Allowable Expenses for UK Taxi & Private Hire Drivers
As a self-employed taxi or private hire driver (including Uber, Bolt, and FreeNow), every legitimate business expense you claim reduces your taxable profit—meaning you pay less Income Tax and National Insurance.
Simplified Mileage vs Actual Vehicle Expenses: Which is Better?
HMRC gives self-employed drivers two methods for claiming motor vehicle expenses:
- Simplified Mileage Method: Claim 45p per business mile for the first 10,000 miles in the tax year, and 25p per mile thereafter. This covers all vehicle costs (fuel, insurance, repairs, depreciation) in a single rate.
- Actual Expenses Method: Track your actual fuel, insurance, repairs, MOT, servicing, vehicle finance interest, and claim Capital Allowances on the vehicle purchase price. If you use the car for personal driving, you must apportion costs according to business mileage percentage.
Checklist of Key Driver Expenses
- Hire & Reward insurance and public liability insurance.
- Operator service commissions and booking fees.
- Council badge fees, medical assessments, and DBS checks.
- Mobile phone bills (business proportion) and charging accessories.
- Vehicle cleaning, valet costs, and passenger refreshments.