Platform commission, fuel, PHV licences & cleaning — tracked in one app
Pay your hire-and-reward insurance. Renew the council PHV vehicle & driver licence. Clean the car after every shift. Report gross fares — claim back commission. All in one place.
Huge turnover, tight margins — and HMRC now sees your gross earnings directly
A typical UK full-time Uber or Bolt private-hire driver invoices £35,000-£55,000 in gross fares — but takes home only £18,000-£26,000 of profit after platform commission, fuel, hire-and-reward insurance, PHV licences, MOT, cleaning and depreciation. Since 1 January 2024 the platforms report your gross earnings directly to HMRC under the Digital Platforms Reporting Rules — so the figure on your tax return must match what Uber and Bolt have already told them.
What PocketReceipt tracks for private-hire drivers
Platform commission
Uber 25% service fee, Bolt 15-25%, Free Now booking fees, Ola commission. The second-biggest line on your return.
Fuel & mileage
Actual fuel receipts or simplified mileage (55p / 25p). PocketReceipt calculates both so you pick the bigger claim.
PHV licences & tests
Council PHV vehicle licence, PHV driver licence, topographical test, English language test, DBS Update Service.
Hire-and-reward insurance
Annual premium (£1,500-£2,500 typical), public liability, breakdown cover. Categorised automatically.
MOT, servicing & cleaning
6-monthly PHV MOT, scheduled servicing, tyres, weekly valeting. All allowable under actual-cost method.
Dashcam & in-car kit
Dashcam, phone mounts, in-car chargers, payment terminal (if you take card direct). Capital-allowance flagged.
A typical Uber / Bolt driver's week, tracked
- Monday — fuel up the car, snap the petrol receipt
- Wednesday — interior valet after a long weekend, scan receipt
- Thursday — pay weekly hire-and-reward instalment, statement saved
- Friday — book onto the council's annual PHV vehicle inspection, pay fee
- Sunday — download Uber + Bolt weekly summaries to reconcile against bank
- End of month — export categorised summary, send to accountant
Allowable expenses for self-employed Uber & Bolt drivers
HMRC lets you deduct any cost that is wholly and exclusively for your private-hire business. The table below maps a typical Uber or Bolt driver's spend to the boxes on SA103F (self-employment full pages). The two biggest single lines are usually the vehicle running costs (mileage or actual costs) and platform commission. You can choose simplified mileage (55p / 25p) OR actual vehicle costs — not both on the same vehicle.
| Expense | Claim? | SA103F box | Notes |
|---|---|---|---|
| Platform commission — Uber service fee (~25%), Bolt commission (15-25%), Free Now booking fees, Ola | Yes | Box 30 — Other business expenses | Report GROSS fares as turnover (Box 15), then claim commission separately. Don't report only the net amount that hits your bank — that fails the digital platforms reporting reconciliation. |
| Simplified mileage (55p first 10,000 mi, 25p after) | Yes (option 1) | Box 20 — Car, van and travel expenses | Easiest method — covers fuel, insurance, MOT, repairs, depreciation. A full-time driver doing 40,000 business miles claims £13,000. Cannot also claim capital allowances on the vehicle. |
| Actual fuel — petrol, diesel, electric charging at home (business %) | Yes (option 2) | Box 20 | Use actual fuel receipts instead of simplified mileage. Apportion by business %. |
| Hire-and-reward + public liability insurance (annual premium) | Yes (under actual-cost only) | Box 21 — Rent, rates, power and insurance costs | £1,500-£2,500 a year typical for private-hire. Cannot be claimed separately if you use simplified mileage — it's bundled into the 55p / 25p rate. |
| MOT (PHV class — every 6 months in many councils), servicing, tyres, repairs | Yes (under actual-cost only) | Box 22 — Repairs and maintenance of property and equipment | Bundled into simplified mileage rate. Only claim separately if using actual costs. |
| Vehicle cleaning & valeting — interior shampoo, sick clean-up, weekly washes | Yes (under actual-cost only) | Box 22 | Bundled into simplified mileage. Only claim separately if using actual costs. £15-£25 a week is typical. |
| Vehicle finance / lease interest (business proportion) | Yes (under actual-cost only) | Box 26 — Bank, credit card and other financial charges | The interest element of a vehicle PCP / HP / lease — only the business proportion. |
| Vehicle Writing Down Allowance (cars excluded from AIA) | Yes (under actual-cost only) | Box 50–54 (capital allowances) | Cars cannot use Annual Investment Allowance. Use Writing Down Allowance: 18% main pool (CO2 ≤ 50g/km) or 6% special rate. 100% First Year Allowance for new zero-emission cars purchased before 31 March 2026. |
| Council PHV vehicle licence fee (annual) | Yes | Box 30 | Council licence on the vehicle for use as a private-hire vehicle. Typically £150-£400 a year depending on council. |
| Council PHV driver licence (typically 3-yearly, amortise) | Yes | Box 30 | The licence that lets you drive a PHV. Typically £200-£300 for 3 years — claim a third each year. |
| DBS Update Service, topographical / English-language test | Yes | Box 30 | Mandatory checks for PHV driver licensing. DBS Update Service is £13 a year. Topographical and language tests vary by council. |
| Medical certificate (Group 2 / D4 medical) for PHV driver licence renewal | Yes | Box 30 | £60-£90 typical. Required by most councils every few years. |
| Dashcam, phone mount, in-car chargers, jump pack, payment terminal | Yes | Box 49 — Annual Investment Allowance / cash basis expense | Accessories used inside the vehicle — these are equipment, not motor running costs, so claimable separately to simplified mileage. |
| Mobile phone bill — business proportion (typically 70-90% for a full-time driver) | Partly | Box 23 — Phone, fax, stationery and other office costs | The phone runs the app, navigation and customer messages all day. |
| Mobile data plan / 4G booster for the car | Yes | Box 23 | Separate data SIM dedicated to the car — fully allowable. |
| PHV roundel / vehicle signage required by the council | Yes | Box 30 | Council-mandated identification (e.g. TfL roundel) is an allowable trade cost. |
| Trade body or union subscription (GMB, App Drivers & Couriers Union) | Yes | Box 30 | Listed by HMRC as an example of allowable trade subscriptions. |
| Accountant or bookkeeper fee | Yes | Box 28 — Accountancy, legal and other professional fees | Including the cost of preparing your Self Assessment. |
| Working from home flat rate (admin, weekly reconciliation, returns) | Yes | Box 21 | £10 / £18 / £26 a month for 25–50 / 51–100 / 101+ hours business use. Most full-time drivers can defend the £10 / £18 tier. |
| Cash tips received from passengers | Income, not expense | Box 15 — Turnover | HMRC treats tips and gratuities as taxable earnings. Declare them as part of turnover, not as a separate line. |
| Bottled water, sweets, phone chargers offered to passengers | No | — | HMRC treats refreshments offered to customers as client entertainment, which is never allowable. |
| Your own meals and coffee during the working day | No | — | Subsistence is only allowable on overnight trips away from your normal working area. |
| Initial driving lessons or training to pass the topographical test | No | — | Initial qualifying training to enter the profession is treated as preparing to trade — not allowable. |
| Plain trousers, shirts, smart shoes — even if required by the council | No | — | HMRC: "you cannot claim for everyday clothing (even if you wear it for work)." |
| Parking fines, speeding fines, council penalties | No | — | Fines are never allowable. |
Box numbers from HMRC SA103F Notes 2026. If your gross turnover is under £90,000 you can use the shorter SA103S — boxes 11–19 map to the same expense categories, with Box 23 for AIA.
Tariq, a Birmingham Uber & Bolt PHV driver — £42,000 gross turnover
The setup
Tariq is 38, lives in Birmingham and works full-time on Uber and Bolt with a 2021 Toyota Prius. He drives 40,000 business miles a year (plus 2,000 personal). His council PHV vehicle licence is £200 a year and his driver licence cost £270 for 3 years (£90 a year amortised). He pays £1,800 for his hire-and-reward insurance. He uses the simplified-mileage method — although he's checked with his accountant that actual-cost is only £200-£400 better in his case and not worth the admin. Gross turnover reported by Uber and Bolt to HMRC for 2025-26: £40,000 in platform fares plus £2,000 of cash tips = £42,000 gross.
What he claims at year end
Tracked through PocketReceipt across the year:
The maths
Gross turnover £42,000 minus £23,250 of expenses leaves a taxable profit of £18,750. After the £12,570 personal allowance, £6,180 falls in the basic-rate band. Income Tax at 20% is £1,236. Class 4 NICs at 6% on profits between £12,570 and £50,270 add £371. Total tax due: £1,607.
What it would have cost without the records
If Tariq had reported only what hit his bank (£40,000 net of commission, £42,000 with tips) and missed half the licences, the phone apportionment and the dashcam — his expenses would drop to about £12,400. Taxable profit would jump to £29,600. Income Tax would be £3,406 and Class 4 NICs £1,022, total £4,428. The records save him £2,821 a year — most of the gap is the platform commission (which only counts if you report gross), the PHV licence amortisation and the mobile phone.
MTD ITSA — Tariq is caught from April 2027, no matter his profit
The MTD ITSA threshold uses gross income (turnover before expenses), not profit. Tariq's £42,000 gross puts him over the £30,000 threshold from 6 April 2027. He's in scope even though his profit is well under £20,000.
From 6 April 2026 anyone with gross self-employment + property income over £50,000 must file 5 times a year instead of 1: four quarterly cumulative updates (due 7 August, 7 November, 7 February and 7 May) plus a Final Declaration on 31 January. The threshold drops to £30,000 from 6 April 2027 (catching Tariq and most full-time private-hire drivers) and £20,000 from 6 April 2028 (catching almost every Uber or Bolt driver in the country). The qualifying-income test uses the previous tax year's Self Assessment. Once in, you can only opt out again after 3 consecutive tax years below the threshold.
Common tax mistakes UK Uber & Bolt drivers make
- Reporting only what hit the bank (net of commission) as turnoverUber and Bolt report your GROSS fares to HMRC. If you only report the net, HMRC's data won't reconcile and you've under-stated turnover. The right way: report gross fares as turnover (Box 15), then claim platform commission as a separate expense (Box 30). The tax owed is the same; the reconciliation passes.
- Thinking MTD ITSA is about profit, not turnoverThe £50k / £30k / £20k MTD thresholds are tested against GROSS turnover, not profit. Most full-time drivers have £35k-£55k turnover and £18k-£26k profit. Looking at the profit number gives a false sense of safety — by gross turnover almost every full-time driver is caught from April 2027 or April 2028.
- Claiming insurance AND mileage on the same vehicleIf you use simplified mileage (55p / 25p), the rate already covers your insurance, MOT, fuel, repairs and depreciation. You can't double-claim them. If insurance alone is £2,000+, calculate ACTUAL costs and pick whichever method gives the bigger total.
- Claiming bottled water and sweets for passengersHMRC treats refreshments offered to customers as client entertainment — never allowable, even with a receipt.
- Forgetting platform commission as an expenseUber's 25% service fee on £40,000 of fares is £10,000 of expense you'd lose if you forget to claim it. The biggest single line on most private-hire tax returns.
- Mis-amortising the PHV driver licenceA 3-year £270 driver licence is £90 a year, not £270 in year one. Spread it.
- Cars treated as AIACars are explicitly EXCLUDED from the Annual Investment Allowance. Use Writing Down Allowance (18% main pool / 6% special rate) or the 100% First Year Allowance for new zero-emission cars purchased before 31 March 2026. Cash basis simplifies this — but if you switch to a new car, talk to your accountant.
- Not declaring tipsCash and in-app tips are taxable earnings. Declare them as part of turnover, not as a hidden separate line.
- Plain "smart" trousers and shoes claimed as council-required attireHMRC's rule is explicit: everyday clothing is never allowable, even if your council insists on smart dress.
- Missing the 5 October registration deadlineIf you started Uber / Bolt work in the 2025-26 tax year and earned over £1,000 you must register for Self Assessment by 5 October 2026. HMRC can charge a "failure to notify" penalty.
Year-end tax tips for Uber & Bolt drivers
- Reconcile Uber and Bolt annual statements before filingBoth platforms issue an annual summary in late spring. Pull both, add them, and compare to what you have in your records. The gross figure (before commission) is what HMRC has on file from the digital platforms reporting rules — your tax return must match.
- Calculate simplified mileage vs actual costs once a yearMost full-time drivers find one method materially better than the other. Mileage at 40,000 business miles = £12,000. Actual costs at 40,000 business miles in a £14k Prius typically £11,000-£13,000 depending on insurance premium and depreciation year. Pick the bigger total and stick with it for the whole tax year.
- Time vehicle replacement and big equipment purchasesA new dashcam, phone mount or in-car payment terminal bought before 5 April pulls the deduction into the current tax year (Box 49 under cash basis or AIA under traditional accounting).
- Pay PHV vehicle licence and insurance renewals before 5 AprilCouncil renewals and hire-and-reward insurance — pay before 5 April so the deduction lands in the current tax year.
- Check your Class 4 NIC band crossingFor 2025-26 Class 4 NICs are 6% on profits between £12,570 and £50,270, then 2% above. Most full-time drivers sit comfortably in the 6% band after expenses.
- Plan for MTD ITSA from 6 April 2027From 6 April 2027 drivers with gross income over £30,000 must file four quarterly cumulative updates plus a Final Declaration each year. From 6 April 2028 the £20,000 gross threshold catches almost every full-time Uber and Bolt driver. The qualifying-income test uses the previous tax year's return — your 2026-27 return decides whether you're in MTD scope for 2027-28.
- Set aside tax monthly, not annuallyA full-time driver with £42k gross and £20k profit owes around £1,900 in Income Tax and Class 4 NICs. That's roughly £160 a month — put it in a separate savings account weekly so it's not a shock in January.
FAQ for Uber & Bolt drivers
Am I self-employed for tax even though Uber treats me as a worker?
Yes. The 2021 Supreme Court ruling in Uber BV v Aslam classed UK Uber drivers as workers for employment-rights purposes (National Minimum Wage, holiday pay, pension auto-enrolment). For tax, you are still self-employed and must file a Self Assessment return — Uber and Bolt do not deduct income tax at source. The same applies to Bolt, Free Now and Ola.
Should I use simplified mileage (55p / 25p) or actual costs?
Most full-time private-hire drivers find ACTUAL costs better because the hire-and-reward insurance alone is £1,500-£2,500 a year and simplified mileage bundles insurance in. But simplified is much simpler to track. Calculate both for the year and pick the bigger total — you can only change methods when you change vehicles.
Does Uber or Bolt tell HMRC how much I earned?
Yes. Since 1 January 2024 digital platforms must report seller earnings to HMRC under the Digital Platforms Reporting Rules. Uber, Bolt, Free Now and Ola all report your GROSS earnings (fares before commission) to HMRC each year. Your tax return turnover must match. If you only report the net amount that reached your bank, HMRC's data won't reconcile and you may trigger an enquiry.
Can I claim my PHV vehicle and driver licence fees?
Yes. Council PHV vehicle licence, PHV driver licence, topographical test, DBS check, D4 medical and English-language test fees are all allowable. Spread the cost over the licence period — a 3-year driver licence costing £270 means £90 of expense each year.
What does MTD ITSA mean for me as an Uber or Bolt driver?
The MTD ITSA threshold uses GROSS income (turnover before expenses), not profit. Many private-hire drivers have £40,000-£50,000 turnover but £15,000-£25,000 profit — and wrongly think they're below the threshold. They are not. You're caught from 6 April 2026 with gross income over £50,000; from 6 April 2027 with gross over £30,000; from 6 April 2028 with gross over £20,000. In scope means 5 filings a year, not 1: four quarterly cumulative updates (7 August, 7 November, 7 February, 7 May) plus a Final Declaration on 31 January. The qualifying-income test uses the previous tax year's Self Assessment. Once in, you can only opt out after 3 consecutive tax years below the threshold.
When is my tax due?
Self Assessment for the 2025-26 tax year is due online by 31 January 2027. If your tax bill is more than £1,000 you also pay 50% as a first payment on account that day, and another 50% on 31 July 2027. Drivers above MTD thresholds also file quarterly cumulative updates from their relevant start date.
Can I switch between AMAP mileage and actual vehicle costs?
No — once you pick a method for a vehicle, you must stick with it for the life of that vehicle. AMAP (55p first 10,000 miles, 25p after) is simpler and usually wins for higher-mileage drivers. Actual costs can be better for a brand-new expensive car. Decide before your first SA filing for that vehicle.
Are tolls, congestion and ULEZ charges deductible?
Yes — paid road charges incurred during paid trips are 100% allowable on top of AMAP mileage. The AMAP rate covers running costs (fuel, wear), not road tolls. Keep the charge notices.
Uber/Bolt commission — do I declare gross or net income?
Always gross. The platform takes its commission before paying you, but for HMRC you declare what the rider paid (gross fare) and claim the platform commission as a separate expense. The monthly tax summary in the Uber/Bolt app shows both figures.
HMRC and PocketReceipt references used on this page
- HMRC, Expenses if you're self-employed — overview
- HMRC, Clothing expenses
- HMRC, Travel expenses — what's allowable
- HMRC, Simplified expenses — vehicles (55p / 25p / 24p flat rates)
- HMRC, Capital allowances on business cars (Writing Down Allowance & First Year Allowance)
- HMRC, Cash basis accounting (default since April 2024)
- HMRC, Self-employed National Insurance rates
- HMRC, Self Assessment deadlines
- HMRC, Register for Self Assessment (5 October following the tax year)
- HMRC, Selling goods or services on a digital platform (Uber, Bolt, Free Now, Ola reporting rules)
- HMRC, HMRC Tax Help for Hustles — driver tax guide
- HMRC, Making Tax Digital for Income Tax
- HMRC, Qualifying income for MTD ITSA (gross income, not profit)
- HMRC, SA103F Notes 2026 — Self-employment (full) (PDF)
- PocketReceipt, VAT threshold calculator · MTD Forecaster · Mileage calculator
- PocketReceipt, Sole-trader allowable expenses — full guide · MTD ITSA quarterly checklist
- PocketReceipt, Best receipt scanner apps compared (2026)
Worked example figures are illustrative. Tax rates use 2025-26 thresholds: personal allowance £12,570; basic-rate Income Tax 20%; Class 4 NICs 6% on profits between £12,570 and £50,270, 2% above. PocketReceipt is a record-keeping app, not a tax adviser — speak to an accountant for advice on your situation.