Do uber drivers pay taxes in the UK

How Do Uber Drivers Pay Taxes in the UK?

Are you the individual who is interested in joining the community of uber drivers in the UK? A community of 40000 strong individuals. However, the thoughts of wondering about how much you can make by working as an uber driver in the UK are bothering you. There is more for you to know that will tell you about ‘Do uber drivers pay taxes in the UK’. In this guide, you will gather information about everything you need to know how to become an uber driver in the UK, how beneficial is it, what is the status of tax for uber drivers, and what expenses you are allowed to deduct.


Get in touch with our professionals at Accotax, and discuss your queries about your tax payments as an uber driver. Give us a call on 02034411258 or request a callback.


Become an Uber Driver In The UK – The Requirements

The first and basic need to know in this matter is the process that you will follow to become an uber driver in the UK. The list of requirements that you need to consider to be eligible for working as an uber in  the UK includes the following listed points:

  • You are required to have your car that was manufactured not before the year 2008. However, it can be manufactured in later years.
  • You should have your private car licence.
  • Ignition programme by uber can even offer help to uber drivers to get one private car licence.
  • A UK driving licence is a must-have in this case.
  • In case you are an individual who owns an EU licence or any other foreign licence, you will be asked to get it exchanged with the UK licence immediately.
  • Your age must be at least 21 years or older than that.

Moreover, the work density will decide what is the amount of money that you while working as an uber driver in the UK. The more you will work, you will get the more amount of money in your earnings. You can be a part of uber books even if you are willing to take one ride in a month. There is no limit of work to the hours you spent with uber in a month.

However, the rate of working hours varies. This depends on the kind of car you are using to drive. If the car is your private car, you have got the car by car finance, or you have hired a car to drive for uber. This makes the rates per hour different for every uber driver. After the deduction of expenses, you can expect a good rate per hour depending on the type of car you aim to drive for uber.  It would be best if you did not forget to consider uber’s cut in expenses.


How do Uber Drivers Pay Taxes in the UK?

We all know that uber drivers are considered to be self-employed individuals in the UK. This makes them responsible for paying their taxes if they are considered a self-employed individual. This goes the same for national insurance contributions as well. You are required to take the completion of a self-assessment tax return seriously and do it every year.

The good news for uber drivers in the UK is that you are not required to pay taxes for all the income you earn. You will take the responsibility to pay taxes only on your profits. In simple words, we can say that you are allowed to deduct your business expenses from your total earnings and now the amount that you are left with is your profit. On this final amount, you will pay tax.


Deductible Expenses as an Uber Driver

It is considered a core service when you offer work as an uber driver in the UK. It will not be a wrong statement if we say that the private car you use to give the service is one of the biggest expenses in your case. The least you can deduct as an expense is expenses related to your car. However, you have to take the process of proving that expenses are purely related to business purposes.

HMRC have all the rights to question you about car usage and investigate whether the car is being used for personal reasons at any time in the month. This makes us realise that the details must be recorded fairly as you can go under investigation if HMRC doubts your provided details.


The Bottom Line

Now that you have gathered a fair amount of information about ‘Do uber drivers pay taxes in the UK’ from this blog, we can bring the discussion toward wrapping up now. You must be well aware of the eligibility criteria that are the first requirement to identify whether you should expect to work as an uber driver or not. After you find yourself eligible, you should consider the deduction of business expenses and the taxes that you will be liable to pay in the UK. We hope you will be able to make the right choice for yourself after gathering information from these few minutes read.


Get in touch with one of our experts to learn more about compliance management. We will try to provide the best possible professional advice instantly. 


Disclaimer: The information about ‘Do uber drivers pay taxes in the UK’ is provided in this blog including text and graphics in general. It does not intend to disregard any of the professional advice.

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