If you drive for platforms like Uber, Bolt, Deliveroo or Amazon Flex, you're considered self-employed for tax purposes in the UK.
This means you must report your income to HMRC — but it also means you can deduct legitimate business expenses before calculating your tax.
Claiming the right expenses can significantly reduce the amount of tax you pay each year.
How Tax Deductions Work
When you're self-employed, you pay tax on your profit, not your total income.
Your profit is calculated like this:
Income – Allowable Expenses = Taxable Profit
For example:
- Income from driving: £30,000
- Business expenses: £8,000
Your taxable profit becomes £22,000, which means you pay tax on a much lower amount.
Common Expenses Self-Employed Drivers Can Claim
1. Mileage or Vehicle Costs
Drivers usually claim vehicle costs using the simplified mileage method.
HMRC allows:
- 45p per mile for the first 10,000 miles
- 25p per mile after that
This rate is designed to cover:
- fuel
- maintenance
- servicing
- insurance
- vehicle wear and tear
You cannot claim fuel separately if you use the mileage method.
Alternatively, some drivers claim actual vehicle costs, but this method is more complex.
2. Fuel (If Not Using Mileage)
If you choose the actual cost method, you can claim fuel expenses directly.
However, you must then track all vehicle costs and calculate the percentage used for business.
Because of this, many drivers prefer the simplified mileage method.
3. Phone Costs
Your phone is essential for accepting jobs, navigating routes and communicating with customers.
You can claim the business portion of your phone bill.
For example:
If you estimate 70% of your phone usage is work-related, you can deduct 70% of the monthly cost.
4. Phone Accessories
Accessories required for work are also allowable expenses.
Examples include:
- car phone mounts
- charging cables
- power banks
- protective cases
Keep receipts or purchase records.
5. Parking Fees
Parking costs incurred while working are deductible.
Examples include:
- parking meters
- car park fees
- parking paid through apps
However, parking fines or penalties cannot be claimed.
6. Tolls and Congestion Charges
Road charges incurred during business journeys can be deducted.
Examples include:
- London Congestion Charge
- Dartford Crossing toll
- bridge or tunnel tolls
7. Safety Equipment
Protective equipment required for work can be claimed.
Examples include:
- high-visibility vests
- safety helmets for cyclists
- other protective gear
Regular clothing cannot normally be claimed, even if worn while working.
What Expenses Cannot Be Claimed?
Some costs are considered personal expenses and are not deductible.
Examples include:
- normal clothing
- parking fines or speeding tickets
- personal travel
- meals during regular working hours
Keep Good Records
HMRC requires self-employed workers to keep records of income and expenses.
You should keep:
- receipts
- invoices
- mileage logs
- bank statements
With Making Tax Digital (MTD) starting soon, keeping digital records will become even more important.
The Bottom Line
Understanding which expenses you can claim helps ensure you don't pay more tax than necessary.
For many self-employed drivers, vehicle costs, mileage and phone usage are among the largest deductions available.
Tracking these expenses properly throughout the year makes tax time much easier — and can save you a significant amount of money.