This discussion about what can you claim on your taxes for Uber will delve into the various expenses that Uber drivers in the UK can claim. Including fuel costs, vehicle maintenance and repairs, insurance, phone and data expenses. We will also explore the importance of keeping accurate and detailed records of expenses and the process of submitting your self-assessment tax return to HMRC. Ultimately optimising their tax situation and supporting the growth of their ride-sharing business.

Talk to one of our intelligent and clever professionals to get your further queries about what can you claim on your taxes for uber. We will ensure to come up with the best possible solution.

How Do Expenses Work for Uber Drivers?

Expenses can significantly impact the earnings of Uber drivers in the UK. Understanding how expenses work and what can be claimed is crucial for drivers to optimise their earnings and stay compliant with tax regulations.

What can You Claim on Your Taxes for Uber if You’re a Driver?

As an Uber driver in the UK, you may be eligible to claim certain expenses on your taxes to reduce your overall taxable income. Claiming these deductions is crucial for ensuring you are not overpaying taxes and maximising your earnings.
To claim these deductions, you will need to keep detailed and accurate records of your business expenses. This can be done by using a dedicated expense-tracking app. Keeping physical receipts, or using digital receipts provided by retailers. At the end of the tax year, you will need to submit your self-assessment tax return to HMRC. Including details of your business income and expenses.

Car-Related Expenses

As an Uber driver, you may be able to claim certain car-related expenses as deductions on your taxes. These expenses can include fuel costs, vehicle maintenance and repairs, and insurance.

Fuel Costs

Drivers can claim a portion of their fuel costs based on the business miles they have driven. It is recommended to keep a detailed record of fuel purchases and business miles travelled.

Vehicle Maintenance and Repairs

Drivers can claim expenses related to maintaining their vehicle in good working order, such as oil changes, tyre replacements, and car washes. Keeping receipts and documentation of these expenses is essential.

Insurance

Drivers can claim a portion of their vehicle insurance costs based on the percentage of business use. It is crucial to have a business insurance policy that covers ride-sharing services like Uber.

Cleaning and Car Care

Drivers can claim expenses related to keeping their vehicles clean and well-presented for passengers. Such as purchasing air fresheners, car shampoo, and vacuum cleaners.

Ride-Related Expenses

As an Uber driver, you may be eligible to claim certain ride-related expenses as deductions on your taxes. These expenses can include tolls, congestion charges, cleaning supplies, and phone and data expenses. Here are some ride-related expenses you can claim:

Tolls and Congestion Charges

If you incur tolls and congestion charges while on the job, you can claim these expenses as deductions. Make sure to keep receipts and records of these expenses, as they will be needed to support your claim.

Cleaning Supplies

As an Uber driver, it is essential to keep your vehicle clean and well-presented for passengers. Expenses related to cleaning supplies, such as car shampoo, air fresheners, and vacuum cleaners, can be claimed as deductions. Keep receipts and records of these expenses to support your claim.

Phone and Data Expenses

If you use your device for work purposes, such as accepting trips, communicating with passengers, and navigating, you can claim a portion of your phone bills and data costs as deductions. It is crucial to keep records of these expenses to support your claim.

Other Ride-Related Expenses

Other ride-related expenses that can be claimed as deductions include parking fees, roadside assistance, and car washes. Keep receipts and records of these expenses to support your claim.

How Do I Claim?

As an Uber driver in the UK, you can claim certain expenses to reduce your overall taxable income. The process of claiming deductions involves keeping track of your expenses. Here’s a detailed guide on how to claim tax deductions as an Uber driver in the UK:

Understand which Expenses are Eligible

As an Uber driver, you can claim expenses related to your vehicle, fuel, maintenance, insurance, phone and data, and other ride-related costs. Make sure to familiarise yourself with which expenses are eligible for deductions and keep track of these expenses throughout the year.

Keep Accurate and Detailed Records

It is crucial to keep accurate and detailed records of your expenses to support your claim. This can be done by using a dedicated expense tracking app and keeping physical receipts.

Calculate Your Tax-Deductible Expenses

That is business-related or determining the business miles driven for fuel expenses.

Submit Your Self-Assessment Tax Return

At the end of the tax year (5th April for the majority of taxpayers), you will need to submit your self-assessment tax return to HMRC.

Pay Any Taxes Owed

Once you have submitted your tax return, HMRC will review your claim and calculate the amount of tax you owe. If you have claimed enough deductions to reduce your taxable income below the tax-free personal allowance. You may not owe any taxes. However, if you still owe taxes, you will need to pay them by the deadline specified in your tax return.

The Bottom Line

To conclude the discussion about what can you claim on your taxes for Uber, we can say that understanding what you can claim on your taxes is crucial for maximising your earnings. This will help to stay compliant with tax regulations. Ride-related expenses like tolls, congestion charges, cleaning supplies, and parking fees are also included in the list.

If you seek professional help to learn more about what can you claim on your taxes for Uber, why wander somewhere else when you have our young and clever team of professionals at CruseBurke?

Disclaimer: The information provided in this blog is about what can you claim on your taxes for Uber, including the text and graphics, in general. It does not intend to disregard any of the professional advice.