Tax Tips for Self-Employed Drivers in the UK

As a self-employed driver in the UK, you're responsible for your own taxes. Proper record-keeping and understanding your obligations makes tax time much easier.

*Note: This article provides general guidance. Consult a qualified accountant for advice specific to your situation.*

Record Keeping Requirements

HMRC requires self-employed individuals to keep records of:

• All income
• All business expenses
• Supporting documentation

Records must be kept for at least 5 years after the tax year they relate to.

Income to Track

Record all your driving income:

• App-based fares (Uber, Bolt, etc.)
• Private hire work
• Tips received
• Any bonuses or incentives

A good trip tracking app captures all of this automatically.

Allowable Expenses

Self-employed drivers can typically claim:

Vehicle Costs

• Fuel
• Insurance
• Maintenance and repairs
• Vehicle finance interest (not capital)
• Depreciation

Operating Costs

• Phone and data plan (business portion)
• Licensing fees
• Platform subscriptions
• Satnav or mapping apps

Administrative

• Accounting fees
• Business software
• Bank charges on business accounts

Simplified Expenses Option

For vehicle costs, HMRC offers simplified mileage rates:

• First 10,000 miles: 45p per mile
• Additional miles: 25p per mile

This can be simpler than tracking actual expenses, but may be less beneficial depending on your situation.

Making Tax Returns Easy

Track Throughout the Year

Don't wait until January to gather records. Use an app to track earnings as you go.

Keep Digital Records

Digital records are easier to search, analyse, and provide to HMRC if needed.

Review Monthly

Monthly reviews help catch issues early and keep you aware of your tax position.

Export When Needed

TripRecord lets you export your trip data for your accountant or self-assessment.

Planning Ahead

Remember to set aside money for:

• Income tax
• National Insurance contributions
• Payment on account (if applicable)

Knowing your earnings accurately helps you plan.

Start tracking properly with TripRecord's free trial.