Uber Driver Tax Deductions Checklist for 2026/27

As a self-employed Uber driver, you pay tax on your profit, not on everything the app pays you. Every legitimate business cost you claim reduces that profit, so missing an allowable expense means paying more tax than you need to. This checklist walks through the common deductions, what evidence to keep, and the traps that catch drivers out.

Key takeaways

• You are taxed on profit: income minus allowable business expenses.
• Only costs that are wholly and exclusively for the business can be claimed.
• For vehicle costs, choose simplified mileage or actual costs, not both.
• Mixed-use items, like a phone, need a sensible business share.
• Keep records for everything you claim.

What counts as an allowable expense

HMRC allows self-employed people to deduct costs that are wholly and exclusively for running the business. For a driver, that is the cost of keeping a vehicle on the road and earning, but not the cost of living or private use. A cost that has both business and private elements has to be split fairly. You can read the general rules on GOV.UK's expenses for the self-employed page. Our guide on sole trader allowable expenses gives broader examples.

The checklist

Vehicle running costs

If you use actual costs, you can claim the business share of fuel or charging, insurance, servicing and repairs, tyres, MOT, vehicle tax, breakdown cover and parking where it relates to work. If you use the simplified mileage method instead, you claim a set rate per business mile and do not claim those running costs separately. Check the current mileage rates on GOV.UK's simplified expenses page. Our guide to mileage versus actual costs helps you pick.

Licensing and compliance

Private hire licence costs, driver and vehicle licensing fees and similar compliance costs are often allowable where they are needed to do the work. See our article on private hire licence costs and tax relief.

Insurance

Hire and reward insurance, and other cover needed for the business, can usually be claimed. Check whether any part covers private use, which would need to be split.

Phone and data

Your phone is essential for the app, but you probably use it privately too. Claim a reasonable business share of contract and data costs, and keep a record of how you worked it out. See fuel, cleaning and phone expenses.

Cleaning and consumables

Car washes, valeting and cleaning supplies for a vehicle used for passengers are commonly claimed. Water or sweets for passengers may be allowable if genuinely provided for the business, but keep it modest and documented.

Other business costs

Accountancy fees, bank charges on a business account and some business software can also be allowable. Dash cams and similar equipment may qualify, though larger purchases can fall under capital allowances rather than ordinary expenses.

Summary table

Worked example (illustrative)

"Hassan", an illustrative example, drives full-time and tracks every business mile in an app. He compares simplified mileage with actual costs at the end of his first year and picks whichever gives the lower profit, given his circumstances. He keeps all receipts in a folder, claims a documented share of his phone bill, and does not claim his speeding fine. The numbers are only an illustration: your own result depends on your costs, mileage and vehicle.

Hassan's habit of recording costs weekly, rather than reconstructing the year in January, makes his return much quicker and more accurate. See our Uber driver tax return guide for the full process.

Costs drivers often overlook

Beyond the obvious fuel and insurance, several smaller costs are easy to miss. Vehicle breakdown cover, tyre replacement, windscreen repairs, in-car phone mounts and chargers, and card payment or bank charges on a business account can all add up across a year. If you pay for a car park or congestion-related charge while working, check whether it is allowable and keep the receipt. Training that maintains skills you already use, and accountancy fees, may also be claimable. Recording these as they happen is much easier than remembering them in January.

Choosing between mileage and actual costs

Many drivers choose simplified mileage because it means less paperwork: you record business miles and multiply by the set rate. Actual costs can be better if your vehicle is expensive to run, for example an electric or higher-priced car with high insurance and depreciation allowances, but they require more records and extra rules on capital items. The best approach is to work out both once, in your first year, and compare. You may be limited in switching methods later for the same vehicle, so check the current rules before you commit. Our article on vehicle lease and rental tax covers drivers who do not own their car.

Records to keep

Keep receipts and invoices, bank statements, mileage logs, your annual earnings statements from the platform and evidence for how you split mixed-use costs. Digital copies are fine, as long as they are clear and organised. A separate business bank account makes this considerably easier.

Income side: do not forget it

A deductions checklist is only half the story. You must report all the income you received from driving, not only the amount that landed in your bank account. Platforms may deduct commission, fees or other charges before paying you, and those deductions can themselves be business expenses, but the starting point is your gross earnings. Cash tips, bonuses and incentive payments are generally income too. Download your annual earnings summary from the platform and check it against your own records, so that income and costs are both complete.

Working across more than one app

Many drivers also work for other platforms or deliver food. Your self-employed income across all of them is added together for tax purposes, and shared costs such as fuel, insurance and your phone are claimed once, not once per app. Keep a simple record that shows income by platform and costs for the whole business, so you can see the overall profit. If you also have a part-time job, your employment income goes on the same return, which can affect the tax rate on your profit.

Planning for the tax bill

Your deductions reduce your profit, but you still owe tax and National Insurance on what is left. Estimate your profit every month, and put aside a share of earnings in a separate account for the bill. Read about payments on account so the second instalment does not surprise you either.

A simple weekly routine

The drivers who claim the most accurately are rarely the ones with the cleverest tricks. They are the ones with a routine. Once a week, spend ten minutes saving receipts, noting any new costs and checking that your mileage log matches your trips. Once a month, compare your records with your bank statement and platform earnings. At year end, you then have a complete set of figures rather than a pile of paper. If you do this from your first week, even your first return will feel manageable, and you will know your true profit throughout the year.

It also helps to separate business and personal money. A dedicated business bank account means every transaction on it is either income or a cost, which removes a lot of sorting and doubt.

Common mistakes

• Claiming both mileage and fuel. It is double counting.
• Claiming 100% of a mixed-use cost. Apportion sensibly.
• Claiming fines. Parking and speeding penalties are not allowable.
• No mileage log. Without one, a mileage claim is hard to defend.
• Treating platform deductions as the whole story. You still need to report gross income and then claim costs.

Want to be sure you claim everything you are entitled to? Our Uber driver accounting team prepares returns for drivers every year. You can get in touch for a friendly conversation.