Self assessment for Uber drivers can feel confusing. You drive long hours, fuel and insurance costs keep climbing, and then January arrives with a tax return you are not sure how to complete. The good news is that private hire drivers can claim a wide range of expenses, and getting them right can make a big difference to your tax bill.
Uxbridge and Hillingdon are home to thousands of private hire, Uber, Bolt, Deliveroo, Just Eat and Uber Eats drivers, many working the busy Heathrow airport routes. At NS Accounting, we support drivers every day. This guide explains how self assessment for Uber drivers works, what you can claim, and why filing early protects your income and your licence.
Are Uber Drivers Self Employed?
For tax purposes, most Uber and private hire drivers are treated as self employed sole traders. Uber does not deduct Income Tax or National Insurance from your earnings, so you are responsible for reporting your income and paying tax through Self Assessment.
If your self employed income was more than £1,000 in the 2025/26 tax year (6 April 2025 to 5 April 2026), you need to register for Self Assessment and file a return by 31 January 2027. That is the starting point of self assessment for Uber drivers.
HMRC Can Now See Your Platform Earnings
Since 1 January 2024, digital platforms such as Uber, Bolt and Deliveroo must report details of their sellers’ and drivers’ earnings directly to HMRC. This means HMRC already has a record of what the platforms paid you. If your tax return does not match, you are far more likely to receive a letter or an enquiry. Accurate self assessment for Uber drivers has never been more important.
This is one of the most important reasons to have your return prepared properly. Our accountants for Uber and delivery drivers reconcile your platform statements with your bank account before anything is submitted.
What Income Must Uber Drivers Declare?
When it comes to self assessment for Uber drivers, you must report your full earnings from every platform, not just the amount that lands in your bank. That includes:
- Gross fares from Uber, Bolt, FreeNow and other apps
- Tips and bonuses or incentive payments
- Cash fares from private bookings
- Delivery income from Uber Eats, Deliveroo, Just Eat or Amazon Flex
- Any other self employed work
Uber’s service fee and commission are then claimed as an expense.
Allowable Expenses for Uber and Private Hire Drivers
This is where self assessment for Uber drivers really matters. Every genuine business cost you claim reduces your taxable profit.
Running Costs
- Uber service fees and commission
- Private hire driver and vehicle licence fees, including TfL fees
- Medical examinations and DBS checks needed for your licence
- Topographical and English language test costs
- Mobile phone and data used for the app
- Car cleaning and valeting
- Parking fees and tolls (not fines)
- Congestion Charge and ULEZ charges while working
- Accountancy fees
Vehicle Costs: Mileage or Actual Costs
You have two ways to claim your car costs, and choosing the right one is important. It is the biggest decision in self assessment for Uber drivers.
Option 1: Simplified mileage. You claim 45p per business mile for the first 10,000 miles and 25p per mile after that. This covers fuel, insurance, repairs, servicing and depreciation. You still claim parking and tolls separately.
Option 2: Actual costs. You claim the business share of fuel, private hire insurance, servicing, repairs, tyres, MOT, road tax, car finance interest or lease payments, and capital allowances on the vehicle itself.
For drivers covering very high mileage in a fuel efficient or electric car, mileage can be very generous. For drivers with expensive private hire insurance, a new car or high repair bills, actual costs can work out better. Once you choose a method for a particular vehicle, you generally have to stay with it for as long as you use that vehicle, so it is worth getting advice first. You can read more on HMRC’s simplified expenses guidance.
Buying an Electric Car
If you buy a brand new, zero emission car for your private hire work and claim actual costs, you may be able to claim 100% first year allowance on the business share of the cost. With many Uxbridge drivers switching to electric vehicles to meet ULEZ and TfL rules, this can produce a significant tax saving. It is one of the most valuable reliefs in self assessment for Uber drivers today.
How Much Tax Do Uber Drivers Pay?
A key part of self assessment for Uber drivers is understanding the tax rates. Once your expenses are deducted, your profit is added to any other income you have. For 2025/26:
- The first £12,570 is usually tax free under your personal allowance
- Profit from £12,571 to £50,270 is taxed at 20%
- Profit above £50,270 is taxed at 40%
- Class 4 National Insurance is charged at 6% on profits between £12,570 and £50,270, and 2% above that
Class 2 National Insurance is no longer compulsory for self employed people, though some drivers on low profits choose to pay it voluntarily to protect their State Pension record.
Payments on Account: The January Surprise
Payments on account are the most misunderstood part of self assessment for Uber drivers. If your tax bill is more than £1,000, HMRC will usually ask for payments on account. That means on 31 January 2027 you may pay your 2025/26 tax bill plus 50% of that amount again as an advance towards 2026/27. Many first year drivers are caught out by this. Filing early lets you see the full amount months in advance and plan for it.
Your Licence Depends on Your Tax Status
When you renew a private hire or taxi licence, you must complete an HMRC tax check and give your licensing authority a tax check code. If you are not properly registered for Self Assessment, you cannot get the code and your licence renewal may be delayed. Good self assessment for Uber drivers protects your licence as well as your income.
Do Uber Drivers Need to Register for VAT?
For most people, self assessment for Uber drivers does not involve VAT, as most individual drivers do not reach the VAT registration threshold of £90,000 in taxable turnover. However, drivers who also run other businesses or operate several vehicles should check their position. Our VAT service can review your turnover and confirm whether VAT applies to you.
Making Tax Digital for Drivers
From 6 April 2026, self employed people with gross income above £50,000 must keep digital records and send quarterly updates to HMRC. This is gross takings, before expenses, so many full time private hire drivers will be affected from April 2027 when the threshold drops to £30,000. Our MTD Income Tax accountants make this simple.
Why Drivers in Uxbridge Choose NS Accounting for Self Assessment for Uber Drivers
We understand how private hire and delivery drivers work. When you choose NS Accounting you get:
- A fixed fee agreed upfront
- Reconciliation of your Uber and platform statements
- A clear comparison of mileage versus actual costs
- Easy document sharing by WhatsApp or email
- Year round bookkeeping support so January is never a rush
We help drivers across Uxbridge, Hayes, West Drayton, Hounslow, Southall, Ruislip and the whole Heathrow area.
File Your Driver Tax Return Early
Every week you wait is a week less to gather paperwork, fix problems and plan for your bill. Let our Self Assessment accountants handle your 2025/26 return now, so you can stay on the road. We make self assessment for Uber drivers quick, simple and accurate.
Call: 020 3744 0046
WhatsApp: 07584 660731
Email: info@nsaccounting.co.uk
Contact form: Contact NS Accounting online
