Uber driving is a great side hustle, but tax is complicated. We debunk and inform you about Uber driver tax and help you to understand your responsibilities.
Driving for Uber offers you the flexibility and freedom to work and get paid on your own terms, but because you are self-employed, navigating Uber driver tax can be stressful, confusing, and a real hassle.
Uber drivers have responsibility for managing their own taxes because they are independent contractors, which means you have to keep track of your expenses, Uber pay, and prepare and file a tax return each tax year.
Understanding Uber driver tax responsibilities and the implications of not following the rules is important and will ensure you avoid late filing penalties, fines, and interest charges.
This guide will give you all the information you need to navigate Uber driver tax requirements, including what expenses you can deduct, how to keep track of your income, and how to file your tax return on time.
This will mean that you minimise your tax liability and ensure that you are fully compliant with your tax responsibilities, making your life as an Uber driver as stress-free as possible.
Uber Driver Tax
Do I need to pay tax as an Uber driver?
Yes, if you earn more than £1000 per tax year, you have to pay tax. The £1000 trading allowance applies to any income you earn as an Uber driver, and once you go over that threshold, you need to register as self-employed with HM Revenue & Customs and file a self-assessment tax return each year.
How much tax will I need to pay as an Uber driver?
This is a difficult question to answer because it can depend on many factors:
Pay and expenses: the more you earn as an Uber driver, the more you are likely going to have to pay. However, the good news is that you can deduct Uber driver expensesfrom your income before calculating how much tax is due. By deducting expenses from your Uber pay, you will reduce the amount of tax you pay.
National Insurance: Also, as a self-employed Uber driver, you may also need to pay Class 2 and Class 4 National Insurance contributions.
Other income: if you have another job, this will affect the overall amount of tax you pay on your Uber pay.
As you can see, understanding Uber tax and pay are a little complicated and very confusing, so I would recommend that you also speak to an accountant for help who debunk and answer any questions you may have.
What expenses can an Uber driver claim?
In the UK, Uber drivers can claim tax relief on expenses related to the work they do, which include things such as:
Car cleaning, including valet charges and cleaning products
Vehicle repairs and maintenance, including MOTs and servicing
Car insurance
Congestion charges and parking fees
Road tax
Petrol and diesel
Vehicle depreciation
Mobile phone monthly fees
Accountancy fees
Bank charges
This is not a complete list of expenses Uber drivers can claim on their tax return. It is always good to speak to an accountant to make sure that you claim for all expenses possible to maximise your tax relief.
Do I need to register for self-assessment as an Uber driver?
If you earn over £1000 in the tax year (6 April until 5 April the following year), then you will need to register for self-assessment with HM Revenue and Customs as an Uber driver. Be aware that not registering may result in fines and penalties.
If, however, you only drive with Uber occasionally, earn under £1000, and have no other self-employed income, then you do not need to register for self-assessment.
As an Uber driver, you are required to register for self-assessment by October 5th of your second tax year (6th April–5th April) when driving for Uber, for example:
You start driving for Uber in August 2024, which falls within the tax year 2024.
What is the deadline for filing a tax return for my Uber driver pay?
Once you have registered for self-assessment, it is likely that the next thing on your to-do list is to prepare and file a tax return for your Uber driver pay.
A self-assessment tax return is a document Uber drivers pay and expenses get recorded on, and it is used to work out how much tax you need to pay. This approach is used as a way of recording income and calculating tax that might be due for people who are not employed by an employer.
When you are employed, you pay tax through the normal PAYE system, which your employer manages. Self-employed Uber driver pay is different because you are not employed, and therefore you must declare your income and tax yourself.
Online self-assessment tax return
The deadline for filing your online self-assessment tax return with HMRC is January 31st the following year, after the tax year closes. For example, if you started driving for Uber in October 2023, which falls within the tax year 2023/2024, you must file your tax return by January 31st, 2025, and, most importantly, pay any tax that might be due.
A paper self-assessment tax return
If you intend to file a paper tax return, the deadline for doing so is October 31st, after the tax year closes. For example, if you started driving for Uber in October 2023, which falls within the tax year 2023/2024, you must file your paper tax return by October 31st, 2024.
Key Points
Once you earn more than £1000 from Uber, you are required to be registered as self-employed.
By deducting expenses from your taxable Uber pay, you can reduce the amount of tax you pay.
Uber drivers can claim expenses such as fuel, mobile phone bills, and car cleaning, to name a few.
You are required to register for self-assessment by October 5th of your second tax year as an Uber driver.
You must file your paper self-assessment tax return by October 31st.
The deadline for filing your online self-assessment tax return is January 31st.
FAQ’s about Uber driver tax
Best tax service for Uber drivers?
The best tax service for Uber driver is Ugo Tax Accountancy who provide services such as self-employment registration and tax return filing for drivers working for Uber.
I am concerned about making a mistake on my tax return, what should I do?
Preparing and filing your own tax return can be a challenge and very stressful if you don’t know what you are doing. You may also receive a fine from HMRC if you fail to include all your income or do not claim the correct expenses. It is therefore a good idea to contact an accountant who will help.
How can I reduce the amount of tax I pay on my Uber income?
The best way to reduce the amount of tax you owe from your Uber driver’s pay is to ensure you declare all of your allowable expenses. Keeping records is important here, as you can easily forget expenses throughout the year. Another way to reduce the amount of tax you pay is to speak with an accountant who can help with filing your self-assessment tax return.
Does Uber report to HMRC?
Yes, from January 31st, 2024, Uber will start reporting drivers’s income to HMRC, which means they have access to information about your earnings as an Uber driver. This means that it is so much more important to accurately declare your income and expenses on your tax return.
Can I file my tax return early with HMRC?
The deadline for filing your online self-assessment tax return is January 31st, after the tax year closes on April 5th, and it is recommended that you file your tax return before this date. Submitting your tax return early means that you avoid rushing and filing late, which can lead to a fine, but it also means you included all of your expenses, minimising the amount of tax you pay.
Disclaimer
We do not provide accounting, tax, business, or legal advice, and this article has been created for informational purposes only. You should consult your own professional tax advisors for advice and support.
ugoscootersblog.com 
Driving for Uber offers you the flexibility and freedom to work and get paid on your own terms, but because you are self-employed, navigating Uber driver tax can be stressful, confusing, and a real hassle.
Uber drivers have responsibility for managing their own taxes because they are independent contractors, which means you have to keep track of your expenses, Uber pay, and prepare and file a tax return each tax year.
Understanding Uber driver tax responsibilities and the implications of not following the rules is important and will ensure you avoid late filing penalties, fines, and interest charges.
This guide will give you all the information you need to navigate Uber driver tax requirements, including what expenses you can deduct, how to keep track of your income, and how to file your tax return on time.
This will mean that you minimise your tax liability and ensure that you are fully compliant with your tax responsibilities, making your life as an Uber driver as stress-free as possible.
Uber Driver Tax
Do I need to pay tax as an Uber driver?
Yes, if you earn more than £1000 per tax year, you have to pay tax. The £1000 trading allowance applies to any income you earn as an Uber driver, and once you go over that threshold, you need to register as self-employed with HM Revenue & Customs and file a self-assessment tax return each year.
How much tax will I need to pay as an Uber driver?
This is a difficult question to answer because it can depend on many factors:
Pay and expenses: the more you earn as an Uber driver, the more you are likely going to have to pay. However, the good news is that you can deduct Uber driver expenses from your income before calculating how much tax is due. By deducting expenses from your Uber pay, you will reduce the amount of tax you pay.
National Insurance: Also, as a self-employed Uber driver, you may also need to pay Class 2 and Class 4 National Insurance contributions.
Other income: if you have another job, this will affect the overall amount of tax you pay on your Uber pay.
As you can see, understanding Uber tax and pay are a little complicated and very confusing, so I would recommend that you also speak to an accountant for help who debunk and answer any questions you may have.
What expenses can an Uber driver claim?
In the UK, Uber drivers can claim tax relief on expenses related to the work they do, which include things such as:
This is not a complete list of expenses Uber drivers can claim on their tax return. It is always good to speak to an accountant to make sure that you claim for all expenses possible to maximise your tax relief.
Do I need to register for self-assessment as an Uber driver?
If you earn over £1000 in the tax year (6 April until 5 April the following year), then you will need to register for self-assessment with HM Revenue and Customs as an Uber driver. Be aware that not registering may result in fines and penalties.
If, however, you only drive with Uber occasionally, earn under £1000, and have no other self-employed income, then you do not need to register for self-assessment.
As an Uber driver, you are required to register for self-assessment by October 5th of your second tax year (6th April–5th April) when driving for Uber, for example:
You start driving for Uber in August 2024, which falls within the tax year 2024.
What is the deadline for filing a tax return for my Uber driver pay?
Once you have registered for self-assessment, it is likely that the next thing on your to-do list is to prepare and file a tax return for your Uber driver pay.
A self-assessment tax return is a document Uber drivers pay and expenses get recorded on, and it is used to work out how much tax you need to pay. This approach is used as a way of recording income and calculating tax that might be due for people who are not employed by an employer.
When you are employed, you pay tax through the normal PAYE system, which your employer manages. Self-employed Uber driver pay is different because you are not employed, and therefore you must declare your income and tax yourself.
Online self-assessment tax return
The deadline for filing your online self-assessment tax return with HMRC is January 31st the following year, after the tax year closes. For example, if you started driving for Uber in October 2023, which falls within the tax year 2023/2024, you must file your tax return by January 31st, 2025, and, most importantly, pay any tax that might be due.
A paper self-assessment tax return
If you intend to file a paper tax return, the deadline for doing so is October 31st, after the tax year closes. For example, if you started driving for Uber in October 2023, which falls within the tax year 2023/2024, you must file your paper tax return by October 31st, 2024.
Key Points
FAQ’s about Uber driver tax
Best tax service for Uber drivers?
The best tax service for Uber driver is Ugo Tax Accountancy who provide services such as self-employment registration and tax return filing for drivers working for Uber.
I am concerned about making a mistake on my tax return, what should I do?
Preparing and filing your own tax return can be a challenge and very stressful if you don’t know what you are doing. You may also receive a fine from HMRC if you fail to include all your income or do not claim the correct expenses. It is therefore a good idea to contact an accountant who will help.
How can I reduce the amount of tax I pay on my Uber income?
The best way to reduce the amount of tax you owe from your Uber driver’s pay is to ensure you declare all of your allowable expenses. Keeping records is important here, as you can easily forget expenses throughout the year. Another way to reduce the amount of tax you pay is to speak with an accountant who can help with filing your self-assessment tax return.
Does Uber report to HMRC?
Yes, from January 31st, 2024, Uber will start reporting drivers’s income to HMRC, which means they have access to information about your earnings as an Uber driver. This means that it is so much more important to accurately declare your income and expenses on your tax return.
Can I file my tax return early with HMRC?
The deadline for filing your online self-assessment tax return is January 31st, after the tax year closes on April 5th, and it is recommended that you file your tax return before this date. Submitting your tax return early means that you avoid rushing and filing late, which can lead to a fine, but it also means you included all of your expenses, minimising the amount of tax you pay.
Disclaimer
We do not provide accounting, tax, business, or legal advice, and this article has been created for informational purposes only. You should consult your own professional tax advisors for advice and support.
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