Tax Returns for Self-Employed Taxi Drivers: What You Need to Know

If you drive a taxi or private hire vehicle and work for yourself – including through an app or a local firm – HMRC treats you as self-employed. That means you need to file a Self Assessment tax return every year and pay tax on your profits.

Registering with HMRC

If you are new to self-employment, register for Self Assessment online at GOV.UK by 5 October after the end of the tax year in which you started. HMRC will send you a Unique Taxpayer Reference (UTR), which you will need for your return.

Key deadlines

• The tax year runs from 6 April to 5 April.
• Online tax returns and any tax due must reach HMRC by 31 January after the end of the tax year.
• If your tax bill is over £1,000, you may also need to make payments on account towards next year’s bill (31 January and 31 July).

See all the dates on our tax dates and deadlines page.

Expenses taxi drivers can claim

• Fuel, repairs, servicing, MOT, tyres and car washing
• Vehicle insurance and road tax
• Taxi or private hire licence fees and medical checks
• Operator, radio or app commission and booking fees
• Phone costs used for work
• Vehicle hire or lease costs

For your vehicle you can claim either the actual costs (plus capital allowances on the vehicle) or HMRC’s simplified mileage rates – 45p a mile for the first 10,000 business miles and 25p after that. You cannot claim both for the same vehicle, so it is worth checking which gives the better result before you choose.

Keep good records

Keep a record of your fares and every receipt, and a mileage log. From April 2026, sole traders with qualifying income over £50,000 must also keep digital records and send quarterly updates under Making Tax Digital.

Need help?

Accountancy N Tax Services is an accountancy practice in Wallington, run by an IFA Accredited Member in Public Practice, helping clients across London online or face-to-face. Your first consultation is free – call 020 7112 9098 or email info@accountancyntax.co.uk.