What Expenses Can I Claim as a Self-employed Taxi Driver?

Working as a self-employed private hire driver, taxi driver or courier driver doesn’t just give you more control over your daily schedule – it also offers you better financial control. As a self-employed driver, you get to decide how much you earn based on how many hours you drive, plus you can claim back many of your biggest expenses to reduce your tax payments.

In this quick guide, we answer some common questions around taxes and tax relief claims for self-employed private hire drivers.

What Can a Self-employed Driver Claim For?

Tax deductibles for self-employed drivers include:

• Fuel (incl. petrol and diesel)
• Vehicle licence and registration fees
• Vehicle insurance
• Courier insurance
• Breakdown cover
• Annual road tax
• Vehicle repairs
• Vehicle service
• MOT test
• Toll fees
• Parking fees
• Phone bill (for business usage)
• Interest on vehicle loans (incl. personal or back loans)
• Accountancy fees
• Advertising costs

How Do I Claim as a Self-employed Driver?

First, you’ll need to register with HMRC as self-employed and fill out a Self-Assessment tax return. The allowable expenses listed above will let you claim tax relief and lower your Self-Assessment bill.

Be aware of the tax submission deadlines, to avoid paying a fine and being charged interest charges on a late payment. The UK tax year runs from 6 April to 5 April the following year. This means you can submit your Self-Assessment and pay your taxes between 6 April and the following 31 January.

(Note: If you’re not filing your tax return online, the paper return deadline is earlier – 31 October of the same year.)

Will My Operator Help Me with My Claims?

At Addison Lee, we provide admin support to our drivers wherever needed, including assistance with tax returns. We also help our drivers to keep expenses low and maximise their earnings, by offering excellent vehicle rental rates and a comprehensive maintenance package.

Our maintenance package includes:

• Free roadside assistance
• Cover for PCO licencing, road tax and MOTs
• Support with fines, penalties and parking tickets

Contact Addison Lee today to find out more about the ways we empower our self-employed taxi drivers.