Do Uber drivers pay tax in the UK?

Yes. Uber drivers are self-employed and must pay Income Tax and National Insurance on profits. You need to register for Self Assessment and file a tax return by 31 January each year.

What expenses can Uber drivers claim?

Uber drivers can claim vehicle costs (mileage at 45p/mile or actual costs), Uber service fees, phone and data, car cleaning, sat nav apps, PCO licence fees, medical exam costs, and a proportion of car insurance.

How much tax do Uber drivers pay?

Tax depends on your profit (fares minus expenses). You pay 0% on the first £12,570 (Personal Allowance), 20% on £12,571-£50,270, and 40% above that. Plus National Insurance at 6% on profits over £12,570.

Does Uber report my earnings to HMRC?

Yes. From 2024, Uber must report driver earnings to HMRC under platform reporting rules. HMRC can compare this to your Self Assessment return, so ensure you report all income accurately.

Uber Driver Tax Guide UK: Expenses, Filing & What You Owe

Uber drivers are self-employed and must pay tax on their earnings. You need to register for Self Assessment, file a tax return by 31 January, and pay Income Tax plus National Insurance on your profits. You can claim expenses including mileage (45p per mile), Uber service fees, phone costs, and vehicle-related expenses.

This guide covers everything UK Uber drivers need to know about tax.

Are Uber Drivers Self-Employed?

Yes. Uber drivers are classified as self-employed for tax purposes. This means:

| Aspect | What It Means | |--------|---------------| | Tax status | Self-employed sole trader | | Tax return | Self Assessment required | | Tax payment | You pay your own tax (not deducted by Uber) | | Expenses | You can claim business costs | | National Insurance | Class 2 and Class 4 |

Note: While a Supreme Court ruling in 2021 granted Uber drivers "worker" status for employment rights (minimum wage, holiday pay), you remain self-employed for tax purposes.

Registering for Self Assessment

If you earn over £1,000 from Uber driving, you must register:

Go to gov.uk/register-for-self-assessment
Select "Self-employed or sole trader"
Describe your business (e.g., "Private hire driver")
Provide personal details
Receive your UTR within 10 working days

Deadline: Register by 5 October following the tax year you started driving.

Learn more: Self Assessment Registration Guide

What Income to Report

Report all fares received through the Uber app:

| Income Type | Report? | |-------------|---------| | Uber fares (passenger pays) | Yes | | Uber tips | Yes | | Surge pricing amounts | Yes | | Promotions/bonuses from Uber | Yes | | Cash tips from passengers | Yes |

Where to Find Your Earnings

Uber provides an annual tax summary:

Open the Uber Driver app
Go to Account → Tax Info → Tax Summary
Download your annual statement

This shows:

Total gross fares
Uber service fee deducted
Net amount paid to you
Number of trips

Important: Report your gross fares as income, then claim the Uber service fee as an expense.

Uber Driver Expenses

Claiming expenses reduces your taxable profit. Common Uber driver expenses:

Vehicle Costs (Choose One Method)

Option A: Mileage (Simplified)

| Miles Per Year | Rate | |----------------|------| | First 10,000 | 45p per mile | | Over 10,000 | 25p per mile |

Claim mileage for:

Miles driven with passengers
Miles driven to pick up passengers
Miles driven between fares (if staying in an area)

NOT claimable:

Commuting from home to first fare
Driving home after last fare
Personal trips

Option B: Actual Costs

If you use actual costs, claim business proportion of:

| Expense | Claimable | |---------|-----------| | Fuel | Business % | | Insurance | Business % | | Repairs and servicing | Business % | | MOT | Business % | | Road tax | Business % | | Breakdown cover | Business % | | Car wash | Business % |

Business proportion = Business miles ÷ Total miles

You cannot use both methods. Choose mileage OR actual costs.

Uber Service Fees

Uber deducts a service fee (typically 25%) from each fare. This is a deductible expense.

Example:

Passenger pays: £20
Uber fee (25%): £5
You receive: £15

Report £20 as income, claim £5 as expense.

Phone and Data

| Expense | Claimable | |---------|-----------| | Phone contract | Business % | | Mobile data | Business % | | Phone mount/holder | Yes (if for driving) | | Phone charger (car) | Yes |

Estimate business use (e.g., 70% if mainly used for Uber).

Licensing and Compliance

| Expense | Claimable | |---------|-----------| | PCO/PHV licence fee | Yes | | DBS check | Yes | | Medical examination | Yes | | DVLA licence check fee | Yes | | Council licence fees | Yes |

Other Allowable Expenses

| Expense | Claimable | |---------|-----------| | Sat nav app subscription | Yes | | Dashcam | Yes | | Car air fresheners | Yes | | Water/snacks for passengers | Yes | | Hi-vis jacket | Yes | | First aid kit | Yes | | Accountant fees | Yes |

Non-Allowable Expenses

| Expense | Why Not Claimable | |---------|-------------------| | Parking/speeding fines | Penalties not allowable | | Clothing (unless uniform) | Personal expense | | Food for yourself | Personal expense | | Home to work travel | Commuting |

Calculating Your Tax

Step 1: Calculate Profit

Profit = Total Fares − Allowable Expenses

Step 2: Apply Tax Rates

Income Tax:

| Band | Rate | |------|------| | £0 – £12,570 | 0% (Personal Allowance) | | £12,571 – £50,270 | 20% | | £50,271 – £125,140 | 40% |

National Insurance:

| Type | Rate | |------|------| | Class 2 | £3.45/week (if profits over £6,725) | | Class 4 | 6% on £12,570 – £50,270 | | Class 4 | 2% above £50,270 |

Example Tax Calculation

Ahmed: Full-Time Uber Driver

| Item | Amount | |------|--------| | Gross fares | £42,000 | | Uber service fees (25%) | −£10,500 | | Mileage (25,000 miles) | −£8,000 | | Phone (70% business) | −£420 | | PCO licence | −£300 | | Other expenses | −£500 | | Taxable Profit | £22,280 |

Tax Calculation:

| Tax | Calculation | Amount | |-----|-------------|--------| | Income Tax | 20% × (£22,280 − £12,570) | £1,942 | | Class 2 NI | £3.45 × 52 | £179 | | Class 4 NI | 6% × £9,710 | £583 | | Total Tax | | £2,704 |

Effective tax rate: 12.1%

Tracking Mileage

Accurate mileage records are essential. Track:

| Field | Example | |-------|---------| | Date | 15 January 2025 | | Start mileage | 45,230 | | End mileage | 45,312 | | Business miles | 82 | | Purpose | Uber driving shift |

Mileage Tracking Options

| Method | Pros | Cons | |--------|------|------| | Paper logbook | Simple, no tech needed | Easy to forget | | Spreadsheet | Easy to total | Manual entry | | Mileage app (MileIQ, etc.) | Automatic tracking | Cost, battery use | | Uber trip data | Shows trip miles | Doesn't include dead miles |

Tip: Use Uber's trip data as a starting point, then add miles driven between fares and to/from first and last pickups.

Part-Time vs Full-Time

Part-Time Uber (Under £1,000)

If your Uber earnings are under £1,000:

The Trading Allowance covers your income
No need to register for Self Assessment
No tax to pay

Part-Time Uber (Over £1,000)

If you have a day job plus Uber:

Register for Self Assessment
Report employment income (from P60)
Report Uber profit separately
Tax calculated on combined income

Example:

Employment income: £30,000 (taxed via PAYE)
Uber profit: £8,000
Total income: £38,000
Additional tax on Uber: £8,000 × 20% = £1,600 (plus NI)

Full-Time Uber

If Uber is your main income:

All profit subject to Income Tax and NI
Consider setting aside 25-30% for tax
Budget for payments on account

HMRC Reporting by Uber

From January 2024, Uber must report driver earnings to HMRC:

| Information Reported | Details | |---------------------|---------| | Your name and address | As registered with Uber | | Total earnings | Gross fares for the year | | Number of trips | Transaction count |

HMRC compares this data to your Self Assessment. Unreported income is likely to be identified.