If you drive a taxi, private hire vehicle, or work through a platform like Uber or Bolt, you almost certainly need to file a self assessment tax return with HMRC every year. It's one of those things most drivers know they should be doing — but the process can feel overwhelming if nobody's walked you through it.
This guide covers everything you need to know, in plain English.
Do I need to file a self assessment?
If you're self-employed as a driver and you earn more than £1,000 in a tax year, yes — you need to file a self assessment. This applies to:
- Uber, Bolt, and other platform drivers
- Licensed private hire and minicab drivers
- Hackney carriage (black cab) drivers
- Drivers working for minicab firms as self-employed contractors
If you also have a PAYE job and you drive on the side, you still need to file — HMRC needs to know about all your income sources.
Key deadlines you can't miss
The tax year runs from 6 April to 5 April. For the 2025/26 tax year (which ended 5 April 2026):
- 5 October 2026 — Deadline to register for self assessment if you haven't already
- 31 October 2026 — Deadline for paper returns (if filing by post)
- 31 January 2027 — Deadline for online returns and payment of any tax owed
Miss the 31 January deadline and HMRC automatically charges a £100 penalty, even if you don't owe any tax. After 3 months, daily penalties of £10 start adding up. Don't risk it.
Registering with HMRC
If this is your first time filing, you need to register for self assessment first. You can do this through the HMRC website.
HMRC will send you a Unique Taxpayer Reference (UTR) number in the post — this can take up to 10 working days. You need your UTR to file your return, so register early.
You'll also need a Government Gateway account to file online. If you don't have one, you can create it on the HMRC website.
What income do I need to include?
You need to include all your taxable income from driving. This means:
Platform income: Your total earnings from Uber, Bolt, or any other app — not just what was transferred to your bank account. Your annual summary from the platform is the right figure to use.
Cash fares: Any cash you received directly from passengers. HMRC expects you to keep records, so a simple log (date, approximate amount) is helpful.
Tips: These are technically taxable if they come from the platform or employer. Tips given directly by passengers in cash are treated differently — ask us if you're unsure.
Other income: If you rent your cab out to other drivers, that's income too.
What expenses can I deduct?
This is where a lot of drivers miss out. There are significant expenses you can legitimately offset against your income, which reduces your tax bill.
The most common ones for taxi and PHV drivers are:
- Vehicle costs — mileage allowance or actual costs (fuel, servicing, repairs, insurance, road tax)
- Licensing fees — your private hire licence and vehicle licence fees
- Platform commissions — the cut that Uber, Bolt, or your operator takes is a deductible expense
- Phone and data — the business proportion of your mobile phone bill
- Cleaning and valeting — keeping the cab clean for passengers
- Accountancy fees — yes, our £99 fee is itself tax deductible
We cover all of this in more detail in our expenses guide.
The mileage question
One of the trickiest parts is working out business mileage versus personal mileage.
HMRC's simplified mileage rate for cars is 45p per mile for the first 10,000 business miles in a year, then 25p per mile after that.
For most taxi drivers, virtually all mileage is business mileage. But HMRC does expect you to separate out personal journeys (like driving to the shops or taking the kids to school), so keeping a basic mileage log throughout the year makes life much easier.
What records should I keep?
HMRC can ask to inspect your records for up to 5 years after the filing deadline, so it's worth keeping:
- Bank statements
- Annual summaries from any platforms you drive for
- Receipts for significant expenses (insurance, licensing, servicing)
- A mileage log (even an approximate one)
You don't need to send these to HMRC when you file — but you need to have them if they ever ask.
Payment on account
One thing that catches first-time filers off guard: if your tax bill is over £1,000, HMRC asks you to make payments on account — advance payments towards next year's bill. These are due on 31 January and 31 July.
This means your first tax bill can feel very large, because you're effectively paying for 18 months of tax in one go. It's worth knowing about this early so it doesn't come as a shock.
How TaxiCab Accountants can help
If all of this sounds like a lot to deal with — that's exactly why we exist.
For £99, we handle your complete HMRC self assessment from start to finish. You fill in a simple form telling us about your year, and we do the rest: calculating your expenses, preparing your return, filing with HMRC, and sending you the confirmation.
Most drivers spend less than 20 minutes on their end. We do the rest.