🔑 Key Rule
HMRC allows you to deduct expenses that are wholly and exclusively incurred for your business. Mixed-use costs (business and personal) must be apportioned fairly.
Mileage Allowance vs Actual Costs: Choose One Method
The first decision every Uber driver must make is whether to claim actual vehicle costs or the HMRC Approved Mileage Allowance (AMAP). You cannot claim both, and you must stick with the same method once you have started using a vehicle for business.
HMRC Mileage Allowance (most popular): 45p per mile for the first 10,000 business miles per year, then 25p per mile beyond that. This one figure covers fuel, insurance, depreciation, servicing, and tyres — everything. It is simpler, requires less record-keeping, and for most drivers produces a higher deduction than tracking actual costs individually.
Actual costs method: You record and claim each individual cost — fuel, insurance, repairs, MOT, depreciation via capital allowances, and so on. This may benefit drivers with high-cost vehicles or unusually high actual expenses, but requires meticulous records and is usually more complex at Self Assessment time.
For the majority of Uber drivers doing 15,000–25,000 business miles per year, the mileage allowance wins. Use our free calculator to compare both scenarios.
If You Use the Mileage Allowance Method
Under AMAP, vehicle running costs are already included. However, you can still claim the following separately:
- Vehicle licence (road tax) — the business portion, if not 100% business use
- Parking fees incurred while working (not fines)
- Toll charges (Dartford, QE2 bridge, etc.) paid during business trips
Everything else — fuel, insurance, tyres, servicing — is already captured by the 45p/25p rate.
If You Use the Actual Costs Method
You can claim a business-use proportion of:
- Fuel — keep receipts; calculate the business percentage of total mileage
- Car insurance — commercial/hire-and-reward insurance (or the business proportion of a mixed policy)
- Servicing & repairs — MOT, oil changes, tyres, bodywork
- Road tax (Vehicle Excise Duty)
- RAC / AA membership
- Car wash & valeting — essential for a professional presentation
- Capital allowances on the vehicle purchase (complex — seek accountant advice for the first year)
Phone & Data Costs
The Uber driver app is central to your business — which makes your mobile phone and data plan a legitimate expense. You can claim the business-use percentage of your monthly bill. If you use your phone 70% for work and 30% personally, you claim 70% of the cost. If you have a dedicated business-only handset, you claim 100%.
Keep your monthly bills and note in your records how you calculated the business percentage.
Licensing & Regulatory Costs
These are 100% business costs and fully deductible:
- TfL private hire licence (London) or council PHV licence (outside London)
- DBS (Disclosure and Barring Service) check — required for licensing renewal
- Medical examination fees — if required by your licensing authority
- Taxi/private hire licence plate fees
Platform Fees & Commissions
Uber charges a service fee (typically 20–30% of fares) before passing the rest to you. Your Uber earnings statements will show your gross fares and the deducted commission. You must declare your gross fares as income — but the commission Uber takes is a fully allowable business expense that reduces your taxable profit.
Other Allowable Business Costs
- Accountancy fees — the cost of an accountant or tax software to prepare your Self Assessment is fully deductible
- Business banking fees — monthly charges on a dedicated business current account
- Sat-nav & dashcam — equipment used wholly for business; claim the full cost or capital allowances depending on the amount
- Protective equipment — COVID-related face masks, hand sanitiser, or screen separators procured for business use
- Refreshments at work — HMRC does not allow meals while working locally. However, if you travel away from your normal base overnight, subsistence costs may be claimable. This is a grey area — take professional advice.
What You Cannot Claim
⚠ Not Allowable
HMRC specifically disallows: parking fines and penalty charges; the personal-use portion of any mixed expense; clothing that could be worn outside of work (a plain suit is not a uniform); commuting costs from your home to a permanent workplace (though for rideshare drivers, the vehicle is the workplace, so this is less relevant).
See How Much You Could Save
Enter your mileage and expenses into our free HMRC-accurate calculator to see your estimated take-home pay and mileage relief in seconds.
Open Free Tax Calculator →Frequently Asked Questions
Can Uber drivers claim fuel as a tax expense?
Yes — but you must choose between claiming actual fuel costs (actual costs method) or using the HMRC mileage allowance (45p/mile). You cannot do both for the same vehicle. Most drivers find the mileage allowance simpler and more generous.
Can I claim my car insurance as an Uber driver?
Yes, the business-use portion of your hire-and-reward insurance is a fully allowable expense. If you use the actual costs method, apportion the premium by your business vs personal mileage ratio.
Is the Uber service commission tax deductible?
Yes. The commission Uber deducts before paying you is a legitimate business expense. Always declare your gross fares as income and deduct the commission as an expense. Your Uber earnings statements will show both figures.
Do I need receipts for all expenses?
HMRC requires you to keep records to support your expenses claims. Digital photos of receipts are acceptable. For mileage, a contemporaneous mileage log (date, start/end odometer, purpose of journey) is essential. Keep all records for at least 5 years after the relevant filing deadline.