may need to be a budget for that. All in all it's more complex than people realise and more expensive! Did you mention paying your National Insurance or "stamp"? Likewise you could - or at least your accountant might - write a lot of your expenditures against tax, but you still have to be paid out the business earnings. If you haven't done a feature on that other side of it, I think that would be equally useful for anyone self employed or thinking about becoming self employed....

[@simonwhitlock9189]

With all those costs I am amazed that anyone drives a cab, I have a friend here in Australia who owns a cab and the only way to keep on top of the game is to run it 24/7, absolute lunacy.

[@Besty66]

I was in Berlin a few years ago and got talking to a taxi driver. He told me their expenses are shocking and it's not uncommon for a taxi to be owned by 2 or 3 people and they all take their turn driving it to pay the bills.

[@richardmoore2627]

Are you THE Simon Whitlock 🎯

[@simonwhitlock9189]

@@richardmoore2627 no, thankfully.

[@Agman.P]

You actually inspired me to take a cab from Kentish Town to Old Street tonight. Been hooked on your videos for about a month now. Quicker journey on the tube but preferred the comfort of a black cab and the fact I know I am supporting someone like you. Top man Tom. Keeping it real

[@TomtheTaxiDriver]

Thank you so much Alex. Yes some journeys are more efficient on tube such as Northern line or Victoria line. Other areas of London are joke and cab will win all the time. There’s other benefits too like being able to change your destination, chat on the phone if you need to catch up on work, or just have your own private space. Thanks again 👍🏻

[@Besty66]

@@TomtheTaxiDriver This is exactly why I'm about to quit my job and become a taxi driver (not London). I'm fed up working for someone else and being told what to do by some dimwit who couldn't do it themselves if their life depended on it. I want the freedom to work when I want and to stop when I want. I'm not going into it blindly, I know what my expenses are likely to be and what hours I need to do to cover it.

[@kassimbabika]

And this isn't just taxis - just remember that many service providers have expenses too so, paying a plumber to fix your plumbing or a mechanic to fix your car or an IT Technician to fix your PC or bookkeeper to manage your books or a cleaner to clean your home etc etc doesn't mean they take home that amount. More people need to remember this. Thanks for sharing

[@TomtheTaxiDriver]

Definitely! Lots of specialised professionals have to get extra qualifications and accreditations just to continue operating in a field they know inside out 👍🏻 Thank you for sharing

[@alfamonk]

@@buckrussel3808 not really. we all have crazy expenses to pay. I pay council taxes of 2.5K/year...for less cops, poor road-maintenance. etc etc. meanwhile my wages have stayed the same for the last 5 years. We're all being ripped off.

[@Arrica101]

@@alfamonk Yea, but Tom is paying all those taxes too

[@toxophillus72]

Hi Tom, just spotted your YT vids, I drove a London Taxi for 42 yrs , almost all of that time as a mush.[Owner driver for the uniniated].I retired in 2002 in my late 60s. So I had a lot of experience of cab running, I used to change my Taxi for a new one every 3 or 4 yrs, one thing you dont seem to allow for in this video is down time. I was 24 yrs old when I bought my first Taxi, a 5 yr old. I fairly quickly realised that working my running costs out over 52 weeks a year didn't work out because of holidays + cab break downs + normal maintenence+ illness, even as a young fit guy I still used to get Flu and other ailments that kept me off work. So even after buying my first new Taxi in 1965 I found that if I worked my expenses/running costs out over a 45 week year it worked out by the end of the year. Used to get a 3yr warranty back in the day hence the regular changing, the problem was the older a Taxi got the more it broke down. To be honest with you don't envy you drivers in todays London, back in the 60s could park just off Oxford St and go shopping (no meters or Wardens) I could park in Liecester Sq and go to the pictures, how good was that. Things started to go down hill in the 70s but improved in the 80s and 90s. Anyway Tom " be lucky" as the saying goes.

[@Alastair_]

I had the same thing working as a ski/snowboard instructor for about 10 years. People would look at the £20 an hour jobs and think "Oh you guys must get loads of money" but after we buy all our equipment (even with the discounts), pay for our licences, training courses, first aid etc it simply wasn't financially feasible for me. I now work easy, minimum wage jobs and have far more throw away money than I ever had before.

[@sandersson2813]

I wanted to be a snowboard instructor, but then I realised I love snowboarding and didn't want to spend blue bird days teaching noobs how to get down a blue slope. In my opinion it's better to work in a field that isn't your hobby, then you don't get sick of your hobby and working means you have something to look forward to, not to mention ski/snowboard instructor jobs pay is laughably bad.

[@TherealPatrickBatemanOfficial]

@@sandersson2813 calm down giga chad...

[@smitz7847]

I Can relate to this. I charge £20 an hour as a gardener and people think (its good money) isn’t it? I Drive from job to jobs diesel prices 🙈 less feasible for me now. Looking elsewhere outgoings are through the roof.

[@FelineFurKin]

Very interesting. I didn’t know half of this, though my dad’s cabs were about £30k back then and he upgraded/part-exchanged, I guess, each year until he kept the last TX1 which had a great run of 16 years. He made enough, but not masses, and he liked being his own boss. He did the knowledge in 18 months in his late 20s, was a cabbie for nearly 50 years, kept going until age 76, and been gone for 7 now so as soon as this popped up on my homepage, you had my heart, so hi 👋🏻

[@TomtheTaxiDriver]

Thanks for sharing!

[@washx2k755]

Rip sorry to hear

[@janeeccleston9196]

My husband was a cab driver in Salford for 33 years -He worked 60 plus hours a week -He now works 30 hours a week in an office and takes home more money-whilst working half the hours .He also gets 28 payed days off a year .

[@newsflash4382]

He must have been a very lazy taxi driver all his life

[@joco2826]

@@newsflash4382 you must have been a very silly c unt all your life.

[@newsflash4382]

@@joco2826 Laziness is no excuse for not being able to make money. 🤣🤣🤣🤣

[@highbury1972]

In 2005 a TX2 was £32K brand new and about £40K with finance. In 2021 The TXE is £61K and £70k with finance. Back in 2005 the cab overheads were lower but higher annual overhaul costs at TfL. Everything was cash back then and now everything or 90% of most fares are on card. Cabbies earned double back then of what they earn now. Sadly Boris as mayor sunk the cab trade. 90% of everyone I knew on The KOL has left the trade. Stay healthy and lucky Tom.

[@khoyrulislam]

Cabbies earned double when they took cash? Hmm interesting 🤔

[@anthonybelton-ford3124]

@@khoyrulislam Two different sentences, you made the choice to link them

[@schrodingerscat1863]

@@khoyrulislam No their overheads were much lower compared to turnover meaning they made twice the profit.

[@dannythurbin9046]

In 2023 a txe is £76,000 and roughly just under £100,000 over 7 years it's crazy

[@alexnada8397]

Well said mate. Go for a trade. They are using people here. They allow to invest and then screw you over by overheads . Glad you left

[@shandon147]

I need to get every punter that says “you make loads of money” to watch this.

[@TomtheTaxiDriver]

Hahah definitely Martin! Still get people who think I can do the one in, one out thing all day! Always sods law if I'm telling the punter that it's been bad in the cab, that when I drop them off there's someone waiting for me haha!

[@hellopsp180]

They make loads and spend loads ;)

[@Gogettor]

Init guvnor?

[@Gogettor]

@@TomtheTaxiDriver fuck ‘em

[@olikirk3106]

Not sure how I have managed to get onto this channel, but I'm hooked!

[@dirkdidler8072]

As a driver for the last 30 years driving a cab around London is a total waist of time which is why I’ve now left to drive a bus with many other taxi drivers doing the same, nothing to do with covid.

[@aceface8353]

Correct

[@edr5364]

What a great video, Tom. I drive all day in London so know all too well the toll it can take, both physically and financially. Keep it up, brother!

[@sussexmartlet]

No idea how or why your videos were recommended to me, but really interesting and a great watch thank you

[@janperenboom7014]

Maybe been watching some gueguesr videos lately? That's how I was recommended

[@sussexmartlet]

@@janperenboom7014 dont even know what that is!

[@robhardie6687]

So to have a standard of living similar to what I had as just a bus driver, you'd have to take in about £900 per week in fares, or £22.50 per hour for a 40 hour week. Plus of course the years of training compared to about 6 weeks to be passed out as a bus driver. I can see why the traffic gets you so anxious!

[@darrylfloyd7371]

I’ve had a green badge since 1989. But since COVID hit I’ve been driving a London bus. As a bus driver I never have to worry about earning, as long as I do the hours I get paid. But I really miss choosing my own hours and being my own boss. Hopefully I’ll be back in a cab soon so I can stop those 7 day 70 hour stints starting at stupid o’clock and get back to regular hours. Bus drivers will always have my sympathy, it’s not an easy life.

[@collin6238]

@@darrylfloyd7371 hi Darryl fellow bus driver here in my company you can put your name down to do early middle or late shifts instead of mixed rota me I prefer lates

[@TomtheTaxiDriver]

big respect for all the bus drivers! Putting up with all those characters! must be a mad house!

[@aceface8353]

Yes that’s about the long an short of it plus your health suffers badly , it actually cost me my family too

[@bdeithrick]

@@darrylfloyd7371 that’s the Main thing. Your not owed when your a cabbie

[@Gingerharry2011]

Fascinated to see the breakdown. As an employed person, I guess the key thing you have is the flexibility. I do earn a regular amount, but I am on their schedule. I work irregular shifts and so it’s hard to maintain any sort of hobbies or social life. I love the idea of a move to London and doing the knowledge, this really gives a sobering (tho not off putting) reality check.

[@londonirish11]

Just found your channel and have subscribed.I appreciate your honesty and clear breakdown of the cost of being a cabbie in London. For various reasons I took the option of working for local government, I have to say our pension scheme is far better than what you have. Over the years I’ve taken Black Cabs in London and have an interest in them and public transport in London. Keep the videos coming hope you have profitable days and no troublesome clients!

[@vjary8142]

So, you need to turnover 26.3K a year before you earn a penny for yourself and then from whatever you earn you still have your own household and personal expenses to deduct. Yes, it's not as easy as people think. Keep on producing uploads as they are generally interesting to watch and allow others to see how things are out there.

[@UKTopGun]

What’s misleading here is nearly everything he is listing here can be written off as a tax deductible. And the money they earn they don’t tell the taxman so relatively it’s lucrative.

[@vjary8142]

I don't know what can and cannot "be written off as tax deductible" but what I worked out was how much he has to turn over before he earns anything. As for your comment about " the money they earn they don’t tell the taxman", I hope you can evidence that statement as everything is recorded either through credit card receipts or on the meter, so No I can't see how they don't tell the taxman what they earn. The taxman anyway takes most interest in cash businesses and will know through experience what a taxi driver is likely to earn in an average year and hence the amount of taxes they are due to pay. The last thing anybody wants is a tax investigation and a tax inspector going through every minute detail of your income and expenditure.

[@UKTopGun]

@@vjary8142 I’d say it’s relatively well known cabbies don’t pay tax for decades - there’s many articles on the matter on how little black cab drivers report to HMRC. Perhaps it’s changing as they can no longer use their old trick of the “broken card machine” but a lot will still take cash only and even with credit card payments you can still change accounts it goes into. Do you think he tells the taxman of his “tips”? It’s generally a thing of being self employed to only say you earnt £16k - it’s not exclusive to black cab drivers. Also his title says £16k, but as you say when you x the number he said by 52 it’s £26k. It wouldn’t be a sustainable profession if fees were actually £26k a year. We have a few black cabs outside near us (we live in London) and they genuinely are parked on the driveways of the nicest houses.

[@Padderrss]

@@UKTopGun I think you’re over exaggerating the card machine antics a bit now. I imagine nearly all business is on card (80%) for cabbies. I for one never carry cash with me. But yeah they definitely still swindle the tax books, but I think it’s got harder for them to do it

[@ofark2764]

Gangster controlled system for gansters.

[@jom1439]

this applies to so many self employed people (and even more so if you have employess yourself) and so many have to answer exactly the same questions. I have no idea how people still cant understand that it costs money to make it.

[@tobyskinner94]

If you don't own the taxi, but you are paying it off. How do ads work on the side of taxi's. Who gets paid for them and how much do you get?

[@courts6969]

I remember him saying in another video “2,500” for a full wrap advertisement

[@TomtheTaxiDriver]

I get paid for them as effectively it is my taxi that I am paying for. But wouldn't be seen dead with an advert on the side of my cab haha!

[@MarkkkyPants]

I’m private hire in Weymouth, a seaside town and when I started with the firm I’m with I was stunned by how much drivers made. I understood why taxi drivers earned so much the moment I started going through licensing - so many outgoings and overheads. When I started my books with income I was amazed at how well I’d done, when I started adding expenses I understood very quickly why I still had little in my pocket. I’m still way better off than in my last job thankfully but when your income drops nearly 40% by the season and those big car bills hit…. Oooooof! It’s no wonder there’s a shortage of drivers since covid.

[@RyoHazuki1]

Really insightful stuff. I'm a self-employed web dev so overheads are low, but keeping a steady flow of clients is the challenge. I now appreciate the struggles of being a cabbie!

[@stevejudd7777]

I had a cabbie mate and he cab shared with his father. Dad would drive an 8 hour shift from 6 am - until around 3pm then he would jump straight in it and drive until around 10 pm. That way they cab was really earning its keep.

[@rangers7694]

Games gone unless you're freehold and have very low outgoings. The average gross takings (even pre covid) for a full weeks work,not mental hours and not slacking have hardly changed in last 20 years, meanwhile taxi expenses have gone up 2.5 fold in that time.

[@aceface8353]

Yup

[@christopherbiggs4019]

I hope you like your taxi. I was one of the Electrical Engineers who worked on the HV side of things. It was a great project to be involved with.

[@annabelholland]

That's more than how much I rent for my house for around £900 a month (£10,800 a year)

[@TomtheTaxiDriver]

Yea it’s way more than my rent and living costs in London. It’s almost like a mortgage, although I can’t live in the thing haha!

[@ahmedyousuf966]

Your house doesn't earn for you. In the video you are not told how much he makes gross you would be shocked believe me.

[@torahemetkiruv8807]

@@ahmedyousuf966 it will be around £1500 a week if he does reasonable hours.

[@d3hk4y81]

Hi Tom, What costs for; electric charging, Car washing, Cab Valeting. Do you have to pay for entering 15-minutes zones? Keep up the great videos.

[@cudden22]

Sheesh, that's a whole lot of expenses! My dad was self employed for over 40 years, watching him stress about the bottom line throughout my childhood was enough to put me off the whole self employed thing! Thanks for sharing, no wonder it made your eyes water!

[@TomtheTaxiDriver]

Oh wow! Thanks for sharing Tom. Yes I guess from the outside looking in, being self employed is incredibly daunting. I suppose its a case of starting small and building incrementally over time 😊

[@matthewsmith2787]

Self employment isn’t all that bad, you can choose your own hours etc. Like everything there is downsides

[@mfurmyr]

Great video. I can see that we have much of the same expenses in Oslo Norway. The big difference is when it comes to cars, paying the taxi company and electricity. In Norway you can buy whatever car you want as long it is road legal. I prefer to change car every 2-3 years and always have a guaranty on the car. That will cost me about 6000 pounds every year. Now I will replace my Kia e-Niro with a Hyundai Ioniq 5. My taxi company is expensive, but it is also the best and have the best reputation. It cost me around 7000 pound every year. Electricity is inexpensive in Norway. In 2020 I drove 43 000 km (26 700 miles) and it cost me 600 pounds.

[@TomtheTaxiDriver]

Wow Martin, thanks again for your insights into this. You should make some videos for taxi driving in Norway, would be nice to get taxi drivers all around the world doing this 😊

[@tobyskinner94]

Good morning, I keep looking out for you when out and about! It is like a needle in a haystack!

[@TomtheTaxiDriver]

Morning Toby! It will happen one day! Just be sure to give me a shout, always love seeing people about

[@Aaron-ws6sx]

@@TomtheTaxiDriver Drove past you Sunday morning on way to work up near bounds green, gave a little beep but you were talking away lol

[@ColininThailand]

Retirement, bad news mate it’s now 66, the time you get to it it’s gonna be 75.

[@TomtheTaxiDriver]

I imagine so! As people live longer the length of support the government have to give gets longer. I think that's why it's so important that people get a grasp of personal pensions early on!

[@robhardie6687]

I'm pretty sure there's not going to be the money for it in 40-50 years, so I'm putting a lot into company pension and S&S ISA, hopefully that way I can eat in retirement 🙄

[@Mongoose118]

Nah 67

[@gregw4303]

It’s something people might do too late in life. I would love to think I’ll have a nice pension to walk into, but to afford that I’d have to not eat or have a car for the next 30 years 🤣

[@seananderson6958]

Great video You need to put much more into your SIPP though

[@seberous]

Really interesting tom. Loved the style of that. Hopefully more people see this and better understand how much you have to spend. I personally, despite all of these costs, indent to spend most of my working life self employed in some form or another if I can. I hate the idea of working for someone else's gain and only earning a salary, because at the end of the day, all the hard work I put in is for the benefit of the boss. Whereas working for myself, I've got the drive to do well, as I will see the benefits of it myself. Loving the videos mate, all the best.

[@TomtheTaxiDriver]

Very much so Seberous, whilst these are quite expensive costs, there are other benefits like you mention. Thanks again 😊

[@BeHappyWithUrLife]

An incredible insight into the real world of TXE driving. Thanks for this very informative and well produced video mate. Keep them coming.

[@TomtheTaxiDriver]

Thanks Luke, will do! 😊

[@markpunt9638]

Actually - you’ve made me realise why some cabbie Zaino actually share a vehicle - so one will use it during the day and another during the night, or one uses it at weekends and the other during the week. This way, there are actually halving the capital and running costs aren’t they

[@ishty777]

I've been a cabbie for 10 years currently got just under 17 months left before emissions kick mycab off the road. I am going 100 % the uber route with a prius. Less overheads, less headache. Would have considered the etxe if my council allowed us to drive if for 15 years but 10 years is too short for a sound return. Especially as I live in a smaller, less busy city to London.

[@droidmarsh]

I wish you done this video before I got out (about 6 months before you I reckon). Refreshingly honest and extremely useful for all those wannabes out there. The pandemic forced my hand and I finally handed my TXE back last Feb. I work from home now in front of a computer, and boy, do I miss the streets of London! Be Lucky Tom.

[@douglasmilford3145]

Im a retired private hire operator from Kent, and, although my outgoings were not as much (no LEZ, not so much congestion charge etc), much of what you are saying applied then ( rtrd2015) and people assumed I could do "freebies" or "mates rates". Did it for about 15 years, and I can't say I miss waiting outside some club in London or Brighton on a Saturday night/Sunday morning.

[@mumihp]

Thanks Tom, you have given me a better understanding what it takes to run a cab. I was run of those thinking, cabs are expensive but when you factor in the cost and also as you said, money to break even, cost + living cost + and earnings, a lot goes on to keep the cab running. My next question is, with all the expenses before you make a profit, is it worth it? Knowing what you know now, would have chosen a alternative career. Anyway, keep up the videos, I am remote working from home so on my 2nd monitor, I am watching you drive around London.

[@GrumpySalmon]

Great channel mate. Never expected that I will find a taxi such an interesting topic. But I am hooked to your channel.

[@ericgraham7026]

Hi Tom, thanks for yet another absolutely clear and precise video. Yes, the costs are sobering! I chose not to drive a truck as an owner driver due to the frightening costs of operating a Tractive Unit or Prime Mover as they are called. I am retired now and drive ex London Transport vehicle’s, like the Routemaster and RF, on weddings, private hires and tours etc for a company. I am technically self employed but have very few overheads. Keep up the good fight,!

[@TomtheTaxiDriver]

Thanks for sharing Eric, sounds like you have the right balance to keeping your overheads low 😊

[@R-Tap]

Just found this channel, hello from a Dublin Cab driver. Informative and real. London black cab running costs (excluding fuel) are not far off Dublin taxi running costs. EDIT2: You omitted capital depreciation, breakdowns, the odd accident and sickness. Subscribed.

[@TomtheTaxiDriver]

Indeed, it's almost dizzying thinking about all the eventualities we have to cover. Thanks for subscribing Rob 😊

[@R-Tap]

@The Stigg Yawn 😴, change the record, haters always hate. Life is too short to go in on people because of their job!

[@soundseeker63]

I absolutely could not deal with the stress of knowing I have to turn over £500 a week just to pay off my expenses thats CRAZY! It's hard to imagine why anyone would want to go into this career in London knowing how much cash you have to stump up just to get started...but anyone who does has my respect! This is clearly not the easy money maker people (myself included) always imagine it to be!

[@schrodingerscat1863]

That is what running a business is all about, same for any business. Driving a cab is actually pretty low overheads compared to many businesses.

[@soundseeker63]

@@schrodingerscat1863 If you compare to a bricks-and-mortar business in central London than maybe but compared to other driving based jobs it it crazy high.

[@schrodingerscat1863]

@@soundseeker63 It's expensive compared to other driving jobs but the rates are much higher than other driving based jobs.

[@ijaznaimat7396]

His minum earning is 1600 pound so you don't need yo worry

[@paulmcgreevy3011]

He covers his expenses in a couple of days

[@greencandletraction]

Enjoy your videos Tom 👍🏻 If it helps any with perspective: I manage and run HGVs for small operators, owner drivers like yourself in many cases, and we have to find your weekly cost to cover us for a single day, 7 days per week. As for a day off? Roughly £280 per day to stand the truck up and not send it to work. It's all relative of course but the numbers make your head spin when you take a step back to look at it. Keep doing what you do, and all the best to you 🤙🏻

[@jackludo738]

Hope things are getting back to normal. My dad left the trade after spending 20 years driving a taxi, the past year was the last straw for him. turns out being employed for £11 an hour is giving him similar earnings and less stress.

[@jackludo738]

@@Yourballix well done replying to an old post referring to the pandemic - a time which was tough for many industries.

[@RichMcc]

@@Yourballix you sound like a great son . Of you look at the date of the original post it was as we were coming out of Covid . So yes the vision was done during COVID . You also went on the attack rather than a discussion . So again shows you really don't have a clue. Or don't understand the costs involved in running a business legally. Her / his dad could quite easily be the busiest driver on the road. But still 'only' make 11 ish a hour as they only get paid when the wheels are turning .. So rather than attack someone posting their opinion why don't you go and do some self reflection take your head out of your arse . Stop living offa your parents . This vid is full of ppl doing the job who are saying the same thing

[@RichMcc]

@@jackludo738 jack . Yeah it's a expensive trade to be in with all the costs involved . I've never driven a taxi but know ppl who do . But your dad did feed and clothe you all so

[@dmisso42]

Brilliant! It'd be good to see a similar analysis for other professions. Doctors? Architects? Massage Therapists? Garden Maintenance workers? I mow lawns. Business Insurance, consumables like fuel and weed whacker line, seasonal variations, equipment maintenance, tool replacements, income tax are just some of the expenses I need to factor in to my hourly charge.

[@terry651000]

Well done Tom, great to hear the truth at last, I realised this years ago driving a taxi, my friends have left and doing so much better financially and with their health. Wake up and smell the coffee those still working on the cab.

[@Matthew-uc2zv]

Thanks Tom, I own a taxi company here in Australia - I have shared this video as an idea to my drivers of what it costs to run a taxi. While AU dollar is pretty much double what the pound it, its still something thats important to consider

[@TomtheTaxiDriver]

Thanks Matthew, be lucky down there!

[@Matthew-uc2zv]

@@TomtheTaxiDriver you should come over some time, teach some of our competition about knowledge and how to get to places haha

[@Matthew-uc2zv]

I teach our drivers and make them sit local knowledge tests like London cabbies do

[@google754]

You forgot service cost, food cost, parking fines. Also I had my overhaul done and cost me £3000 for repairs 🤕

[@elsutero2]

Believe it or not even people who don’t drive taxis have to eat

[@TomtheTaxiDriver]

Servicing is currently including in my taxi deal, but yes after 3 years I have to pay for that. and of course parking fines, a nice occupational hazard which isn't tax deductible!

[@MrDavid241292]

I know a lorry driver run his own business and do like sub contract work. He makes around 150k a year but after all the expense insurance, fuel , o license , storage , maintenance, tax and list go on. He only take home about 50k. Great video as always. Stay safe

[@TomtheTaxiDriver]

Crazy to think isn't it? Always nice to hear this different perspectives so people can see from the outside looking in.

[@costcofuel3996]

I’m a food delivery driver and I’ve join the gym. Avoided it but I had to. Sitting all day driving round puts a toll on my body. Member health is wealth.

[@notused.]

Good gracious. It's a good job that you have loyal fans on here to generate a bit of supplementary income

[@Transport_Air_Rail_Road]

Thanks Tom for being this open about the costs you have for your business. Your taxi is in really good shape I think and you have done right to get the Electric instead of a Diesel. Just wondering whether your only source of energy for the cab is petrol or you also charge your car when location permits? Always have a safe trip and take care!

[@TomtheTaxiDriver]

Thanks Torsten, yes also run the taxi on electric as it is a much smoother ride, better for long term maintenance and usually cheaper (albeit time consuming to charge). Thanks and see you on the next one 😊

[@transportert41]

This is a brilliant video Tom. Me and my partner sat down doing a spreadsheet on it all and I've only just got out. So not much of clue really so seeing this was a god send. Good man for doing this 👍👍

[@Andyp12]

I can't wait for the lung tax to come in when I visit London. "So you make about 22 breaths per minute (BPM) so slightly above average and you have asthma..ooooo it's gonna cost ya. It'll get you from the far end of Tower Bridge to the Tower of London, but after that you're breathing illegal air on a pair of uninsured lungs mate, best I can do"

[@ajharmiah2692]

Loool

[@MavicJoe]

i am neither a taxi driver nor a Londoner and yet im so glad i found this channel!

[@garyhutchinson2428]

Great video Tom I used to be a London cab driver and was involved in a life changing accident in my cab would be interesting to tell all the cabbies how having an accident which was no fault, impacted my life.

[@ShowRyuKen]

Really enlightening and interesting video! I'm a gamer so got recommended some of your gaming vids but I'm really enjoying your taxi-focused vids too. Great channel, keep up the good work.

[@damianleah6744]

I had similar costs on my transit, with insurance, goods in transit and public libitity, and hire and reward insurance etc. The general public thinks your money just goes in your back pocket. Which I found very annoying. Great vid btw. 👍🏻😎

[@runarandersen878]

When you think taxi is exspensive, this helps to explain it.

[@TomtheTaxiDriver]

Definitely 😊

[@mrme2483]

This applies to alot of couriers in the uk too that get a bit of bad rap, Self employed with van hire or purchase, correct insurance, fuel, and a limited amount of tax breaks due to most expense being fuel rather than consumables

[@daverobertson1419]

Great insight Tom, we have de-regulated the industry here in Victoria, Australia and it has really killed the industry. Not sure what it is like in London with Uber etc.

[@TheMundusvultdecipi]

Same in Switzerland. They de-regulated the industry in the late Nineties and a ton of drivers immediately handed in their notice of termination and tried to start as a self-employed 1 taxi operation. 1-2 years later half of them were already out of business but still there were way too many taxis and in the bigger cities they had these "taxi wars", drivers threatening others, there were assaults because some didn't follow the old unwritten laws. If you talk to an old cabbie these days they're reminiscing about the golden old days when they used to make good money.

[@-DC-]

My father was in the Trade for years when I was growing up the one thing I always promised myself was not to end up driving my own cab, Nothing but hard work and long hours for sometimes a very slim profit I wish anyone well trying to make a living out of it. Super Content dude 👍

[@shakilnasir3829]

I got black cab , I only make 40% for myself and rest goes to expenses and I got TX4

[@ChrisLitton]

Wow, these things have opened my eyes to the struggles of being self employed. Thanks for the upload!

[@jjaa123ful]

Respect the grind bro 🤙

[@TomtheTaxiDriver]

Thanks James 😊

[@dalidaily]

One thing more, my meter price has not been raised by the local authority for 9 years. NINE years!! I actually earn less now than 20 years ago

[@stephenloynes7983]

Same for most self employed jobs , if you put fencing up the materials might be £1000 plus but you'd only take a small amount of labour after materials

[@TheFairway8]

Been driving a London Black Cab for over 25 years. Not worked since March 2020 can't face going back to the trade the way its gone. Especially all these draconian road closures I'd have to do the Knowledge all over again. When I first got out I was shocked how much I could earn, last 5 or 6 years Ive been shocked how little I could earn very sad for a trade I used to truly love. Still got my licence guess never say never. Be lucky Tom

[@jimblack8104]

This man is smart using KZbin as a second passive income. Respect!

[@andrew5485]

Really interesting video Tom. Enjoying your content. You have probably already mentioned but do you live outside London to keep living costs down. If you track your weekly costs including enough to pay your mortgage etc and don't reach this, do you have to work extra days or longer days.

[@TomtheTaxiDriver]

Hey Andrew, Thanks for the comment. I'm currently living in a North London suburb, pros and cons to living inside and outside of London, which I've tried both. Biggest benefit is that I do less miles on the cab, running costs are less, and time/availability of a job is higher (i.e. I can grab a Heathrow pick-up in short notice). With regards to not being able to pay rent/mortgage. I just ensure that my living costs are easily affordable, it limits my choice of housing/luxuries and location, but the best luxury is that if I do have a slack month (or year as this pandemic has shown). I'm not tied to a rental agreement or mortgage that is wayyy beyond my means.

[@archechme]

I'd imagine you have quite a lot of leway now that you produce youtube videos. It's refreshing watching this and seeing how much it costs for you. Clearly it's working out and I'm glad it is.

[@TomtheTaxiDriver]

Thanks!

[@FelixNBR]

Very interesting! Thanks for sharing. Would love to know how much your actual profit approximately for a regular week/month/year.

[@raymondmassey6884]

I know it's harder for you than people think, but spare a thought for Istanbul taxis. A licence costs 250,000 quid, (yes, that's not a typo) just to collect the plate and screw it onto the car! Plus other expenses!

[@BarnabyBear69]

Really didn't expect over £500 a week just for the pleasure of earning a few quid. The real question you didn't answer is what is the average income the cab makes in a week from your big spreadsheet

[@londoncharlieboy]

You would be very hard pushed at the moment to make £150 a day on average! X 6 day week £900 total before overheads…….

[@TomtheTaxiDriver]

Averages haha! Pre or post pandemic?

[@hassanamir387]

So how much did you turn over daily before covid and how about now?

[@deanokelly29]

Heard it’s lot better now up to 400 a shift even more if you lucky

[@acabbie]

Interesting vid mate but you may want to add circa £100 a week tax to that as well as misc costs such as a coffee, lunch etc. It's eye watering what we need to take before earning a penny for ourselves and it's often overlooked by the clock watchers in the back stamping their feet and muttering something about all cabbies being millionaires 🙄

[@TomtheTaxiDriver]

Definitely! Seems odd that some trades people will be seen as “too cheap” if they quote a reasonable amount, while we cabbies will always be “expensive”.

[@bensdream]

I think it's a little misleading to refer to it as an "electric taxi" when it uses petrol - it might be a PHEV, but it's not an electric taxi.

[@oocares]

Yeah, my only surprise with his breakdown was £100+PW on petrol. Thought it would be much less...

[@justjosh11]

@@oocares really? I thought it would be much more. They're heavy old vehicles and PHEVs only have limited battery range, so realistically in a car that is driving around all day, the charge isn't likely to last long unless you have a chance to recharge fairly often. Edit - didn't realise ICE just charges battery, thought it was a "traditional" PHEV. I'll pipe down now

[@richardrichardw9520]

It is an electric taxi as it runs purely on the electric motor the generator only keeps the battery topped up nothing more

[@TomtheTaxiDriver]

Yep, the drive comes from the battery not the generator, hence electric.

[@TomtheTaxiDriver]

By this same assumption, your household electricity isn't electric, as fossil fuels were burnt to create that electricity?

[@garys7828]

I continue to wish you well. Value your honesty and i will always make sure i tip London cabbies from now on😎

[@TomtheTaxiDriver]

Thanks Gary I really appreciate it

[@andalalvar7183]

How do taxi drivers feel about things like the overhaul and extra MOT? - is it a good thing that separates black cabs from PHVs, or is it an unnecessary burden? Also I’m pretty sure the cab orgs lobby on what the rates are - I’ve seen heated arguments over whether it should be increased or not!

[@TomtheTaxiDriver]

PHV's still need the overhaul and additional MOT (I believe). What is astounding is that we work for the same licensing authority, go to the same inspection centres, pay the same fee. YTE we have to have so many more regulations (plate on the back of the cab, signage in the cab, disability aids, turning circle). I personally don't mind the additional MOT, as it is of course a vehicle for private passengers, so to ensure their safety I agree it should be more a regular thing. The overhaul from TfL is also a good system to ensure that cabs are standardised and consistent throughout, however it's a far cry from the days of the met police running taxis. Who apparently would be incredibly pedantic on minor details of the cabs when it came to inspection. Yes on metered rates, you are correct, the unions/orgs have a survey every year that a driver can comment on. But majority of the time we all agree that it should remain the same (not increase), and usually increases marginally in line with inflation.

[@brianmilligan1787]

What about charging battery maintenance wipers tyres brakes ball joints shocks springs petrol oil lubrication air freshers valeting There will be loads you have missed

[@TomtheTaxiDriver]

Warranty. Also covered cleaning

[@andrewricketts]

If you was driving a cab 20 years ago,you would look on this trade in such a different way.

[@dalidaily]

I'm a cabbie in Hinckley. Our rules are slightly diferent. We can use any 4 door car. One m.o.t. per year. Your expenses is double what I turn over each week! Interesting you have to put petrol in your electric taxi!

[@brianquinn6014]

£280 for 4 tyres over 2 years,you must be driving on shagpile carpets.Keep up the good work son.used to make a lot of money years ago but not now.

[@TomtheTaxiDriver]

I suppose lack of miles during the pandemic helped 👍🏻

[@brianquinn6014]

@@TomtheTaxiDriver True

[@pershorefoodbanktrusselltr3632]

My Dad earns on average £55,000 per year before tax and expenses driving a London cab. He owns his own cab outright and has been driving 20 + years. It can be good living once you’ve paid your cab off and have been driving a few years.

[@JoshuaHall72]

Isn’t it risky having your own cab though? When renting you don’t have to worry about damages and stuff like that. When you have your own cab, all those expenses fall under you.

[@constantinople999]

I think the main benefit of being self-employed is also it's biggest curse, you work for yourself. This means when you are working more money is being funneled to you personally. But it also means any day not working becomes framed as money lost. If you take a day off and you don't do much you fixate on the couple of hundred quid you could have earnt that day. This is really different to being an employee as you still feel like you're being paid on your days off and in that sense it can give you better work life balance

[@TomtheTaxiDriver]

Exactly this! It was very hard when I first started out, not to view a day off as "money lost". Eventually I resided in the fact that there will always be some kind of work out here on the streets at all hours of the day, I will always miss out on some kind of opportunity or work, therefore the most sustainable metric is just to stick to regular hours 😊

[@lolyeahright4159]

Black cabs are a con Uber half the price 😂😂😂

[@TomtheTaxiDriver]

Until they surge price. Our meter is set by transport for London. Complain to them if you think it’s too hifh

[@richardrichardw9520]

What a brilliant explanation of the costs of running a Taxi People only see the meter running up and don’t realise the expenses you have to pay out before you even turn a wheel in anger and pick up any customers As you say a lot of people think Cab drivers are minted in your dreams Mate lots of expense for not a lot of returns Be lucky Tom

[@TomtheTaxiDriver]

Indeed, it's not an "oh woe is me video" but just to explain the honest costs. Thanks for tuning in again Richard 😊

[@fanatict5249]

Sorry to let you down but if you didnt know this now you do, call your insurance up and tell them you want to change your normal no claim bonus to business you can do upto 3 years depending on insurance company

[@lesbianalien3435]

Was in the trade for 27 years. Changed jobs 2 years ago and its the best decision ive ever made. The days of making money in that job have long since gone.

[@sidj3018]

what job did you change to if you dont mind me asking?

[@lesbianalien3435]

@@sidj3018 Changed to class 1 hgv. Costs around 4k to do the tests. But a good investment. Im flooded with work. But better than that. No responsibility of running a cab. Just turn up to work turn the key and when im done walk away. No pressure at all. Wish I had done it years ago rather than waste my time in a cab. Thinking all the time work will pick up and get better. When it never did.

[@sidj3018]

@@lesbianalien3435 oh wow, how much money do u get from each job roughly on average?

[@lesbianalien3435]

@@sidj3018 depends on how much i want to work. I find working with agencies is better pay and gives you more freedom. Ive cut my work to only part time now. But my friend on the same company works full time and cleared 54k last year

[@adriandeb2710]

Hi, really good hearing what you say, I am a decorator / furniture sprayer, self employed, the times a customers pays and says I did not know painters earned this amount, they do not see all the other things, £900 a month on a workshop/spray area, over £20,000 in spraying equipment, like you a good insurance in case we have an accident with a valuable item of furniture and the list goes on,, why to they always think self employed peopled are so loaded….

[@simonrobson2293]

Had a friend black cab driver after 25 years he left the trade and got a job as a live in caretaker for a block of flats,hes happy he said he had to earn about 500 pounds a week before any money for himself ,he in the end hated it worked 7 days a week all hours

[@ChocolateTampon]

Those figures are eyewatering. I'm sure the KZbin revenue helps a bit too. Love the channel mate.

[@frankiehoskyn3948]

Good video Tom. The high overheads (mainly due to an overpriced vehicle) are definitely a contributing factor in the decline in the number of London Taxi Knowledge applicants.

[@AlonsoRules]

electric cars are a scam

[@quliux6986]

I own my own hgvs and people say you must be minted, I say I would be if I kept the money costs me 1755.81 a week just to park the truck and look at it, then another 1200 for fuel a week. I've not broke it down like you but I'd say I need about 53k a year just to use it before I earn a penny then I have to pay wages etc. So wouldn't life be great without the overheads people see you quoting 7 to 16k for a job and think wow if only they knew the stress involved.

[@kareemkhayree9836]

i hate it when it came to the mot then you go to the garage and they try to rip you off as well driving a taxi was amazing but expenses and maintenance a headache love your content tom keep up the good work 👍

[@TomtheTaxiDriver]

Thanks for watching Kareem 😊

[@nnniiiaaallllll]

Pensions and Holidays are the things that catch the self employed out, I've been there myself! It seems nice when you're taking home a nice little wedge, but then when you compare it to that 6-10% the employed get towards their pensions, tax and NI and then the few weeks you're 'meant' to take a year for holiday it suddenly ain't as kushty as it first seemed. That being said, when you've got your head around it and know your baselines to cover costs and then cover the living wage it can be very liberating (says the guy who went back to a PAYE wage as he took too many days off with hangovers/ad hoc holidays etc)

[@TomtheTaxiDriver]

Haha! Thanks for the comment! Yes some employee match on the pensions are incredibly generous! Makes me very envious at times 😊

[@priestland1]

New to your channel but absolutely love it. Great insight to the workings of the taxi business. You are a natural and could quite easily be on mainstream TV.

[@TomtheTaxiDriver]

Thank you Peter really appreciate your kind words 😊 always trying to improve with every video 😊

[@UrskogTrolle]

I have one question. Nobody has to tell me any precise numbers but in my own calculations, that £505.98 adds up to just over £101 per day if you work 5 days per week. Plus you need a bit more for other expenses like rent and food etc. So my question is this, would £150-200 per day be a reasonable daily amount to aim for? I also did the numbers and if you drive for 8 hours per day you'll be up to £200 if you make £25 per hour. Again, I'm not asking anybody for any specific numbers, I just wonder if this would be reasonable or if it's too much.

[@mohamedbelbehri153]

Great video Tom . Just a correction or two. You're obliged to work at least 3 months in the year to hold onto your badge - if not ,you may have to take a mini knowledge refresher. Also, mighty cheap overhauls on your cab - usually, at least a thousand pounds if not double that tbh . Could be, its much cheaper on a new electric cab ,but I was paying near 2k a year on my old fairway (which was a late model at the time), annually

[@TomtheTaxiDriver]

I've never heard of the 3 months work obligation. Got plenty of friends who haven't worked in over a year due to the pandemic. As far as I was aware you just have to renew the badge every 3 years. If you don't renew, there's a grace period. If the grace period lapses then yes you have to do a mini knowledge. I say overhaul as the TfL inspection (plating). Not servicing.

[@mohamedbelbehri153]

@@TomtheTaxiDriver Don't know if things have changed, but for sure , you had to do 3 months in a given year. I've been out since 1994 under the old pco - perhaps tfl have changed it ,I suspect its still a regulation

[@mohamedbelbehri153]

@@TomtheTaxiDriver The pandemic allowed for a few exceptions obviously- ie: the plate extension and licensing renewal

[@Zygersaf]

I feel you on the holidays side of things. Recently started as a contractor myself, and all of a sudden a £500 week away to europe effectively turns into £1500...

[@TomtheTaxiDriver]

Thats almost why I opt for weekend breaks, can almost put it into my working week haha!

[@taddlepop3061]

Money is important mate. But you are your own boss and you can work when you want and that's real choice. Love the vids T