Uber Tax Guide 2026/27
Last updated: March 2026 — Rates for the 2026/27 tax year
Uber is the UK's most widely used ride-hailing platform. Drivers in the UK are classed as workers (not self-employed) following the 2021 Supreme Court ruling, meaning they receive minimum wage, holiday pay, and pension contributions. However, tax treatment remains similar to self-employment for many purposes.
How Much Tax Will You Pay on Uber Income?
As a self-employed Uber worker you pay Income Tax and Class 4 National Insurance on your profits — not your gross earnings. The £1,000 trading allowance means the first £1,000 of income is tax-free. Above that, you deduct either the allowance or your actual expenses, whichever is higher, to arrive at your taxable profit. Use our side hustle tax calculator to get an instant estimate for 2026/27.
Basic rate taxpayer
20% + 9%
Income Tax + Class 4 NI on profit above £12,570
Higher rate taxpayer
40% + 9%
On profit between £50,270 and £125,140
Trading allowance
£1,000
Tax-free — no Self Assessment below this
Allowable Expense Deductions for Uber
These expenses reduce your taxable profit. Keep receipts for all claims.
Tax Tips for Uber Workers
- Drive during surge pricing periods — Friday and Saturday nights, airport runs, and during major events offer the highest fares.
- Consider switching to an electric vehicle for lower running costs and eligibility for Uber's Clean Air Plan bonuses.
- Keep a detailed mileage log including miles driven without passengers (deadheading), as these are also deductible.
- London drivers earn more on average but face higher costs (congestion charge, ULEZ, higher insurance). Calculate your net earnings for your specific area.
Frequently Asked Questions
Are Uber drivers employed or self-employed?▾
Following the 2021 UK Supreme Court ruling, Uber drivers are classed as 'workers' (not employees and not fully self-employed). This means they are entitled to the National Living Wage, holiday pay, and auto-enrolment pensions. However, for tax purposes, many drivers still file Self Assessment returns to claim expenses against their earnings.
What licence do I need to drive for Uber?▾
You need a valid UK driving licence (held for at least 3 years, or 1 year in London), a private hire vehicle licence from your local council, and a private hire driver licence. In London, you apply to TfL. The process includes a DBS check, medical examination, and topographical test.
How much does Uber take from each fare?▾
Uber typically takes a service fee of 25% from each fare, though this can vary. After the Supreme Court ruling, Uber also covers certain costs like holiday pay and pension contributions. Drivers keep 100% of tips, which are paid through the app.
Related Tools & Guides
Benefits Calculator
Low Uber earnings? Check Universal Credit and other benefit entitlements.
Take-Home Pay Calculator
Also have a PAYE job? See your combined income after all deductions.
Side Hustle Tax Guide 2026
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