Taxi and Private Hire Driver Tax

Taxi & Private Hire

Self Assessment for Taxi and Private Hire Drivers

Self Assessment deadline 31 January 2027 for taxi and private hire drivers

Tax Returns for Drivers

Do I Need to File a Tax Return?

If you drive a taxi or a private hire vehicle as a self-employed driver, including work through ride-hailing apps, you usually need to register for Self Assessment and file a tax return every year. I help drivers register, keep simple records, claim the right expenses and file on time, in English or Turkish.

Key Dates for the 2025 to 2026 Tax Year
WhatDeadline
Register for Self Assessment (if you started in 2025 to 2026)5 October 2026 (if you missed it, register as soon as possible)
Paper tax return31 October 2026
Online tax return31 January 2027
Pay any tax owed31 January 2027

Expenses and Mileage

Expenses You Can Usually Claim
  • Fuel, insurance, repairs, servicing and MOT
  • Vehicle hire or lease costs
  • Taxi or private hire licence fees
  • App and booking commission charged to you
  • Mobile phone costs for work
  • Car cleaning and parking while working

You cannot claim parking fines or other fines, or the private share of your vehicle costs.

Mileage Rate or Actual Costs?

You can claim your actual vehicle costs, or use the flat mileage rate (simplified expenses):

Tax yearFirst 10,000 business milesOver 10,000 miles
2025 to 202645p per mile25p per mile
2026 to 202755p per mile25p per mile

Simplified expenses cannot be used for cars designed for commercial use, such as black cabs and hackney carriages, or for a vehicle you have already claimed capital allowances on. Keep a mileage log either way.

Records to Keep
  • App earnings statements and any cash fare records
  • Receipts for fuel, repairs, insurance and licence fees
  • A mileage log showing business and private miles
Mileage rate 55p per mile for the first 10,000 business miles in 2026 to 2027
Making Tax Digital for Income Tax from 6 April 2027 for qualifying income over £30,000

National Insurance, MTD and VAT

National Insurance

For the 2026 to 2027 tax year, self-employed drivers pay Class 4 National Insurance of 6% on profits between £12,570 and £50,270, and 2% above that. If your profits are £7,105 or more, Class 2 is treated as paid, so you do not pay it separately.

Making Tax Digital for Income Tax

From 6 April 2027, sole traders and landlords with qualifying income over £30,000 in the 2025 to 2026 tax year must keep digital records and send quarterly updates to HMRC. Qualifying income is your total income from self-employment and property before expenses, so drivers with high fares may reach the threshold even if their profit is lower.

VAT

You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12-month period.

How I Can Help

  • Registering for Self Assessment and getting your UTR
  • Setting up simple record keeping
  • Preparing and filing your tax return
  • Getting ready for Making Tax Digital

Contact me on WhatsApp or get an instant quote with the pricing calculator.

This page is general information based on GOV.UK guidance as of October 2026. It is not personal advice.