Item		How calculated
A	Annual average salary	This is taken from Office of National Statistics data for the districts.
B	Average running costs per vehicle	This is taken from the Automobile Association running costs data for a diesel vehicle, adjusted for inflation using ONS RPI Motoring Expenditure Costs Index.   It includes factors such as the capital cost of the vehicle and depreciation as well as the costs of road tax, insurance, breakdown cover, fuel, replacement tyres, service labour costs, replacement parts and the cost of parking and tolls.
C	Additional allowance for insurance	Additional costs are taken into account to recognise higher insurance premiums for hackney carriages.  This is taken from an average of a sample of hackney carriage insurance certificates received in November 2023.  The figure used for the average cost of annual insurance used is £1,150.
D	Annual cost of Hackney Carriage licence	Included in explanation for Item I
E	Annual average mileage	This is the total mileage of the vehicle minus private mileage.  MOT/compliance test data has been used for licensed hackney carriages with typical annual mileage for a private vehicle (from gov.uk) deducted. This gave us a figure of 20,000 miles when rounded to the nearest 100 miles.
F	Dead mileage	This is the distance travelled without a passenger, excluding private mileage. A number of factors prevent an exact calculation of dead mileage. If a taxi takes a customer from A to B and always returns empty to A, the dead mileage will always be half of the total mileage. The factors are: •  taxis do not always return empty to the point of initial departure •  taxis may travel with a customer from point A to point B and then onto point C avoiding any dead mileage •  taxis may be flagged down when empty •  pre-bookings can reduce the amount of dead mileage for example from Point A to the taxi rank and then from the taxi rank to point B • taxis drivers use the vehicle travelling to and from work • some drivers use their taxi for personal journeys HMRC state that any travel to and from the taxi driver’s place of work is not deemed to be dead mileage for the purposes of calculating tax liability. Dead mileage has been set at 45% in line with other local authorities using this model to calculate taxi tariffs.
G	Annual rank fees	There is no charge for hackney carriages to use the council ranks. Whilst there may be a charge for the private rank at Didcot station, the majority of our HCs do not use this and therefore this has not been included.
H	Annual cost of driver’s licence	Included in explanation for Item I
I	Additional policy costs	These are the average annual costs incurred by hackney carriages.  They include the annual hackney carriage licence fee, average vehicle testing fees and annual pro-rata amounts of the driver licence, DBS, and disability awareness and safeguarding training fees that are required under our taxi licensing policy. The figure used here is £616.
J	Typical journey distance	This is the average distance per hackney carriage journey with a fare-paying passenger. Based on comparisons with other geographically similar areas, we have used 2.5 miles as the typical journey distance.
K	Average number of journeys	This is calculated using the annual live mileage and the typical journey distance.