Re: what is the best thing to do
As a general rule, maximising interest payments in order to get tax relief is not a great idea. Sure - you do get some tax relief, but this only covers
part of the interest that you have paid out, so you are still out of pocket for the remainder of the interest. If you have opportunities to reduce to overall interest paid, you will be better off.
we wont be lodging as much in our bank account if we do it his way and therefore wont be paying as much tax in years to come .
In general, this is not correct. Your tax liability is not defined by how much you lodge to your account. Your tax liability is defined by your income, less your allowable expenses, multiplied by the relevant tax rate (That is a bit of an over-simplification, but you get the idea).
Your mortgage repayments on your residence are definitely not an allowable expense, so they have no impact on your tax liability. [There is the matter of mortgage interest relief, but this is fairly small, and really isn't worth bringing into the equation].
I'm not sure if your car repayments (or possibly the interest part of your repayments) are considered an allowable expense for a hackney driver. Other posters may be able to confirm or deny this for you.
I'm also a bit confused by the accountant's suggestion to take out a new loan. It makes no financial sense to have 35k on deposit (earning may 1%-2% per annum) while taking out a new loan of 35k at 8%-9% per annum interest (if it is a personal loan) or 3%-4% per annum for a remortgage/secured loan.
If you are struggling to meet your loan repayments, the usual approach would be to renegotiate the repayments on your lowest interest loan (your mortgage). You need to find out why he is suggesting taking out a new loan instead of renegotiating the existing mortgage. The cynic in me is wondering if he will be getting some kind of commission on the new loan. Is he steering you towards any particular provider for thsi loan?