Written by the TaxTune Editorial Team·Reviewed by our qualified accountants·Updated June 2026

Why you need to file

When you drive for a platform such as Uber or Bolt, you are not an employee. No tax is taken from your fares before they reach you, so it is your job to tell HMRC what you earned and to pay the tax due. The same applies to traditional private hire and taxi drivers who invoice an operator or collect cash fares.

You report everything through a Self Assessment tax return. If you have not filed before, you must first register for Self Assessment, ideally well before the year end so your account is ready. Once registered, HMRC issues you a Unique Taxpayer Reference that you use every year.

You need to file if your trading income before expenses is more than the trading allowance of £1,000. Almost every active driver passes that threshold within a few weeks, so in practice you will need to register and file. You can read a fuller overview in our guide to Self Assessment.

Declaring your gross fares

This is the part drivers most often get wrong. You declare your gross fares, meaning the full amount the passenger paid, not the amount that landed in your bank account after the platform took its cut. The platform fee is a business cost that you claim separately as an expense.

Your Uber or Bolt summary will usually show gross fares, the service fee or commission, and any tips or incentives. Add up the gross fares plus tips and incentives for the tax year, which runs from 6 April to 5 April. That total is your turnover. Cash fares from street or rank work count too and must be included.

Recording the gross figure and then claiming the fee separately gives exactly the same profit as netting them off, but it is the method HMRC expects and it makes your return easy to check.

Claiming the app fee and mileage

Your two largest deductions are usually the platform fees and your vehicle running costs.

The app or platform fee is fully allowable. Whatever Uber or Bolt charged you in service fees and commission over the year is a business expense. Booking fees charged to you, and any operator licence or radio circuit costs for traditional taxi work, are allowable too.

For your vehicle you choose one of two methods and then stick with it for that vehicle:

  • Mileage method. Claim 45p per business mile for the first 10,000 miles in the tax year, then 25p per mile after that. This single rate is meant to cover fuel, servicing, insurance, repairs and wear and tear, so you cannot also claim those running costs on top.
  • Actual costs method. Add up your real running costs such as fuel, insurance, repairs, servicing, cleaning and a portion of the vehicle cost, then claim the business proportion based on the share of miles driven for work.

The mileage method is simpler and suits most drivers, so keep a log of your business miles. Other allowable costs include your mobile phone, a portion of your data, vehicle cleaning, and dashcam or other equipment. Our guides to expenses for Uber and Bolt drivers and for taxi drivers go through these in detail.

A worked example

Worked example

An Uber driver over a full year

Sara drives for Uber across Greater Manchester. Over the tax year her gross fares plus tips come to £42,000. Uber charged her £10,500 in service fees. She drove 22,000 business miles and uses the mileage method.

Her mileage claim is 10,000 miles at 45p, which is £4,500, plus 12,000 miles at 25p, which is £3,000, giving £7,500. She also claims £600 for her phone, data and car cleaning.

Her profit is £42,000 less £10,500 less £7,500 less £600, which is £23,400. After the personal allowance of £12,570, she pays 20% income tax on £10,830, which is £2,166. Class 4 National Insurance is charged at 6% on profit above the threshold, adding a further amount. She has no tax taken at source during the year, so she sets money aside to pay the bill.

Common mistakes

A few errors come up again and again on driver returns.

  • Declaring net fares. Some drivers enter only the money received after the platform fee and then claim the fee again, double counting the deduction. Always start from gross fares.
  • Mixing mileage and running costs. If you claim the 45p and 25p mileage rates you cannot also claim fuel, insurance and repairs. Pick one method per vehicle.
  • No mileage log. Without a record of business miles, the mileage claim is hard to support if HMRC asks. Keep a simple log or use an app.
  • Forgetting cash fares and tips. All income counts, including tips, incentives and any cash work.
  • Leaving it too late. Drivers often register only days before the deadline and then struggle to file in time.

What you should do

Keep things tidy as you go. Download your monthly Uber or Bolt statements, keep a running total of gross fares, and log your business miles week by week. Set aside a portion of each payout for tax so the January bill is not a shock.

The online filing deadline is 31 January after the end of the tax year, and that is also the date your tax is due. You can estimate your bill with our tax calculators before you file. If you would rather hand the whole thing over, TaxTune can prepare and submit your driver tax return for you. Ready to get going? start your quote.

In short

A clear guide to how private hire and taxi drivers declare their fares and claim expenses on a Self Assessment tax return.

Frequently asked questions

Do I report gross fares or what reached my bank?
You report gross fares, the full amount the passenger paid. The platform fee is then claimed separately as an expense. This gives the correct profit and is the method HMRC expects.
Can I claim both mileage and fuel?
No. If you use the mileage method at 45p and 25p, that rate already covers fuel, insurance, servicing and repairs. You either claim mileage or you claim actual running costs, not both, and you keep the same method for that vehicle.
Is the Uber or Bolt service fee allowable?
Yes. The service fee or commission charged by the platform is a business cost and is fully allowable. Add up the fees shown on your statements for the tax year and deduct them from your gross fares.
When is the tax return due?
The online Self Assessment deadline is 31 January after the end of the tax year, and any tax you owe is due on the same date. Register well in advance so your account is ready in time.
What is the trading allowance?
The trading allowance lets you earn up to £1,000 of trading income before you need to declare it. Most active drivers pass this within weeks, so you will usually need to register and file a return.
Do I pay National Insurance as a driver?
Yes. As a self employed driver you pay Class 4 National Insurance on your profit above the threshold, charged at 6% and then 2% on higher profits, alongside your income tax.