What Can You Claim on Your Taxes for Uber in the UK? (2026/27)

Operating as an Uber driver means you are running a self-employed business. Consequently, you pay Income Tax and National Insurance only on your net trading profits, rather than your gross fare receipts.

To minimise your tax bill for the 2026/27 tax year, you must accurately deduct your allowable business expenses. If you are wondering “what can you claim on your taxes for Uber in the UK?”, the answer requires applying the statutory “wholly and exclusively” test to your vehicle and administrative costs, alongside navigating new digital reporting deadlines.

The General Expense Rule (“Wholly and Exclusively”)

The foundation of all self-employed tax deductions sits within section 34 of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005). To deduct an expense, you must incur it wholly and exclusively for the purposes of your driving trade.

However, because most Uber drivers use their personal vehicles and mobile phones for both work and private life, section 34(2) provides a crucial carve-out allowing you to claim a proportionate share of dual-purpose expenses:

“(2) If an expense is incurred for more than one purpose, this section does not prohibit a deduction for any identifiable part or identifiable proportion of the expense which is incurred wholly and exclusively for the purposes of the trade.”

Claiming Vehicle Expenses (Two Methods)

Your car is your largest expense. You must choose between two statutory methods to claim your vehicle costs. Once you select a method for a specific vehicle, you must use it consistently for as long as you use that vehicle for your business.

Method 1: Simplified Mileage Rates

Under section 94D of ITTOIA 2005, you can claim a flat-rate deduction based on your business mileage instead of tracking every individual car receipt.

For the 2026/27 tax year, the simplified mileage rates remain:

• 45p per mile for the first 10,000 business miles.
• 25p per mile for every business mile thereafter.

If you use this method, the flat rate covers all your acquisition, ownership, hire, leasing, and general running costs (fuel, insurance, road tax).  You cannot claim these costs separately. However, you can still claim for incidental travel expenses like parking fees and road tolls incurred while driving passengers.

Method 2: Actual Apportioned Costs

If you choose not to use the simplified mileage rate, you can claim the actual costs of running your vehicle, apportioned for business use based on your mileage logs. HMRC guidance in the Business Income Manual (BIM37600) confirms this approach:

“You should allow the actual costs of any trade journeys (ie fuel, tolls, parking fees etc). You should also allow a proportion of the licence, insurance (provided the insurance covers business use), repairs, finance costs, etc.”

Under this method, if you drive 30,000 miles a year and 20,000 of those are for Uber, you claim a 66% business proportion of your overall vehicle fixed costs (such as servicing, MOTs, and insurance) and your actual business fuel costs.

A Note on Capital Allowances for Electric Vehicles (EVs)

If you purchase a vehicle and use the “Actual Costs” method, you claim the cost of the car itself via Capital Allowances. Historically, drivers buying zero-emission electric vehicles benefited from a 100% First Year Allowance (FYA), allowing them to deduct the entire cost in year one.

However, this 100% FYA for zero-emission cars expired on 5 April 2026 for income tax purposes.  Therefore, if you buy an EV during the 2026/27 tax year, you must claim capital allowances using standard Writing Down Allowances (WDA)—typically 18% (main pool) or 6% (special rate pool), depending on the exact emissions profile, apportioned for private use.

Other Deductible Uber Expenses

Beyond the vehicle itself, several other operational expenses are deductible against your Uber income:

• Uber Service Fees (Commission): Uber deducts a service fee (usually around 25%) from your gross fares. You must report your gross earnings as your turnover, and deduct the Uber commission as a business expense. Because this fee strictly relates to generating your trade income, it is 100% deductible under section 34 ITTOIA 2005.
• PHV Licensing and Insurance: Private Hire Vehicle (PHV) licenses, medical exams required for the license, and specialist hire-and-reward insurance are mandatory to operate. You can claim the apportioned business percentage of your insurance, and 100% of the licensing fees directly related to your trade.
• Cleaning and Maintenance: The costs of car washes, interior valeting, and repairs are deductible. If you use the actual cost method, apportion these based on business use.
• Mobile Phone and Data: You need a smartphone and data to use the Uber driver app. If you use the same phone for personal use, you must identify the business proportion of your monthly bill and deduct only that identifiable part under section 34(2) ITTOIA 2005.

The 2026/27 Digital Reporting Rules (MTD for ITSA)

For the 2026/27 tax year, how you claim these expenses changes drastically if you are a high earner.

From 6 April 2026, the government mandates Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) for sole traders (including Uber drivers) whose total qualifying income exceeds £50,000.

If your gross Uber income (combined with any other self-employed or property income) breaches this £50,000 threshold, you can no longer simply submit one tax return at the end of the year. You must maintain digital records using compatible software and submit quarterly updates to HMRC.  The quarterly deadlines for 2026/27 are:

• 7 August 2026
• 7 November 2026
• 7 February 2027
• 7 May 2027

If your income remains below £50,000 for 2026/27, you remain under the traditional Self Assessment system (though the threshold drops to £30,000 in April 2027).

Summary Table: Uber Driver Tax Deductions (2026/27)

Next steps: Ensure your mileage tracking or receipt capture system is MTD-compatible if you anticipate grossing over £50,000 this tax year, as failing to meet the new quarterly filing deadlines starting 7 August 2026 will result in late filing penalties.