Self Assessment 2026/27: What Changed for Uber Drivers

Self assessment 2026/27 brings three changes that matter to Uber drivers: a higher mileage rate of 55p a mile, Making Tax Digital for Income Tax for the larger earners, and a two-point rise in dividend tax for company directors. The main income tax and National Insurance rates for sole traders stayed put. This guide shows what changed, what it means for your pocket and what to do next.

Most confusion comes from mixing up two returns. Your 2025/26 return is due by 31 January 2027 and still uses the old rules, while the 2026/27 tax year that began on 6 April 2026 runs under the new ones. We keep the two apart below, and we add worked numbers so you can see the effect on a real-looking driver. For a full list of dates, see our key tax dates for Uber drivers.

Key takeaways

• The simplified mileage rate for cars rose from 45p to 55p a mile for the first 10,000 miles from 6 April 2026. It stays at 25p after that.
• Your 2025/26 return, due 31 January 2027, still uses 45p. The 55p rate only applies to journeys from 6 April 2026.
• Making Tax Digital for Income Tax is now live for sole traders with qualifying income over £50,000 in 2024/25. The threshold falls to £30,000 in April 2027 and £20,000 in April 2028.
• HMRC will not issue penalty points for late quarterly updates in a driver's first MTD year, but late returns and late payments are still penalised.
• Personal allowance, income tax bands and Class 4 National Insurance for sole traders are the same headline figures as before: £12,570, 20%, 40%, 6% and 2%.

What is self assessment 2026/27?

Self assessment 2026/27 means the rules, rates and deadlines that apply to the tax year running from 6 April 2026 to 5 April 2027. You report that year's profit on a return due by 31 January 2028. Until then, you file your 2025/26 return by 31 January 2027.

Every tax year has its own return, its own rates and its own mileage rate. That is why a change on 6 April 2026 does not rewrite the return you are filing this winter. Think of it as two separate jobs running side by side: finish 2025/26, and start 2026/27 on the right footing.

What has changed for self-employed drivers in the 2026/27 tax year?

Three changes matter most: the car mileage rate rose to 55p for the first 10,000 miles, MTD for Income Tax began on 6 April 2026 for qualifying income over £50,000, and dividend tax rose for limited company directors. Sole trader income tax and Class 4 National Insurance rates did not change.

The table below sets out each change, what it means for a typical driver and the action to take. Figures come from GOV.UK pages we checked on 21 September 2026, and we link the source next to each key number in the sections that follow.

Did the mileage rate really change to 55p?

Yes. According to GOV.UK's guidance on simplified expenses for vehicles, the 2026/27 rate for cars is 55p a mile for the first 10,000 miles and 25p after that. Before 6 April 2026 it was 45p for the first 10,000 miles.

The rate applies to business journeys made from 6 April 2026. It does not apply to journeys in 2025/26, even if you prepare that return after the new rate began. Motorcycles stay at 24p a mile. Black cabs and other commercial vehicles cannot use simplified expenses, so hackney carriage drivers claim actual costs and capital allowances.

Simplified mileage covers fuel, insurance, repairs, servicing and vehicle tax. You still claim parking and tolls separately. Once you choose simplified mileage for a vehicle, you must stay with it for that vehicle. Our mileage calculator shows the claim at each rate.

Does the 55p rate apply to my 2025/26 return?

No. Your 2025/26 return covers 6 April 2025 to 5 April 2026, so it uses 45p for the first 10,000 miles and 25p after that. The 55p rate applies only to tax year 2026/27. Filing late does not change the rate, because it follows the date of the journey.

This is the most common slip we expect to see this winter. A driver reads a headline about 55p in January and applies it to last year's miles. That overstates the claim and can trigger an HMRC enquiry. Keep two mileage totals: one to 5 April 2026 and one from 6 April 2026.

Illustrative example: 45p versus 55p on the same 12,000 miles

Illustrative example: Sam is an invented Uber driver in England with £30,000 of profit before any mileage claim, driving 12,000 business miles. The claim is calculated as 10,000 miles at the headline rate plus 2,000 miles at 25p. These figures were computed by script and are for illustration only.

The extra 10p a mile is worth £1,000 of deduction on 10,000 miles. For a basic-rate driver like Sam, that saves £260, being £200 Income Tax and £60 Class 4 NIC. For a higher-rate driver, it is worth £420, being 40% plus 2%. The saving stops growing after 10,000 miles, because the rate after that stays at 25p.

Sam cannot use the 55p figure for 2025/26 journeys. If Sam drove those same 12,000 miles in 2025/26, the claim is £5,000 and the bill £3,231.80. This example uses the 2026/27 rates and bands on GOV.UK and ignores other income, allowances and payments on account. Your own result depends on your figures.

Has Making Tax Digital for Income Tax started?

Yes. According to HMRC's guidance on when you need to use Making Tax Digital for Income Tax, it became mandatory on 6 April 2026 for sole traders and landlords with qualifying income over £50,000 in 2024/25. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028.

Qualifying income is your gross self-employment and property income before expenses, taken from your Self Assessment return. For a driver, that is your turnover, so gross fares matter, not profit. Someone with £55,000 of fares and £30,000 of profit in 2024/25 is in scope.

MTD means keeping digital records, sending an update every three months and filing a final declaration. It does not scrap Self Assessment. For the full mechanics, read our MTD explained for Uber drivers guide and the side-by-side comparison in Self Assessment vs Making Tax Digital.

Which MTD deadline is coming next?

If you are in MTD for 2026/27, your next quarterly update covers 6 April to 5 October 2026 and is due by 7 November 2026. The one after covers to 5 January 2027 and is due by 7 February 2027. The year-end update is due by 7 May 2027.

HMRC's quarterly update guidance says an update only carries totals for each income and expense category, not individual receipts. You must still send an update even if you had no income in the period. You can use the calendar-quarter option instead, with the same submission dates.

From September 2026, HMRC has begun signing up people who need MTD and have not signed themselves up. If you get a letter, do not ignore it. Check whether you really are in scope, then arrange software and records.

Are there penalties in the first year of MTD?

There is a grace period, but only partly. According to GOV.UK's penalties for Making Tax Digital for Income Tax guidance, you get no penalty points for late quarterly updates in your first MTD year, and no late payment penalty until 31 days after the due date in that first year.

From later years, each missed update or return earns a point. At four points, you receive a £200 penalty, and £200 for each further missed deadline. Late payment attracts 3% at day 15 and a further 3% at day 30, plus daily interest from day 31, once the first-year relief is over.

The relief does not cover late tax returns. A 2025/26 return filed after 31 January 2027 still triggers the ordinary £100 late filing penalty. Any dispute over penalties is best handled with professional representation.

What are the 2026/27 income tax and National Insurance rates?

For England, Wales and Northern Ireland, GOV.UK's income tax rates and bands for 2026/27 show a £12,570 personal allowance, 20% up to £50,270, 40% up to £125,140 and 45% above. The trading allowance of £1,000 is also listed on that page.

For Class 4 National Insurance, GOV.UK's self-employed National Insurance rates show 6% on profits between £12,570 and £50,270 and 2% above. Class 2 is treated as paid at profits of £7,105 or more, and is voluntary at £3.65 a week below that.

Scotland uses its own bands. GOV.UK's Scottish Income Tax page lists a 19% starter rate to £16,537, 20% to £29,526, 21% to £43,662, 42% to £75,000, 45% to £125,140 and 48% above that. Our tax on Uber driver profit guide has worked bills at several profit levels.

Do dividend tax changes affect Uber drivers?

Only if you run a limited company and pay yourself dividends. GOV.UK's tax on dividends page shows 2026/27 rates of 10.75% at basic rate, 35.75% at higher rate and 39.35% at additional rate, after a £500 dividend allowance. Sole traders are not affected.

The basic and higher dividend rates rose by two percentage points in 2026/27. If your company pays you dividends, the mix between salary and dividends is worth reviewing before the year ends. Our limited company mileage guide explains how company drivers claim car costs, which is different from sole trader simplified mileage.

What should you do now for your 2025/26 return?

File your 2025/26 return and pay any tax by 11:59pm on 31 January 2027. According to GOV.UK's Self Assessment deadlines, the paper deadline is 31 October 2026 and you must register by 5 October 2026 if you are new. To pay through your tax code, file online by 30 December 2026.

1. Total your business miles from 6 April 2025 to 5 April 2026 and multiply by 45p and 25p. Do not use 55p.
2. Gather your Uber, Bolt and other platform statements for the full year, and your fuel, insurance, licence and phone costs.
3. Check whether you will need to make payments on account. Your 2025/26 bill sets the two payments for 2026/27, due 31 January 2027 and 31 July 2027.
4. Compare the 2025/26 profit against the MTD thresholds. Over £30,000 of qualifying income means MTD from April 2027.
5. File online, pay by 31 January 2027, and keep your records for at least five years after the filing deadline.

Payments on account are half of last year's bill, paid on 31 January and 31 July. A first-time driver often meets this as a surprise, because the January bill includes the tax for 2025/26 plus the first instalment for 2026/27. Set money aside from each payout rather than in one panic in January.

What should you do to plan for 2026/27?

Start by logging every business mile from 6 April 2026 at 55p, and by checking whether MTD already applies to you. Then keep receipts and platform statements in one digital place, and review your position at the end of each quarter rather than once a year.

• Check your 2024/25 return for qualifying income. If it was over £50,000, you should already be signed up for MTD.
• Work out your 2025/26 turnover. Over £30,000 puts you in MTD from 6 April 2027.
• Use a mileage log that records date, start, end, purpose and miles. Our HMRC mileage log guide shows the layout.
• Set aside part of each week's earnings for tax, as the 2026/27 bill will be due by 31 January 2028.
• If profits fall in 2026/27, consider asking HMRC to reduce payments on account, but remember interest applies if you reduce them too far.

The 2026/27 return is due online by 31 January 2028, and registration for new filers closes on 5 October 2027. Our key tax dates guide has the full calendar, so we do not repeat it here. To test your own numbers, use the tax calculator.

What are the most common mistakes and the penalty each triggers?

Most mistakes come from carrying old habits into a new tax year. The table shows the errors we expect to see in 2026/27 and the penalty or cost each one triggers, based on the GOV.UK penalty pages we checked this month.

Key terms

• MTD (Making Tax Digital): HMRC's system for digital records and quarterly updates.
• Qualifying income: your gross self-employment and property income before expenses.
• Simplified expenses: a flat rate per mile instead of claiming actual vehicle costs.
• NIC (National Insurance contributions): a tax on profit that builds State Pension entitlement.
• Payments on account (POA): advance instalments towards next year's tax bill, due 31 January and 31 July.
• PHV (private hire vehicle): a licensed car booked in advance, such as one used for Uber.
• UTR (Unique Taxpayer Reference): the 10-digit number HMRC gives you for Self Assessment.

How Uber Driver Accountant helps

Uber Driver Accountant works only with drivers, on fixed fees from £20 a month, and we are independent of Uber and Bolt. We keep your 45p and 55p mileage apart, file your 2025/26 return, check whether MTD applies and plan your 2026/27 payments. See our personal tax service and our Making Tax Digital service, and view fees on the pricing page.

Conclusion

The 2026/27 changes are manageable if you split the year cleanly: 45p and the old rules for the return due 31 January 2027, and 55p and MTD awareness for the year that began on 6 April 2026. Do the mileage totals now, check your qualifying income and file early. If you would like us to handle it, contact us for a fixed-fee quote.

Last reviewed 21 September 2026 by the Uber Driver Accountant tax team.

This article is general information and is not personal tax advice. Speak to a qualified accountant about your own circumstances. If HMRC opens an enquiry or issues a penalty, professional representation is recommended.