The situation
A self employed private hire driver earned through a ride hailing app. The app showed gross fares, service fees and adjustments, and he was unsure what figure to declare or what he could claim.
The problem
Reporting the gross fares without accounting for app fees and his running costs would have massively overstated his profit and his tax. He was also unclear whether to claim mileage or actual vehicle costs, and how fuel, insurance and licensing fitted in.
What we did
- Established real income. We used the app statements to find his true earnings, net of service fees.
- Chose the best expense method. We compared claiming simplified mileage against actual running costs, and used whichever left him better off.
- Claimed the rest. Insurance, licensing, phone and other allowable costs were all included.
What changed
His declared profit reflected what he actually earned after fees and costs, so his tax was far lower than a gross figure would have produced. He now keeps his app statements and fuel records, ready for each return.
What this shows
App based driving income needs careful handling: report the real earnings after fees, and claim your vehicle costs the most beneficial way, or you will overpay.
Driving through an app?
We work out your real income after fees, claim your vehicle and running costs the best way, and file an accurate return, so you keep more of what you earn.