An accountant for taxi and private hire drivers.

Costs drivers commonly claim

• Fuel or charging, servicing, repairs and tyres
• Vehicle insurance and breakdown cover
• Licence, badge and plate fees
• Radio, app and circuit fees
• Cleaning, parking and tolls

Where a cost is partly personal, only the business share counts.

Actual costs or mileage rate?

Many self-employed drivers can choose a flat mileage rate instead of tracking every vehicle cost. Cars designed for commercial use, such as black cabs and hackney carriages, are excluded from that option, so they claim actual costs. If you’re not sure which applies to your vehicle, ask us before you choose.

Keep the records

Bank statements, app earnings statements and receipts are what we work from. If you take cash fares, a simple record of takings helps.

VAT

VAT registration is required once your taxable turnover in a 12-month period goes over £90,000. Tell us if you’re getting near it.

Tax and National Insurance

You pay Class 4 National Insurance of 6% on profits between £12,570 and £50,270, and 2% above that (2026 to 2027). Class 2 is no longer compulsory. Making Tax Digital for Income Tax applies to self-employed income over £50,000 from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028. If it applies to you, you send HMRC short updates each quarter.