Uber Driver Tax Guide 2026: What Glasgow Drivers Need to Know
By Sardar Muhammad, AAT • • 10 min read
📋 Quick Summary
- Uber, Bolt, and private hire drivers are self-employed and must file a self-assessment tax return
- You can claim expenses like fuel, insurance, repairs, Uber fees, and phone bills
- The self-assessment deadline is 31st January each year
- The personal allowance for 2025/26 is £12,570 (tax-free)
Are Uber Drivers Self-Employed?
Yes. Despite the ongoing debate about worker status, for tax purposes, Uber drivers in the UK are treated as self-employed. This means you're responsible for:
- Registering with HMRC as self-employed
- Keeping records of your income and expenses
- Filing a self-assessment tax return each year
- Paying income tax and National Insurance on your profits
This applies whether you drive for Uber, Bolt, Ola, Free Now, or any private hire operator in Glasgow.
How to Register as Self-Employed
If you haven't already, you need to register with HMRC as self-employed. Here's how:
- Go to GOV.UK self-assessment registration
- You'll need your National Insurance number
- Choose "self-employed" as your reason for registering
- HMRC will send you a Unique Taxpayer Reference (UTR) within 10 days
Important: You should register by 5th October following the end of the tax year you started driving. So if you started driving in June 2025, register by 5th October 2025.
What Expenses Can Uber Drivers Claim?
This is where many drivers leave money on the table. You can deduct allowable expenses from your income before calculating tax. The more legitimate expenses you claim, the less tax you pay.
🚗 Vehicle Expenses
You have two options for vehicle costs:
Option 1: Actual Costs (Recommended for high mileage)
- Fuel costs for business journeys
- Car insurance (business use proportion)
- Road tax
- MOT and servicing
- Repairs and maintenance
- Car wash and valeting
- Breakdown cover (AA, RAC etc.)
- Lease payments or finance interest (not the full payment)
Option 2: Simplified Mileage Rate
- 45p per mile for the first 10,000 miles
- 25p per mile after that
For most full-time Uber drivers, actual costs work out better, but we can calculate both options for you.
📱 Other Allowable Expenses
- Uber/Bolt service fees – the commission they take from each fare
- Phone and phone plan – essential for the app (claim business use proportion)
- Phone mount and charger – accessories for driving
- Private hire licence fees – Glasgow City Council licensing
- Badge and vehicle licence renewal
- DBS check fees
- Public liability insurance
- Accountancy fees – yes, our fees are tax-deductible!
- Uniform or branded clothing
- Refreshments for passengers – water, mints etc.
- Sat nav subscription – if you use one
How Much Tax Will I Pay?
Your tax is calculated on your profit (income minus expenses), not your total earnings. Here's how it works for 2025/26:
| Income Band | Tax Rate |
|---|---|
| £0 - £12,570 | 0% (Personal Allowance) |
| £12,571 - £50,270 | 20% (Basic Rate) |
| £50,271 - £125,140 | 40% (Higher Rate) |
| Over £125,140 | 45% (Additional Rate) |
You'll also pay National Insurance:
- Class 2: £3.45 per week if profits over £12,570
- Class 4: 6% on profits between £12,570 and £50,270, then 2% above that
Example Calculation
Annual Uber income: £35,000
Allowable expenses: £12,000 (fuel, insurance, Uber fees, phone, licence etc.)
Taxable profit: £23,000
Personal allowance: £12,570 (tax-free)
Taxable amount: £10,430
Income tax (20%): £2,086
Class 4 NI (6%): £626
Total tax bill: approximately £2,712
Key Tax Deadlines for Uber Drivers
- 5th April – End of tax year
- 5th October – Deadline to register for self-assessment (if new)
- 31st October – Paper tax return deadline (if applicable)
- 31st January – Online tax return deadline AND first payment on account
- 31st July – Second payment on account
Tip: File early! You don't have to wait until January. We recommend filing as soon as you have all your documents after April, so you know what you owe and can plan accordingly.
Record Keeping Tips
HMRC can ask to see your records for up to 6 years, so keep everything organised:
- Download your Uber/Bolt statements regularly (annual tax summary)
- Keep fuel receipts or use a mileage tracking app
- Save invoices for all business purchases
- Use a separate bank account for business income if possible
- Take photos of receipts – paper fades!
Frequently Asked Questions
Do Uber drivers pay tax in the UK?
Yes, Uber drivers are self-employed and must register for self-assessment with HMRC. You pay income tax on your profits (earnings minus allowable expenses) and Class 2 and Class 4 National Insurance.
What expenses can Uber drivers claim?
Uber drivers can claim vehicle costs (fuel, insurance, repairs, road tax), Uber service fees, phone bills, licensing fees, cleaning costs, and a proportion of home office expenses if you do admin at home.
When is the self-assessment deadline for Uber drivers?
The deadline for online self-assessment is 31st January following the end of the tax year. For the 2025/26 tax year (April 2025 - April 2026), the deadline is 31st January 2027.
How much tax will I pay as an Uber driver?
Tax depends on your profit. The personal allowance is £12,570 (tax-free). Basic rate (20%) applies from £12,571 to £50,270. Higher rate (40%) applies above that. You also pay National Insurance on profits over £12,570.
Can I claim for a new car as an Uber driver?
You can't deduct the full cost of buying a car in one year. However, you can claim capital allowances (a percentage each year) or, if the car is electric, you may be able to claim 100% in year one. Alternatively, use the simplified mileage rate which covers vehicle costs.
Need Help With Your Tax Return?
As a Glasgow-based accountant specialising in taxi and private hire drivers, I understand the specific challenges you face. I can:
- Prepare and file your self-assessment return
- Maximise your allowable expenses to reduce your tax bill
- Calculate whether actual costs or mileage rate works better for you
- Handle any HMRC correspondence
- Advise on setting aside the right amount for tax
Get a Free Quote
I offer affordable, fixed-fee tax returns for Uber and private hire drivers in Glasgow.
Sardar Muhammad, AAT Certified
Sardar is an AAT certified accountant and founder of LimeTree Accounting Solutions in Glasgow. He specialises in helping taxi drivers, delivery drivers, and self-employed professionals with their tax returns and business accounts.