Common allowable expenses
You are taxed on your profit, which is your income less your allowable costs. The wholly and exclusively rule applies, so a cost is claimable if it is incurred for your driving work, and where something is part personal you claim only the business share.
The single largest expense for most app drivers is the platform service fee and commission. Uber and Bolt take a percentage of each fare before paying you, and that deduction is a genuine business cost. This is why you must work from your gross fares and then deduct the app fee, rather than simply using the amount that landed in your bank, because both the gross figure and the fee belong on your return.
For your vehicle you choose one of two methods and cannot mix them for the same car. The mileage method lets you claim 45p per business mile for the first 10,000 business miles, then 25p after that, and this flat rate covers your fuel, insurance, servicing and wear and tear. Alternatively the actual costs method lets you claim the business share of your real running costs, fuel, insurance, servicing, tax and finance interest, plus capital allowances on the vehicle.
Other allowable costs include cleaning and valeting, the business share of your phone and mobile data, a phone mount or charger, breakdown cover and any business insurance. Your private hire driver licence and any vehicle licensing fees are allowable too.
Expenses people often miss
The biggest missed deduction is the app fee itself. Some drivers only enter the net amount paid into their bank as income and never claim the service fee separately, which is fine arithmetically but only if the gross fares are recorded too. If you start from net takings you may understate both your income and your costs, and a tax check can unpick that quickly.
Phone and data are easy to forget, yet the app, navigation and customer contact all run through your phone, so a fair business proportion is allowable. Cleaning is another, because passengers expect a tidy car. Drivers using actual costs often miss the capital allowances on the vehicle and the interest on car finance.
Booking fees, cancellation related costs passed to you and any equipment such as a dashcam used for safety can also be allowable. Our wider list of allowable expenses is a useful companion to this page.
Risky or commonly challenged expenses
The riskiest area is the vehicle method. You cannot claim 45p a mile and also claim your fuel and insurance, because the mileage rate already includes them. Pick mileage or actual costs for a vehicle and keep to it while you own it.
Mileage itself is closely watched. Only your business miles count, so driving around waiting for a job may count while purely personal trips do not, and your commute style needs honest treatment. Claiming every mile the car covers will not stand up without a log separating business and private journeys.
Everyday clothing is not allowable, only protective clothing or a branded uniform, which rarely applies to app drivers. Meals while you are out working are personal, and parking fines and motoring penalties are never claimable. Treat each of these cautiously.
Records to keep
For app drivers, your records start with the platform. Download your fee and earnings statements from Uber and Bolt for every period, because these show your gross fares, the service fee taken and the net paid to you. Keeping these monthly means your income and your largest cost are both documented and easy to reconcile.
Keep a mileage log that separates business from private journeys, along with receipts and statements for fuel, insurance, servicing, your licence, cleaning and your phone. If you bought the car on finance, keep the agreement for the interest and capital allowances. Matching your bank statements to your app statements each month keeps everything tidy, and our bookkeeping service can do this for you so nothing is missed.
Keep these records for at least 5 years after the 31 January Self Assessment deadline they relate to.
A worked example
The example below shows why gross fares, the app fee and mileage all need to be on the return.
An Uber driver with app fees and mileage
Daniel drove for Uber in 2026/27. His app statements show gross fares of £42,000 for the year, with the platform taking £10,500 in service fees, so £31,500 reached his bank. He covered 18,000 business miles, so under the mileage method he claims 45p for the first 10,000 miles, which is £4,500, plus 25p for the next 8,000 miles, which is £2,000, giving £6,500. He also claims the £10,500 of app fees, plus £900 for phone, cleaning and his licence. His taxable profit is £42,000 less £10,500 less £6,500 less £900, which is £24,100. If Daniel had simply declared the £31,500 paid into his bank and forgotten his mileage and other costs, he would have paid tax on far more than his real profit.
Notice that the app fee and the mileage claim do different jobs and do not overlap, while the gross fares are the correct starting figure for income. Recording all three is what gets the profit right.
Common mistakes
The most common mistake is treating the money paid into your bank as your income and stopping there. That figure is already net of the app fee, so unless you record the gross fares and the fee separately you can misstate your accounts. Mixing the mileage and actual costs methods is another frequent error.
Other slip ups include not downloading the app statements, forgetting the phone and cleaning costs, claiming all mileage as business mileage, and trying to claim everyday clothing or meals. Leaving everything to January, when statements are harder to gather, often leads to underclaiming.
Because the platforms report driver earnings, it is sensible to make sure your return is consistent with your statements, which is far easier when you keep them month by month.
What you should do
Download your Uber and Bolt statements every month, keep a mileage log, and hold on to receipts for fuel, phone, cleaning and your licence. Decide which vehicle method suits you and stay consistent, and always start from your gross fares before deducting the app fee.
If you would rather have it handled accurately, our accountants for taxi and private hire drivers work with app drivers regularly. You can start your quote online and we will agree a fixed fee before we begin.
Uber and Bolt drivers are taxed on their profit, not their gross fares, so the app fee and your running costs both reduce the tax you pay.
Frequently asked questions
Am I taxed on my gross fares or the money in my bank?
You are taxed on your profit. Your income is the gross fares, and the app service fee is a deductible cost, so the two roughly bring you back towards the net figure. The important point is to record both the gross fares and the fee on your return, then deduct your other costs, rather than simply declaring the amount paid into your bank.
Can I claim the Uber or Bolt service fee?
Yes. The percentage Uber or Bolt takes from each fare is a genuine business cost and is allowable in full, provided you record the gross fares as income. Your app statements show exactly how much was taken.
Why do I need to download my app statements?
Your fee and earnings statements show your gross fares, the service fee deducted and the net paid to you. They are the evidence behind your income and your largest expense, so downloading them each period makes your return accurate and easy to support if HMRC asks.
Can I claim mileage and the app fee at the same time?
Yes, because they cover different things. The mileage rate covers your vehicle running costs such as fuel and insurance, while the app fee is the platform commission. What you cannot do is claim the mileage rate and also claim your actual fuel and insurance, since the flat rate already includes them.
What about my phone and data?
The app, navigation and customer contact all run through your phone, so the business proportion of your phone and mobile data is allowable. If you use the phone privately too, claim only the business share.
How long should I keep my records?
Keep your records, including your app statements and mileage log, for at least 5 years after the 31 January Self Assessment deadline they relate to.