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For Taxi Drivers

Tax Return for Taxi Drivers

Complete your Self Assessment in 8 minutes. Claim all your allowable expenses and submit directly to HMRC.

  • Mileage calculations
  • Licensing fee support
  • Vehicle expense tracking
  • MTD-ready for 2026

Example Tax Calculation

Based on typical taxi drivers earnings £28,000/year

Gross Income£28,000
Mileage Deduction (20,000 miles)7,000
Expenses2,000
Taxable Profit£19,000
Income Tax£1,286
National Insurance£386

*Illustrative example based on 2024/25 tax rates. Your actual tax depends on your specific circumstances.

Allowable Expenses for Taxi Drivers

Claim these tax-deductible expenses to reduce your tax bill

Mileage Allowance

Claim 45p per mile for the first 10,000 miles, then 25p per mile.

Tip: Keep a detailed mileage log for all fares.

Taxi Licensing

Council licensing fees, badge costs, and vehicle plate fees.

Tip: Keep all licensing receipts and renewal documents.

Vehicle Insurance

Taxi and public hire insurance premiums.

Tip: Insurance is fully deductible.

Vehicle Maintenance

Servicing, repairs, MOT, and cleaning costs.

Tip: Keep invoices for all maintenance work.

More expenses you can claim

Phone and data
Meter and dispatch equipment
Dash cam costs
Accounting software fees
Parking and tolls
Vehicle cleaning

How to File Your Tax Return

Follow these simple steps to complete your Self Assessment

1

Gather Your Documents

Collect income records, receipts, and expense statements

2

Enter Income & Expenses

Add your earnings and claim allowable expenses with our guided flow

3

Review Your Calculation

See exactly how much tax you owe with real-time calculations

4

Submit to HMRC

File your tax return directly to HMRC in minutes

Key Deadlines for 2024/25 Tax Year

Don't miss these important dates

5 April 2025

Tax Year Ends

Calculate your final income and expenses

5 October 2025

Register for Self Assessment

If this is your first year self-employed

31 January 2026

Online Filing Deadline

Submit your tax return and pay any tax owed

6 April 2026

MTD Starts (£50k+)

If your income exceeds £50,000, you must use MTD software

Late Filing Penalties

1 day late: £100 fixed penalty

3 months late: £10/day up to £900

6 months late: 5% of tax owed or £300 (whichever is higher)

12 months late: Additional 5% or £300

Plus interest on any tax paid late. Avoid these costs by filing early with QTax.

Frequently Asked Questions

Answers to common questions about tax returns for taxi drivers

Do taxi drivers need to register as self-employed?

Yes. If you work as an owner-driver or rent a cab, you must register for Self Assessment.

Should I claim mileage or actual vehicle costs?

Most drivers use mileage allowance at 45p per mile. You can claim actual costs instead but must stick with your chosen method.

Can I claim Knowledge training costs?

Knowledge of London training costs may be deductible as they relate to starting your taxi business.

Related Guides

Explore tax guides for similar professions

Ready to File Your Tax Return?

Join thousands of UK taxi drivers who trust QTax for their Self Assessment