It can be challenging to handle your taxes as an Uber driver. One of the most important things you should know is that, for HMRC, you are like any individual running their own business and, for that reason, all the responsibility for your taxes falls on you.
But don't worry! We prepared this tax guide for Uber drivers that will cover everything you need to know about your taxes!
Registering as a Self-Employed Uber Driver
The first step is to register yourself with HMRC as self-employed. You have to do this as soon as your income is more than £1,000 in a tax year. After this, you need to complete a tax return!
Please note that you need to record all your expenses (for 6 years!) to create a tax loss if needed, and also in case HMRC asks for evidence. This can be used against any money you make in the future and save you some tax then!
Be aware that, as an Uber driver, you must register with HMRC to declare your earnings by October 5th!
How to Calculate Your Tax as an Uber Driver
Income Tax and National Insurance you need to pay always depend on how much money is left over after deducting your expenses, allowances and reliefs.
When you fill in your tax return online (we can help you with this!), HMRC will calculate how much tax you owe based on the information you enter, like your income and your expenses.
Tax Deductions for Uber Drivers
We have great news for you: most of the expenses you will have as an Uber driver will be tax-deductible! Great, right? Below you can find some examples of expenses you can claim:
- A part of your car or motorcycle cost based on the amount you paid (if this is a personal car);
- Car or motorcycle leasing;
- Flat Mileage Allowance;
- Billing charges of your carrier;
- Car or motorcycle cleaning and valeting;
- Car or motorcycle maintenance;
- Vehicle Insurance;
- Public Liability Insurance;
- Car or motorcycle loan interest;
- Floor mats;
- Car tool kit;
- First aid kit;
- Tire inflator and pressure gauge;
- Portable battery jump pack;
- Torches and flares;
- Phone costs (for business use);
- Snacks and drinks for customers;
- Toll fees;
- Roadside assistance plans;
- Business taxes and licenses;
- City and airport charges;
- Office supplies;
- Uber commissions and service charges;
- Private car hire license fee;
- Uber’s cut of your earnings;
- The cost of any training needed.
You can't claim expenses like parking fines, HMRC penalties, training for new skills and personal expenses.
How do I claim these expenses as an Uber driver?
You can claim all of these expenses when you complete your Self Assessment. If this sounds confusing and you don't know how to do it, we are here to assist you!
The process through our app only takes 5 minutes. With our "no refund, no fee" policy, we can check to see if you're owed any money for free!
Using Tommy's Tax app will help you claim the maximum amount possible! On average, people who claim tax returns through Tommy's Tax app earn £3000, which is significantly higher than what they would have claimed themselves!