Mileage Allowance Scotland: Glasgow Uber Driver Tax Guide 2026/27

Glasgow Uber and private hire drivers claim the same mileage allowance as everyone else in the UK: 55p a mile for the first 10,000 business miles in 2026/27, then 25p a mile. The mileage allowance in Scotland is not different. Glasgow Uber driver tax only differs when your profit is taxed, because Income Tax uses Scottish bands.

That split causes most of the confusion. Drivers hear that Scotland has its own tax system and assume everything changes. It does not. This guide separates what is UK-wide from what is Scottish, then adds the local details that matter in the city: Glasgow City Council licensing, the Low Emission Zone, and the records you need.

We are a Scottish practice, so we prepare these returns every year. Everything below is checked against GOV.UK, HMRC and Scottish Government sources, and where we could not confirm a figure we send you to the official page instead of guessing.

Key takeaways

• The simplified mileage rates are UK-wide: 55p a mile for the first 10,000 business miles in 2026/27, then 25p, per HMRC's simplified expenses guidance.
• Only Income Tax uses Scottish rates. Class 4 National Insurance and Making Tax Digital are UK-wide.
• Black cab (hackney) drivers cannot use the mileage rates. Private hire drivers in ordinary cars can.
• A Low Emission Zone Penalty Charge Notice is a penalty, so it is not a tax-deductible expense.
• Keep a trip-by-trip mileage log. The rate is only as strong as the records behind it.

What is the mileage allowance in Scotland?

The mileage allowance in Scotland is HMRC's simplified expenses flat rate for using your own car for business. It is identical across the UK. Instead of claiming fuel, insurance and servicing, you claim a set amount per business mile and deduct it from your self-employed profit.

Because Glasgow drivers are self-employed, the claim goes on the self-employment pages of your Self Assessment return. The saving then comes through lower Scottish Income Tax and lower Class 4 National Insurance on the reduced profit.

Key terms

• **Simplified expenses:** flat-rate deductions HMRC allows instead of tracking real vehicle costs.
• **PHV:** private hire vehicle, such as an Uber or Bolt car.
• **Hackney:** the traditional black cab licence, called a taxi by Glasgow City Council.
• **NIC:** National Insurance contributions. Class 4 is the one paid on self-employed profits.
• **MTD:** Making Tax Digital, HMRC's system of digital records and quarterly updates.
• **LEZ:** Low Emission Zone. Glasgow's covers the city centre.
• **PCN:** Penalty Charge Notice, the fine issued for entering a zone in a non-compliant vehicle.
• **UTR:** Unique Taxpayer Reference, the 10-digit number HMRC gives you for Self Assessment.

Is the mileage rate different for Glasgow drivers?

No. HMRC sets one mileage rate for the whole UK. From 6 April 2026 you can claim 55p a mile for the first 10,000 business miles in the tax year and 25p a mile after that. Before that date the first-10,000 rate was 45p, so 2026/27 is a real improvement for full-time drivers.

According to HMRC's guidance on simplified expenses for vehicles, the 2026/27 rates for cars are 55p and 25p. Use our mileage calculator to see what your own annual miles produce under each rate.

Many full-time Glasgow drivers pass 10,000 business miles in a few months. After that the lower 25p rate applies for the rest of the tax year, so the average value per mile falls as your total rises.

How does Scotland's tax differ from the rest of the UK?

Scotland sets its own Income Tax rates and bands, which differ from the rest of the UK. Class 4 National Insurance, VAT and Making Tax Digital are decided by the UK Government and are the same in Glasgow as in Manchester or London.

The table below sorts each item so you know which set of rules to apply. The mistake we see most is a return prepared with rest-of-UK bands for a Scottish taxpayer, which produces the wrong bill.

What are the Scottish Income Tax bands for 2026/27?

For 2026/27, Scotland has a 0% Personal Allowance up to £12,570, then six taxable bands running from a 19% starter rate to a 48% top rate. The figures below come from the Scottish Government's published rates, and they apply to your self-employed profit after expenses.

According to mygov.scot's current Scottish Income Tax rates for 2026/27, the bands are as follows. Most Glasgow drivers will sit in the first three.

If your total income includes other sources or is unusual, we can model it properly.

What is Class 4 National Insurance for a Glasgow driver?

Class 4 National Insurance is the self-employed contribution charged on profits over £12,570. For 2026/27 it is 6% on profits between £12,570 and £50,270 and 2% on profits above £50,270. It is the same in Glasgow as anywhere else in the UK.

According to GOV.UK's self-employed National Insurance rates for 2026/27, Class 2 no longer has to be paid once your profits reach £7,105, though it is treated as paid to protect your record. Lower earners can choose to pay voluntarily.

Can I use the mileage rate as a Glasgow private hire driver?

Usually yes, if you drive an ordinary car. The mileage rate is available for cars, vans and motorcycles, as long as you have not already claimed capital allowances on the vehicle or deducted its costs in your profit calculation. Black cabs are excluded.

HMRC's guidance says you cannot use simplified expenses for cars designed for commercial use, such as black cabs and hackney carriages. If you hold a Glasgow taxi licence with a purpose-built cab, you claim actual costs and capital allowances. Our guide to allowable expenses for Uber drivers lists what belongs in each column.

There is one more rule to know. GOV.UK's vehicle guidance says that once you choose flat rates for a vehicle, you must keep using them for as long as the vehicle is in the business. Choose carefully in your first year.

Mileage rate or actual costs: which is better?

It depends on your car and your miles. The mileage rate usually wins for a fuel-efficient, older, cheaply insured car doing modest miles. Actual costs can win for an expensive, newly bought car or an electric vehicle with high depreciation. The only way to know is to work out both.

How do I claim mileage step by step?

You claim mileage by recording every business trip, adding the miles up over the tax year, applying the two rates and entering the total on your Self Assessment return. Follow the steps below for a claim that holds up if HMRC asks questions.

1. Decide on your method for each vehicle before the tax year begins, using the mileage calculator to compare.
2. Record every trip as it happens: date, start point, end point, purpose and miles. A digital log is fine, and see our guide to mileage logs and bookkeeping records.
3. Separate business miles from commuting and personal driving. Home-to-workplace journeys are not deductible.
4. At year end, total the business miles. Apply 55p to the first 10,000 and 25p to the rest.
5. Claim parking and tolls separately on top, and keep the receipts.
6. Enter the vehicle claim on the self-employment pages and file by the deadline. Our key tax dates for Uber drivers has the calendar.

GOV.UK also states that commuting is not deductible. The car, van and travel expenses guidance lists the costs you can claim and the ones you cannot.

Illustrative example: a Glasgow driver's 2026/27 bill

This illustrative example uses an invented driver working full time for Uber in Glasgow. All figures are made up for demonstration and ignore other income, payments on account and any allowances not mentioned.

The taxable amount above the £12,570 allowance is £12,970. The first £3,967 sits in the starter band and the remaining £9,003 in the basic band. Without the mileage claim, profit would be £7,500 higher and the bill noticeably bigger.

Notice what the driver did not do. There is no separate claim for fuel, insurance or servicing, because the flat rate covers them. Claiming both is one of the most common ways a return goes wrong.

Does Glasgow City Council licensing cost count as an expense?

Yes. Costs of holding the licences and checks you need to work are generally allowable business expenses. In Glasgow that means your driver licence, vehicle licence, enhanced disclosure check and the medical that supports your application, as long as you paid them for your business.

Glasgow City Council licenses taxis and private hire cars, and treats them as separate categories. We are not quoting fee amounts here because they change, and the council publishes them on its taxi and private hire licences page. Check that page for what you will pay before you budget.

Keep the receipt or bank record for each payment. If you switch between private hire and hackney work, note which licence each cost belongs to, so the claim sits against the right kind of work.

How does the Glasgow Low Emission Zone affect drivers?

Glasgow's Low Emission Zone covers the city centre and runs 24 hours a day, every day, including public holidays. Cameras check number plates, and a vehicle that does not meet the standard receives a Penalty Charge Notice. Taxis and private hire cars are inside the scheme.

According to mygov.scot's guide to Low Emission Zones, Scotland has four zones, in Aberdeen, Dundee, Edinburgh and Glasgow, all enforced with automatic number plate recognition. The council's own Glasgow pages set out the vehicle standards and penalty amounts, so check them before you buy or change a car.

The tax angle is simple. A PCN is a penalty, and GOV.UK says fines and penalty charges cannot be claimed. Treat any LEZ notice as a cost you carry yourself. Spend the effort on staying compliant instead.

Can I claim the cost of a compliant car?

Possibly, but the route depends on your method. If you claim actual costs, the business share of a vehicle's purchase price can qualify for capital allowances. If you choose the mileage rate, the purchase is already covered by the rate and cannot be claimed separately.

This is a big reason to compare methods before replacing a vehicle. A purchase that is worthless on the mileage method can be valuable on actual costs, and switching later is restricted. Speak to us before you sign a finance agreement.

What about VAT and Making Tax Digital in Scotland?

Both are UK-wide, so Glasgow drivers follow the same rules as everyone else. Private hire drivers must charge VAT on fares once taxable turnover passes the registration threshold, which is set on GOV.UK. Making Tax Digital for Income Tax is phasing in by income level.

According to HMRC's Making Tax Digital eligibility guidance, it applies from 6 April 2026 if your 2024/25 qualifying income was over £50,000, from 6 April 2027 above £30,000 (based on 2025/26), and from 6 April 2028 above £20,000 (based on 2026/27).

If it applies to you, you will need compatible software and quarterly updates. Read our Making Tax Digital explainer for Uber drivers, or see how our Making Tax Digital service handles it for you.

Common mistakes and the penalty each triggers

Most errors we see in Glasgow returns are avoidable. Each one can lead to a tax adjustment, interest, and in the worse cases a penalty. Penalty amounts depend on whether HMRC considers an error careless or deliberate, so check GOV.UK or take advice.

• **Using rest-of-UK bands.** Underpays or overpays Income Tax. Correct it by amending the return.
• **Claiming mileage and fuel together.** Double-counts costs, so HMRC can disallow the expense and charge a penalty for careless errors.
• **No mileage log.** The claim is hard to defend, so it may be reduced in an enquiry.
• **Claiming an LEZ PCN.** Fines are not deductible, so the deduction is refused.
• **Using flat rates on a black cab.** Not permitted, so the claim can be reversed.
• **Counting commuting.** Home-to-workplace travel is not deductible, and inflated mileage risks a serious penalty.
• **Filing late.** HMRC can charge penalties for late returns, so file early and check the amounts on GOV.UK.

Glasgow driver checklist for 2026/27

1. Confirm which vehicle method you are using and write it down.
2. Keep a live mileage log for every shift, business and personal separated.
3. Save receipts for licence, badge, disclosure and medical costs.
4. Check your car against the Glasgow Low Emission Zone standard before renewing or buying.
5. Make sure your return applies Scottish Income Tax bands.
6. Check if Making Tax Digital applies to you and when.
7. Set money aside every week for tax and National Insurance.

How Uber Driver Accountant helps

Uber Driver Accountant is a Scottish practice that works only with drivers, and we are independent of Uber and Bolt. We prepare Scottish returns with the right bands, compare mileage against actual costs for your car, and manage Making Tax Digital for you. Fees are fixed and start from £20 a month, with no hourly surprises.

See the personal tax service for what is included, our pricing for the fixed fees, and our Glasgow page for local support.

Conclusion

The mileage allowance in Scotland is straightforward: 55p then 25p, the same as the rest of the UK. The detail is on the Scottish side, where your profit is taxed at Scottish rates, and in local rules such as Glasgow licensing and the Low Emission Zone. Get those right and your return is simple.

If you would like a Glasgow specialist to check your numbers, contact us for a fixed-fee quote.

Last reviewed 19 September 2026 by the Uber Driver Accountant tax team.

This article is general information, not personal tax advice. Rates and rules change, so check the linked official pages and speak to a qualified accountant before acting. If HMRC disputes a claim or issues a penalty, professional representation is recommended.