Uber Driver Tax Guide UK

    Complete guide to tax claims, deductions & expenses for UK Uber drivers. Learn what you can claim and save £1,000+ yearly.

    What Can Uber Drivers Claim on Taxes?

    As a self-employed Uber driver in the UK, you can claim various business expenses to reduce your taxable income:

    Mileage & Vehicle Costs

    • Business mileage: 45p per mile (first 10,000 miles), 25p thereafter
    • Vehicle insurance: Business use portion
    • MOT, servicing & repairs: Business portion
    • Vehicle hire/lease payments: If applicable
    • Parking & tolls: When working

    Other Business Expenses

    • Uber service fees: Commission paid to Uber
    • Phone bills: Business use portion
    • Cleaning supplies: Car cleaning for passengers
    • Equipment: Phone mount, dash cam, sat nav
    • Accountancy fees: Tax preparation costs

    Important: Business Use Only

    You can only claim the business-use portion of expenses. For example, if you use your phone 60% for Uber and 40% personal, you can claim 60% of the bill. Keep detailed records!

    Do Uber Drivers Pay National Insurance?

    Yes! As a self-employed Uber driver, you pay two types of National Insurance:

    Class 2 National Insurance

    Rate: £3.45 per week (2024/25 tax year)

    When you pay: If your profits are £12,570 or more per year

    Paid through Self Assessment. No separate payments needed.

    Class 4 National Insurance

    Rate: 9% on profits between £12,570 and £50,270

    Additional rate: 2% on profits above £50,270

    Also paid through Self Assessment as part of your tax bill.

    Example: If you earn £30,000 in Uber fares and have £8,000 in expenses, your profit is £22,000. Your NI would be approximately: £179 (Class 2) + £850 (Class 4) = £1,029 per year.

    Filing Your Uber Driver Tax Return

    Key Deadlines

    • 5th October: Register for Self Assessment (if starting as new driver)
    • 31st January: Online tax return deadline (for previous tax year ending 5th April)
    • 31st January & 31st July: Payment deadlines if you pay tax in advance (Payments on Account)

    What You Need to File

    Income Records

    • • Uber earnings statements
    • • Weekly/monthly trip summaries
    • • Bank statements showing deposits

    Expense Records

    • • Mileage logs (HMRC-compliant)
    • • Receipts for all expenses
    • • Vehicle expense records

    Mileage Rate vs Actual Expenses: Which is Better?

    Simplified Mileage Rate

    Simpler record-keeping
    Better for high-mileage drivers
    Covers fuel, insurance, servicing

    Best for: Most Uber drivers

    If you drive 15,000+ business miles yearly

    Actual Expenses

    Potentially higher deductions
    Can claim depreciation
    More complex records needed

    Best for: Lower mileage + expensive car

    If you drive less than 10,000 business miles

    Track Your Uber Earnings & Expenses Automatically

    MoneyMiles makes tax filing easy for Uber drivers. Automatic mileage tracking, expense management, and HMRC-ready reports.

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