When is my first tax bill due?

Later than most drivers expect. The tax year ends on 5 April, and the return and payment for it are not due until the following 31 January — so if you started driving in June 2026 your first bill is due on 31 January 2028. That is a long time for money that is not yours to sit in your account, which is why we give you a weekly savings figure from day one.

What is a payment on account?

An advance payment towards next year's tax, due in two instalments on 31 January and 31 July. It catches drivers out in their second year because 31 January becomes the balance of last year's tax plus half of it again on top. If this is your second return, budget for roughly 150% of what you were expecting.

Can I claim for the car I bought before I started driving?

Usually yes, in some form. If you bring a car you already owned into the business, there are rules about the value you bring it in at and how you claim for it. It depends on which expense method you choose, so it is worth a conversation rather than a guess.

What records do I need to keep, and for how long?

Your Uber statements, receipts for anything you claim, and a mileage log separating business from private miles. Keep them for at least five years after the 31 January filing deadline. If you are inside Making Tax Digital those records have to be digital, which in practice means photographing receipts rather than keeping them in the glovebox.

Personal Tax

Personal Tax & Self Assessment for Uber Drivers

Driving for Uber makes you self-employed, and that means one tax return a year. We prepare it, claim everything you are entitled to, and tell you exactly what to pay and when — so 31 January stops being a date you dread.

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£12,570

Tax-free personal allowance

For 2026/27

55p

Per business mile

First 10,000 miles, then 25p

31 Jan

Filing & payment deadline

Plus 31 July payment on account

£100

Instant late-filing penalty

Even if you owe no tax

The Problem

The problem: you are probably paying tax on money you spent

Uber pays you weekly and it is very natural to treat that number as your income. It is not. Your income is the gross fare the passenger paid. Uber's service fee is a business cost that comes off it — and so do fuel, insurance, licensing, your phone, cleaning the car, and a long list of other things.

You are only taxed on what is left. Every legitimate cost you fail to claim is a cost you get taxed on for no reason at all. When drivers bring us returns they filed themselves, we almost always find claims they missed — not clever schemes, just ordinary allowable expenses nobody had told them about.

The second problem is timing. The bill arrives long after the money did, and if you have not been putting anything aside, January is brutal. That part is entirely fixable with a number and a standing order.

What we do for you

Full Self Assessment preparation and filing
Mileage and actual-cost methods both calculated, so you use the better one
Every allowable expense identified from your statements and receipts
A weekly figure to set aside so January is never a surprise
Reminders before every payment date with the exact amount to pay
HMRC registration if you have not done it yet
Unlimited questions by phone, email or WhatsApp at no extra cost

Talk it through with us

How your tax is actually worked out

Start with your gross fares and tips for the tax year. Take off every allowable expense. What remains is your profit, and that is the figure that gets taxed.

You pay no Income Tax on the first £12,570 of total income, 20% up to £50,270, and 40% above that. On top of Income Tax you pay Class 4 National Insurance at 6% on profits between £12,570 and £50,270, and 2% on anything above.

If you drive part-time alongside an employed job, be careful: your salary uses up the personal allowance first, so your driving profit is usually taxed from the very first pound.

The mileage decision that changes your bill

For your vehicle you choose one of two methods and normally stick with it for as long as you own the car. Either claim the flat mileage rate — now 55p a mile for the first 10,000 miles and 25p after that — or claim the business proportion of your actual running costs.

You cannot do both. The mileage rate already includes fuel, insurance, servicing and wear, so claiming those separately on top is double-counting and it is the error HMRC spots most readily.

Which one wins depends on your car. Newer, more expensive, high-mileage vehicles often do better on actual costs. Older, cheaper, reliable cars usually do better on mileage. We calculate both in your first year and use whichever legitimately gives you the lower bill.

What we claim that drivers usually miss

None of this is aggressive. It is simply what the rules already allow, applied properly.

Uber's service fee in full — for a full-time driver this alone runs to thousands a year
Private hire driver licence, vehicle licence, plate fees, DBS and medical costs
The business share of your mobile phone, data and handset
Dash cam, phone mount, chargers and cables
Car washes, valeting and cleaning products
Water, sweets and tissues provided for passengers
Breakdown cover and public liability insurance
A flat rate for the admin you do at home
Our own fee, which is itself deductible

Late returns and HMRC letters

If you are behind, you are not the first driver to sit on it and hope. Late returns are far more recoverable than people fear, and coming forward voluntarily almost always produces a better outcome than waiting for HMRC to make contact.

We will bring you up to date, work out where you genuinely stand, and deal with HMRC on your behalf. No lectures.

Once your profit grows, the return is only half the question

If your profit is heading past £40,000, how you are structured starts to matter more than how well your return is prepared. We will raise it with you at the right moment rather than leaving you on the default forever.

Look at the limited company option

Questions

Personal Tax questions drivers ask

Almost certainly yes. If your self-employed income is over the £1,000 trading allowance you must register with HMRC and file a return, regardless of whether you have a job as well. Part-time driving alongside employment is one of the most common situations we deal with.

Keep Reading

Related for drivers

Allowable expenses checklist Your first tax return Key tax dates

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