Accountants for Uber Drivers

Yes. Under HMRC digital platform reporting rules, Uber and other platforms report driver earnings data to HMRC. This does not replace your own responsibility to register, keep records and file a correct return — but it does mean the figures you declare need to match what Uber has reported. Undeclared platform income is increasingly easy for HMRC to identify.

Gross fares. Your turnover is the full amount riders paid, before Uber deducted its service fee. You then claim the service fee as a business expense. Declaring only what landed in your bank understates your turnover and can create a mismatch with the figures Uber reports to HMRC, which is exactly the kind of discrepancy that prompts questions.

Yes. Tips paid through the app, Quest bonuses, surge guarantees and referral payments are all taxable income and appear on your weekly statement. They form part of your turnover in the same way as fares.

Yes. Both are self-employment income and go on a single Self Assessment return. Keep the income separated in your own records so you can see which is actually paying you better once expenses are accounted for, but HMRC only needs the combined figure.

Allowable expenses may include business mileage at 45p per mile for the first 10,000 miles and 25p thereafter, or actual vehicle running costs such as fuel, insurance, servicing, repairs, MOT and finance interest. Also mobile phone and data, the Uber service fee, parking for business journeys, tolls, dash cams, phone holders, cleaning supplies and your private hire licence costs. You cannot claim the same vehicle costs twice using both the mileage rate and actual costs.

Yes. Self-employed drivers can use HMRC approved mileage rates: 45p per mile for the first 10,000 business miles in a tax year, then 25p. You must keep a mileage log showing dates, journey start and end points, purpose and miles driven. Once you choose the mileage rate for a vehicle you must keep using it for that vehicle — you cannot switch to actual costs part-way through.

If your Self Assessment tax bill exceeds £1,000 in a year, HMRC requires advance payments towards the following year's bill, called payments on account. These fall due in January and July and are each 50% of the prior year's bill. A lot of Uber drivers are caught out by this in their second year, because the January bill is effectively one and a half years of tax at once. We factor it into your planning from the start.

Only if your taxable turnover exceeds £90,000 in a rolling 12-month period, and most individual Uber drivers do not reach this. Uber's VAT position is also different from a standard sole trader arrangement: Uber acts as the principal for VAT purposes on UK rides, so the VAT on the fare is Uber's responsibility rather than yours in most cases. If you are approaching the threshold, or you have other self-employed income alongside driving, it is worth checking your position properly.

Keep your Uber weekly earnings statements, bank statements, a mileage log recording date, start and end point, purpose and miles, fuel receipts, vehicle insurance and service records, MOT certificates, private hire licence documents, phone bills and any HMRC letters. HMRC requires records to be kept for at least five years after the 31 January filing deadline.

MTD for Income Tax applies to sole traders with qualifying income over £50,000 from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028. The important detail is that the test uses gross income, not profit — so a full-time Uber driver can be caught by it on turnover that looks nothing like their take-home pay. Affected drivers must keep digital records and send quarterly updates using compatible software.