Rideshare Driver

Tax guidance for Uber, Bolt, and private hire drivers in the UK.

Allowable Expenses

• Vehicle Running Costs — Use the approved mileage rate (45p/mile first 10,000 miles, 25p thereafter) or claim actual costs — fuel, servicing, tyres, and MOT.
• Vehicle Cleaning — Car washing and valeting to maintain a professional standard for passengers — deductible as a business expense.
• Licensing Fees — Private hire vehicle licence, driver's licence renewal, and enhanced DBS check fees required by your local authority.
• Platform Commission — The commission deducted by Uber, Bolt, or other platforms from your fares is a fully deductible cost of doing business.
• Phone & Sat Nav — Your smartphone and data plan (business proportion) and any dedicated sat nav device used for navigation.
• Insurance — Private hire or rideshare insurance — significantly more expensive than personal insurance but fully deductible.

Tax Tips

• Choose between the flat mileage rate and actual vehicle costs at the start — once you choose actual costs, you cannot switch back to mileage for that vehicle.
• Tips received from passengers are taxable income — declare all tips, whether received in cash, via the app, or by card.
• If you drive for multiple platforms (Uber + Bolt), combine all income on a single Self Assessment return.
• Keep records of waiting time and dead miles (driving to pick-up locations) — these are business miles even without a passenger.

Frequently Asked Questions

Are tips from passengers taxable?

Yes. All tips received from passengers — whether in cash, via the app, or by card — are taxable trading income and must be included in your Self Assessment return.

Can I switch between the mileage rate and actual costs?

You must choose your method when you first use a vehicle for business. If you start with the mileage rate, you can switch to actual costs in a later year. However, once you choose actual costs for a vehicle, you cannot switch back to the mileage rate for that vehicle.

How do I handle income from multiple platforms (Uber + Bolt)?

Combine all income from all rideshare platforms onto a single Self Assessment return as trading income. You do not file separately per platform. Keep records for each platform for your own verification.

Are Congestion Charge and ULEZ fees deductible?

Yes. Congestion Charge, ULEZ, and Low Emission Zone fees incurred while making business journeys are deductible business expenses. Keep records of each payment — TfL provides statements for account holders that you can use as evidence.