An Uber driver in the UK has the freedom, flexibility and most importantly, the potential to earn a decent income. However, Uber drivers’ expenses can quickly add up, but the good news is that these expenses are tax-deductible, meaning you can legally reduce any tax that might be due on your Uber pay when you complete a self-assessment tax return.

If you’ve been searching Google for Uber driver expenses to claim on UK tax return, this guide tells you everything you need to know, and will help to make you as tax efficient as possible.

What Are Tax-Deductible Expenses For Uber Drivers in the UK?

When you register as a self-employed Uber Driver, you have to submit a tax return to HMRC each year. HMRC allows Uber drivers to deduct business-related expenses if you’re self-employed from you’re income, which means you only pay tax on your profits.

Some common tax-deductible expenses for Uber drivers UK include:

1. Vehicle Costs Uber Drivers Can Claim

You cant do Uber if you dont have a car, so many of your car related expenses are tax deductable:

Fuel and Mileage – whether you use a petrol, diesel or electric car for Uber you claim these costs as an expense. Electric charging fees are all tax-deductible expenses you can claim on your tax return.

Insurance – Business insurance you require to drive for Uber is also classed as an expense.

Maintenance and repairs – Cars cost a lot to take care of, often requiring MOTs, servicing, tyres and repairs, which can all add up. The good news is these costs are claimable.

Leasing, rental or hire purchase payments – If you choose to pay for your vehicle monthly or simply rent a car for Uber you can claim these fees as an expense.

Important notice, HMRC doesn’t allow you claim all vehicle related expenses mentioned previously. Ugo Tax would advise that you fully understand the strict HMRC rules which apply to expenses if you’re self-employed.

2. Claiming Uber Fees and Commissions

Uber takes a percentage of each fare your customers pay you in the app, which is a cost that can be claimed as an expense on your tax return.

3. Phone, Data and App Expenses

You need a phone as an Uber driver so the good news is that you can claim the following:

• a proportion of your mobile phone bill
• If you use navigation apps or ride management apps, which you have to pay for, these are classed as an expense also.

4. Cleaning, car appearance and interior costs

Maintaining high standards as an Uber driver is important for your customers, so you can claim the following:

• proffessional car washes and detailing.
• interior cleaning products.
• air fresheners, mats and small accessories for passengers, such as water.

5. Parking, Tolls and other travel expenses

Parking fees as well as airport drop off charges and tolls, are all expenses you can claim on self assessment tax return. just make sure you keep receipts.

6. Professional help: Accountant and tax software Costs

Time for a shameless plug, did you know that the fees Ugo Tax charges for filling a tax return, registering as self-employed, or Uber Driver Tax Advice are tax-deductible expenses.

Also tax software you use to file your Uber driver self-assessment tax return is classed as an expense.

7. Bonus Tax-Deductible Expenses For Uber Drivers in the UK

Roadside Assistance – lets hope you never need it but road side assistance from the AA or RAC is classed as an Uber driver expense.

Torches, portable battery, Jump pack and warning triangles – help to protect you in the event of a breakdown, and you can claim them as an expense when you ask Ugo Tax to submit your tax return.

Tyre inflator and pressure gauge – helps to not only keep you safe on the roads but will also save you money when driving with correctly inflated tyres. so pick up a tyre inflator and claim as an expense.

Tips for Keeping Accurate Uber Driver Expense Records

Accurate records are essential for claiming Uber driver expenses when completing self-assessment tax returns:

• Keep receipts for every expense you have or purchase.
• Log business mileage for every trip in case you need to provide proof to HMRC.
• Note dates purposes and amounts
• Consider using apps like Quickbooks or freeagent to simplify tracking and reduce mistakes

Common Mistakes Uber Drivers Make On UK Tax Returns

• Avoid claiming personal expenses when filling your tax return.
• Not tracking mileage for your vehicle which you may use for both business and pleasure use.
• Missing receipts or proof of expenses.

Self-employment can be complicated, so if you would like specific and tailored Uber driver tax advice leave a comment below or get in contact with us today.

Got a question?

Why not get in touch if you have a question about how to submit your Uber driver tax return?