Accountants for Uber, private hire and taxi drivers

Tax for Uber and taxi drivers in plain English

In short: most Uber, private hire and taxi drivers are self-employed. You must register for Self Assessment, keep records of your fares and costs, and file a tax return by 31 January each year. You pay Income Tax and Class 4 National Insurance on your profit, not your total fares.

Expenses drivers can claim

• Vehicle costs: either the simplified mileage rate of 45p a mile for the first 10,000 business miles and 25p after that, or the actual costs of fuel, insurance, repairs, servicing, road tax and finance interest, plus capital allowances on the car. Once you choose a method for a vehicle, you must keep using it for that vehicle.
• Licences and checks: private hire or hackney licence, DBS checks, medicals and badge fees.
• Platform and booking fees: Uber service fees and radio or booking circuit fees.
• Phone and data: the business part of your phone contract.
• Cleaning, parking and tolls while working (not parking fines).

HMRC can see your platform income

Since January 2024, digital platforms such as ride-hailing and delivery apps have to report drivers’ earnings to HMRC each year. If you have not declared all your driving income, it is better to come forward first. See our voluntary tax disclosure help.

Making Tax Digital for drivers

From 6 April 2026, drivers whose self-employed and property income is over £50,000 must keep digital records and send quarterly updates to HMRC. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. Your income is your total fares before costs, so many full-time drivers will be affected. See Making Tax Digital.

Work out your tax

Use our free Uber driver tax calculator or mileage calculator for an estimate.