You're self-employed for tax
Drivers working through ride-hailing apps are generally treated as self-employed for income tax, even where they have some worker rights such as holiday pay. So no tax is deducted from your earnings as you go — you report your profit on a Self Assessment return after the tax year ends and pay income tax and Class 4 National Insurance then.
If you also have a job, that's taxed through PAYE as usual; your driving profit is added on top in your return.
Working out your income
Your driver app provides an annual tax summary after each tax year. It typically shows your gross earnings, the platform's service fee, tips and other adjustments. Use it as the starting point, and keep it with your records.
- Include tips and bonuses or promotions — they're income.
- If you drive for more than one app, add them together.
- Use the tax year (6 April to 5 April), not the calendar year.
Platforms report to HMRC
Under the digital platform reporting rules, platforms collect and report details about the people earning through them to HMRC. GOV.UK notes the low-sales exception for goods sellers doesn't apply to services such as transport — so assume HMRC can see your app earnings.Useful tool
Compare mileage vs the trading allowance and estimate your tax and NI.
Car costs: mileage or actual costs
You can claim your car costs in one of two ways:
| Method | How it works | Good for |
|---|---|---|
| Simplified mileage | 45p a mile for the first 10,000 business miles, 25p after, for 2025/26. GOV.UK shows 55p for the first 10,000 miles from 2026/27 | Most drivers who own their car, simple record-keeping |
| Actual costs | The business share of fuel, insurance, repairs, servicing, road tax and capital allowances on the car | High-cost cars, hired or leased cars, very high mileage |
Once you use the flat rate for a vehicle, GOV.UK says you must keep using it for as long as you use that vehicle for your business. You can't use it if you've already claimed capital allowances on that car.
Other costs you can usually claim
- Private hire driver licence and vehicle licence fees, and operator or platform fees.
- Phone costs (business share) and a phone mount.
- Car cleaning and valeting, and parking, tolls and congestion or clean-air charges for business trips — these can be claimed on top of mileage.
- Medical checks required for your licence.
Fines aren't allowable. See the full allowable expenses checklist.
The £1,000 trading allowance
Instead of claiming expenses, you can deduct a flat £1,000 trading allowance. But you can't claim any other expenses if you do. For anyone driving more than occasionally, car costs alone usually beat £1,000 — the Uber driver calculator compares both for you.
VAT and record-keeping
Most drivers' turnover is well below the VAT registration threshold (£90,000). Keep a mileage log (date, start and end, business miles), receipts for every cost, your app tax summaries and bank statements. Keep records for at least five years after the 31 January filing deadline.
Filing your return
- Register as self-employed by 5 October after your first tax year driving.
- After 5 April, gather your app tax summaries, mileage log and receipts.
- Fill in the self-employment pages (SA103) with your turnover and expenses.
- File and pay by 31 January. If your bill is £1,000 or more you may also face payments on account.
With TaxGo, you upload your app tax summary and statements and TaxGo reads the figures, asks about mileage and costs, and prepares your return ready to check and submit — £79.