You are self-employed
If you drive for Uber, Bolt, Addison Lee, or any licensed private-hire operator, HMRC treats you as self-employed. The platform does not withhold tax. You are responsible for registering with HMRC, filing a Self Assessment every year, and paying income tax plus National Insurance on your profit.
Platforms now share driver earnings with HMRC under the UK's digital-platform reporting rules. HMRC already knows what Uber paid you. Not declaring is not a quiet option any more.
You are taxed on profit, not gross fares
Profit is gross fares received minus allowable expenses in the same tax year.
What you can claim
- Fuel used for work driving.
- Vehicle insurance, specifically the private-hire policy.
- Vehicle maintenance, servicing, MOT, tyres, breakdown cover.
- Vehicle finance interest (not the capital portion of a loan or lease).
- Platform fees and commission (Uber or Bolt's cut).
- Private-hire licence renewal and medical fees.
- Phone bill, business portion only.
- Cleaning and valeting.
Mileage method or actual costs
Mileage method. A flat 45p per business mile for the first 10,000 miles each tax year, then 25p after. This single number covers fuel, insurance, servicing, and depreciation. Record every work trip. Simple and robust.
Actual costs. Add up every running expense for the year and claim the business-use percentage. For drivers who use their car heavily for work with clean records, actual costs often beats the 45p figure, but the paperwork is heavier.
You cannot mix the two methods. Pick one for a given vehicle and stick with it.
Keep these
- Odometer reading at start and end of the tax year.
- A weekly or monthly summary of business miles.
- Fuel receipts if you are using actual costs.
- Platform statements and payouts, every one.
One trap
Your licence renewal and annual medical are tax-deductible. The first-time licence application fee is not. HMRC treats it as the cost of becoming qualified for the work, not the cost of staying qualified.