Written by Hammad Rasool MAAT·AAT licensed accountant·Updated November 2026

Enter your figures above and the result appears here.

Budget 2026 update: The 55p rate for the first 10,000 business miles is now permanent, and from 6 April 2027 the rate above 10,000 miles rises from 25p to 35p. See everything that changed.

How the calculator works

It follows the same steps HMRC uses for a self employed private hire driver in the 2026/27 tax year (6 April 2026 to 5 April 2027):

  1. Income: your total fares and tips, before the app takes its cut.
  2. App fees: the service fee is a business cost, so it comes off.
  3. Mileage: 55p a mile for the first 10,000 business miles and 25p a mile after that.
  4. Tax: Income Tax at 20%, 40% or 45% above the £12,570 Personal Allowance, plus Class 4 National Insurance at 6% on profits between £12,570 and £50,270 and 2% above.
New for 2026/27: the flat rate for the first 10,000 business miles went up from 45p to 55p from 6 April 2026. On 10,000 miles that is an extra £1,000 of tax free allowance compared with last year.

What the mileage rate covers

The flat rate is instead of the actual running costs of the car. If you use it, you cannot also claim fuel, electricity for charging, insurance, repairs, servicing, MOT or road tax. You can still claim other travel costs such as parking and tolls on top. Once you use the flat rate for a vehicle, you must keep using it for as long as you use that vehicle for the business.

The alternative is to claim actual costs, with a business use percentage. For drivers who rent their car or have very high running costs, actual costs can give a better answer. We check both for every driver.

What the calculator leaves out

  • Scotland: Scottish Income Tax rates are different.
  • Actual cost claims: car rental, finance interest and capital allowances.
  • Class 2 National Insurance: for 2026/27 you do not pay it if your profits are £7,105 or more, because it is treated as paid. Below that, you can choose to pay £3.65 a week to protect your State Pension record.
  • Student loans and the High Income Child Benefit Charge: both are collected through the tax return and would add to the bill.
Example

Kamran takes £42,000 in fares, pays £10,500 in app fees and drives 22,000 business miles. His mileage allowance is £5,500 plus £3,000, so £8,500. With £900 of other costs his profit is £22,100. Income Tax is £1,906 and Class 4 National Insurance is £572, a total of £2,478, or about £52 for each of his 48 working weeks.

Common questions

What mileage rate can Uber drivers claim in 2026/27?
55p a mile for the first 10,000 business miles and 25p a mile after that, if you use the flat rate method. Before 6 April 2026 the first 10,000 miles were at 45p.
Can I claim fuel as well as the mileage rate?
No. The flat rate covers the running costs of the car, including fuel, insurance, repairs and servicing. Parking and tolls can be claimed on top.
Is the Uber service fee tax deductible?
Yes. You are taxed on your profit, and the fee the app keeps is a cost of earning the fares.
Do Uber drivers pay National Insurance?
Yes. Self employed drivers pay Class 4 National Insurance at 6% on profits between £12,570 and £50,270 and 2% above that for 2026/27.
When do I pay the tax?
Tax for 2026/27 is due by 31 January 2028, usually with payments on account on 31 January and 31 July.

Checked against GOV.UK on 10 November 2026: Simplified expenses: vehicles, Income Tax rates, Self employed National Insurance rates.

About the author

Hammad Rasool MAAT is an AAT licensed accountant based in Bolton. TaxTune Accountants looks after sole traders, landlords, contractors and limited companies in Bolton, Wigan, Bury, Salford, Oldham, Stockport and Manchester, and online across the UK.