Tax returns for taxi and private hire drivers.
Uber, Bolt and other private hire and taxi drivers who work for themselves. Platform payments arrive gross, with no tax taken, so the tax bill lands in January and the figure can be a shock.
What to know
Platform payments arrive gross, with no tax taken, so the tax bill lands in January and the figure can be a shock.
Drivers are self-employed, so you report your fares and tips and claim the costs of running the vehicle. We work out the best way to claim vehicle costs and make sure you set the right amount aside.
Costs you can usually claim
- Fuel or charging costs
- Vehicle insurance and licensing fees
- Servicing, repairs and cleaning
- Tolls and business parking
- Phone and platform fees
- Mileage at 45p a mile for the first 10,000 miles, or actual costs, but not both
Authorised and regulated
Is Cheap Tax Returns authorised and regulated? Yes.
Your return is prepared by qualified UK accountants holding qualifications from the leading accountancy bodies: ICAEW, ACCA and AAT. We are also on the ICAEW approved employers list, so you can file with confidence.
Regulated by the professional bodies. Reviewed by qualified accountants. Part of Accotax.
Prepared by accountants you can trust.
In depth
Tax returns for taxi and private hire drivers: what to know
Driving for a living brings vehicle, licence and platform fee questions that most tax guides skip. This is how they work on a Self Assessment return.
Am I self-employed as a taxi or private hire driver?
Most licensed taxi and private hire drivers are self-employed, even when they take bookings through an app. That means you file a Self Assessment return, pay Income Tax and Class 4 National Insurance on your profit, and keep your own records.
Which driving costs can I claim?
You can claim licence and badge fees, vehicle insurance, fuel, servicing, MOT, cleaning, congestion charges and tolls on business trips, a dash cam, phone costs and platform commission. Parking and speeding fines are not allowable. Personal use of the car must be excluded.
How do vehicle costs work?
You can claim actual running costs with capital allowances, or use simplified mileage of 45p a mile for the first 10,000 business miles and 25p after. Capital allowances are often better for high-mileage drivers who buy or lease a car mainly for work.
When do I need to register for VAT?
If your taxable turnover exceeds £90,000 in 12 months you must register for VAT. How platform fees and fares are treated depends on how you contract with the passenger, so check before you reach the limit.
Why use Cheap Tax Returns for taxi and private hire drivers?
Cheap Tax Returns is part of Accotax, a UK accountancy practice. Our fees are fixed and quoted in writing before we start, the return is prepared by an accountant and checked before filing, and we work online with clients anywhere in the UK. Our team holds ICAEW, ACCA and AAT credentials. For a free quote call 0203 4411 258 or email [email protected].
At a glance
Taxi and private hire at a glance
Claimable costs
- Licence, badge and vehicle plating fees
- Insurance, fuel and servicing
- Congestion charges and tolls on trips
- Platform commission and phone costs
Records to keep
- Platform income statements
- Fuel and repair receipts
- A daily or weekly mileage log
- Lease or finance agreements
Common mistakes
- Claiming fines and penalty notices
- Not splitting private and business use
- Missing income from several platforms
- Ignoring payments on account
Questions, answered.
You must register if your taxable turnover goes over the VAT threshold, currently £90,000 in any 12-month period.
You can use either simplified mileage rates or actual vehicle costs for the same vehicle, but not both.
Yes. Licence, badge, vehicle licensing and compliance test fees are allowable business expenses.
Report the total income from every platform and cash fares, then deduct allowable costs. Platform statements make this straightforward.
You pay Class 4 National Insurance on profits above £12,570, which is 6% up to £50,270 and 2% above that.
Know your price before we start.
- Fixed fee confirmed in writing before any work begins
- ICAEW, ACCA and AAT-qualified accountants
- Filed with HMRC and confirmed, so you have proof
- A real person on the phone: 0203 4411 258