How much tax does an Uber driver pay in the UK?

A UK Uber driver pays Income Tax on profits above the Personal Allowance (£12,570), plus Class 2 and Class 4 National Insurance. Most drivers claim either the simplified mileage rate (45p per mile for the first 10,000 miles) or actual vehicle costs. A driver earning £35,000 after platform fees typically pays around £4,500–£5,500 in tax and NICs.

Can Uber drivers claim mileage on their tax return?

Yes. Self-employed drivers can claim HMRC's Approved Mileage Allowance Payments rate of 45p per mile for the first 10,000 business miles per year, and 25p per mile thereafter. This covers fuel, maintenance, insurance, and depreciation. Alternatively, you can claim actual vehicle costs (fuel, insurance, servicing, MOT, repairs) apportioned by business use percentage. You cannot claim both methods for the same vehicle.

Are Uber service fees tax deductible?

Yes. The commission or service fee that Uber, Deliveroo, Bolt or Just Eat deducts from your fares is a business expense. You should record your gross fares (what the passenger paid) and claim the platform fee as an expense. Alternatively, you can record only the net amount transferred to your bank, but keeping gross records is clearer for HMRC.

Do I need to register for VAT as a delivery driver?

Only if your total turnover exceeds £85,000 in any 12-month period. Most individual drivers earn below this threshold. However, if you operate a fleet or run a delivery business with multiple drivers under your company, you may need to register. Voluntary VAT registration can allow you to reclaim VAT on fuel and vehicle purchases.

UK Gig Driver & Rider Tax Calculator 2026/27

Built for Uber Deliveroo Bolt Just Eat drivers. Calculate your true take-home pay after platform fees, vehicle costs, Income Tax and Class 2/4 NICs. Includes simplified mileage and actual cost methods.

🚗 Your Driving Income

Annual Gross Fares (before platform fees)

Total passenger fares or delivery fees before Uber/Deliveroo take their cut.

Platform Commission / Service Fees

Uber typically takes 20–25%. Deliveroo 10–15%. Enter the total deducted.

Other Taxable Income (PAYE salary, etc.)

If you also have a day job, enter gross salary here.

Vehicle Costs (choose one method)

Use simplified mileage rate

Annual Business Miles

45p/mile for first 10,000 miles, then 25p/mile. Includes all vehicle costs.

Other Expenses

Phone & Data (business %)

Phone lease, data plan, dashcam subscription.

Other (dashcam, PPE, parking, tolls)

📊 Your Tax Breakdown

Annual Take-Home Pay

£0.00

after all tax, NICs and vehicle costs

Note: Based on 2026/27 tax rates. If using actual costs method, ensure you keep fuel receipts, insurance documents, and mileage logs for 5 years. Simplified mileage rate covers all vehicle costs — do not double-claim.

How Gig Drivers Should Handle Tax in the UK

Uber, Deliveroo, Bolt and Just Eat drivers are classified as self-employed independent contractors in the UK. This means you are responsible for your own tax and National Insurance. The platforms do not deduct PAYE — you must register for Self Assessment and pay HMRC directly.

Step 1: Register for Self Assessment

You must register by 5 October after the end of the tax year in which you started driving. The tax year runs 6 April to 5 April. If you started driving in July 2025, register by 5 October 2026. Late registration penalties start at £100.

Step 2: Record Everything

HMRC can ask for proof of any expense you claim. The essentials:

Gross fares: Screenshot your weekly earnings summary from the app.
Platform fees: These are deductible — keep monthly statements.
Mileage log: Date, start location, end location, purpose, miles. A simple notes app works.
Fuel receipts: If using actual costs, photograph every receipt.
Insurance certificate: Must show business use / hire & reward cover.

Step 3: Choose Your Vehicle Cost Method

You have two options, and you cannot switch between them for the same vehicle in the same year:

Method	Best For	Records Needed
Simplified Mileage (45p/25p)	High-mileage drivers with cheap cars	Mileage log only
Actual Costs	Low-mileage drivers with expensive vehicles, EVs, or financed cars	All receipts + mileage log for apportionment

A driver doing 30,000 business miles in a £5,000 used Prius should use simplified mileage: 10,000 × 45p + 20,000 × 25p = £9,500 deduction. Actual costs on that car would be far lower.

A driver doing 8,000 business miles in a £35,000 Tesla on PCP should use actual costs: PCP payments (£6,000/year), insurance (£2,000), servicing (£400), apportioned 80% = £6,720 deduction — far more than 8,000 × 45p = £3,600.

Frequently Asked Questions

Do I need a separate bank account for Uber income?

Not legally, but it is strongly recommended. A dedicated business account (Starling, Monzo, Tide) makes bookkeeping trivial. You can see exactly what came in and went out without sifting through personal transactions. It also looks more professional if HMRC ever opens an enquiry.

Can I claim for meals while driving?

No. HMRC classifies food and drink as personal subsistence unless you are travelling overnight for business. A coffee between fares is not deductible. However, if you buy bottled water specifically for passengers (e.g., for Uber Comfort trips), that is a business expense.

What about EV charging costs?

If you use the actual costs method, EV charging is treated exactly like fuel. Keep receipts from home chargers (calculate kWh cost) and public charging networks. If you use the simplified mileage method, charging is covered by the 45p/25p rate — do not claim it separately.

Can I claim car cleaning and valeting?

Yes, if it is solely for business purposes. A weekly valet to maintain your Uber rating is deductible. However, if you also use the car personally and the cleaning benefits both, you should apportion the cost. A £20 weekly valet × 52 weeks = £1,040/year deduction if 100% business use.

What if I drive for multiple platforms?

You declare all platform income on a single Self Assessment return. Add up gross fares from Uber, Deliveroo, Bolt, etc. Deduct all platform fees. Your vehicle costs cover all platforms — do not double-count. Keep separate mileage logs if you want to track profitability per platform, but HMRC only cares about the total.