What Counts as My Income as a Private Hire Driver?
The answer depends on which platform you drive for and, for Uber drivers, where you drive. Each platform operates differently.
The short answer
What you declare on your Self Assessment return is not simply the amount deposited in your bank account. The correct figure depends on your platform and, for Uber drivers, whether you drive in London or outside London.
Read the section for your platform below.
Uber: outside London
Uber acts as your agent for trips outside London. This means you make the supply to the passenger directly. The full fare the passenger pays is your income for Self Assessment purposes.
Uber's commission is not a deduction from your income. It is a business expense, claimed separately on your tax return. For a full list of what you can claim, see what expenses private hire drivers can claim.
Worked example
The net effect on your tax bill is the same as declaring £15 with no expense. But you must declare the gross figure. HMRC holds the gross figure from Uber. A mismatch between what you declared and what HMRC holds may trigger a compliance letter.
HMRC receives earnings data directly from Uber, Bolt, FreeNow and other platforms under rules that came into force in January 2024. A gross/net error is one of the causes of mismatches that prompt HMRC to write to drivers.
Uber: London
TfL rules require Uber to act as the principal supplier for all trips within London. Uber makes the supply to the passenger, not you. Your income is what Uber pays you. There is no commission to gross up or claim back separately.
Bolt
Bolt operates as the principal supplier across the UK, in London and outside London. Your income is what Bolt pays you for each trip. There is no commission to declare and claim back.
Bolt also operates a taxi service. If you drive as a taxi driver on Bolt, the arrangement is different: the passenger contracts directly with you. Take advice if you are unsure which terms apply to you.
FreeNow
For private hire (PHV) drivers, FreeNow operates as the principal supplier across the UK. Your income is what FreeNow pays you for each trip. There is no commission to declare and claim back.
FreeNow also operates a taxi service. If you drive as a taxi driver on FreeNow, the passenger contracts directly with you and the full passenger fare is your income. Take advice if you are unsure which terms apply to you.
Other operators and minicab offices
If you work through a minicab office or any other operator not covered on this page, what you need to declare depends on your contractual arrangement with that operator. This is not always clear from how payments work day to day.
If you are unsure of your position with any operator, take advice before you file. Declaring the wrong figure, in either direction, creates a compliance risk.
If you drive for more than one platform
HMRC receives a separate report from each platform. You add the income figures from all platforms together on a single Self Assessment return. You do not file a separate return for each platform.
The £90,000 VAT registration threshold and the £50,000 Making Tax Digital threshold both apply to your combined gross income from all platforms, before commission or expenses are deducted.
For a full guide to multi-platform returns, see driving for multiple platforms: how to handle your tax return.
What if you have already filed incorrectly?
If you have declared the wrong income figure, you can correct this. Making a voluntary disclosure to HMRC reduces penalties significantly compared to waiting for HMRC to raise an assessment against you.
For a full explanation of what to do, see I have received a letter from HMRC about my driving income.
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