what can you claim on your taxes for uber

What Can You Claim on Your Taxes for Uber in the UK?

20/03/2024tax , Tax Saving Tips

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.


Related post

tax deductions for carpenters
What are the Tax Deductions for Carpenters?

05/02/2025tax

The UK government makes sure every citizen is a taxpayer. No profession or social class is completely exempted from tax liability. If you are a carpenter and you are not aware of tax liabilities imposed on carpenters and what are the tax deductions for carpenters in the UK, then this article is for you. Here, we discuss the tax liabilities and deductions that carpenters can enjoy while working in the UK. Talk to our best accountants and bookkeepers in the UK at CruseBurke. You will get instant help with the tax deductions for carpenters. What are the Tax Deductions for Carpenters in the UK? Carpenters are people who work with wood and build and repair structures out of wood. The rich history of carpentry can be seen across the UK in the architecture of its buildings, wood furniture, and woodwork in homes and offices. Carpenters perform various tasks, from small wood structures to huge architectural marvels such as roads and bridges. What Does a Carpenter Do? A carpenter performs a variety of tasks depending on the nature of the work site and work requirements. A carpenter is responsible for: Checking the construction plan proposed by the client Making customised wood parts for the construction Building supporting structures for concrete buildings Building customised roofs for houses or buildings, huts or hotels Making customised decor items according to customer demands Collecting and joining parts of free-standing items Restoring and renovating old buildings and houses Installing cabinets in the kitchen, washroom, storage cupboards, or making pantry shelves. What Qualifications Are Needed to Qualify as a Carpenter? To do carpentry in the UK, you should have professional knowledge of carpentry. Many institutions provide basic-level professional knowledge of carpentry. Companies also look for experienced and professional carpenters to work on the projects; however, there are also opportunities for freshers. Completing a training course from a government-recognised institution is essential to becoming a qualified carpenter. In other words, a carpentry apprenticeship will help you acquire experience as well as some amount of earnings. After completing the apprenticeship, you will need one more certification from the government to become eligible to work on the construction site. This certification is called the Construction Skills Certification Scheme (CSCS). The CSCS is a government-recognised institute that provides skill certification for the construction industry in the UK. The Construction Skills Certification Scheme ensures that qualified and trained carpenters are working on the construction site. The CSCS card is not a legal requirement for working on construction sites; however, this provides a plus point for the worker for getting hired at a good position. How Much Do You Earn Annually by Working as a Carpenter? Carpenters make good earnings when working in the UK construction industry. Carpentry comes under skills that are in high demand in the UK. Skilled carpenters get hired quickly and pay high wages as compared to freshers on the construction site. As a fresher working on a construction site in the UK, you can earn £11,414 annually. On the other hand, if you are a skilled carpenter, you can earn up to £66,377 annually. The earnings of a carpenter depend on the following factors: Professional qualifications Skills as a carpenter Experience as a carpenter Location of your work Type of carpentry you are experienced in Tax Return as a Self-employed Carpenter If you are a self-employed carpenter, you are supposed to return your tax file at the end of the financial year like other professionals in the UK. You should maintain a record of your earnings throughout the year by filing taxes with all the necessary documentation and proofs. Maintaining the records is necessary because if you miss some of the records, you may end up paying more tax than the amount due according to HMRC rules. In the UK, a self-employed professional is allowed to claim tax-deductible expenses while filing a tax return; thus, you must maintain records of your earnings. CIS Tax Repayments CIS stands for Construction Industry Scheme. The contractor can deduct 20% of tax from your earnings if you are working as a subcontractor on the construction site. Expenses that you can claim as a carpenter Following are the expenses on which tax deduction for carpenters who are working in the UK is applicable according to HMRC: Materials you use at the construction site Consumable tools Equipment and machinery used on the construction site Insurance Protective clothing you use at the construction site Laundry and clothing Telephone expenses Mobile phone expenses Internet service charges Advertisement of your work Using your home as your office Computational equipment Software used for architectural purposes Bank charges on transaction Trade magazines Wages of workers Travelling expenses Vehicle expenses Mileage expenses as a carpenter Mileage expenses are mentioned and fixed by the HMRC. The per-mile allowance set by HMRC is 45p for the first 10,000 miles and 25p for the miles above this range. This mileage allowance includes a capital allowance for vehicles. File your monthly tax return While working in SIC, you must keep HMRC informed about your earnings at the end of each month. You can file your tax return as a subcontractor by The CIS Online service of HMRC Other commercial CIS software is available online When filing your tax returns, you must mention that the subcontractors are not your permanent employees. If you made no payments: If you don’t pay subcontractors any amount, then you don’t have to file any tax return every month. But you must keep HMRC informed about: Why are you not filing a tax return for the current month? If you are working with subcontractors or not And you are going to be inactive for a certain time period. HMRC must be updated for the above reasons, so your future tax return filing will be easier. The Commercial CIS Software Carpenters and contractors can use CIS software for filing tax returns. While using the CIS software, you must not enter any negative numerical value. If there are values in your …

Read more
what is tax deductions
What is a Tax Deduction?

29/10/2024tax

Wondering about what is a tax deduction in the UK? If you dream of maximising your income and minimising your liability of tax while earning in the UK, this is your guide. However, it will be essential for you to have an understanding of the tax deductions and how they work with its protocol in the UK. Whether you are a business owner or a job holder in the UK, navigating the complex charges of tax deductions can not be avoided. But if you can grasp the concept of tax deductions, you will be in a good position to handle tax requirements in a better way. This will not only boost the amount of your income, but you will handle the burden of tax better than earlier. Moreover, tax deductions have an important role in keeping the benefits of the tax system. So, let us begin to gather more information on this. Talk to our best accountants and bookkeepers in the UK at CruseBurke. You will get instant help with your accounting queries in the UK. What is a Tax Deduction? In the UK, tax deductions are known as the allowance amount or the kind of money that individuals can deduct from their income to reduce the tax liabilities on their income. This will also allow businesses and individuals in the UK to claim. The legitimate expenses relate more to their income. The primary purpose of tax deductions is to: Reduce Taxable Income: Lower the amount of income subject to tax. Decrease Tax Liability: Minimise the amount of tax owed. Encourage Savings and Investments: Support individuals and businesses in saving and investing. What are the Types of Tax Deductions? There are several types of tax deductions, however, here we have explained and listed the main ones. Personal Tax Deductions In the UK, individuals can claim various personal tax deductions to reduce their taxable income. These include: Personal Allowance: A tax-free allowance for basic-rate taxpayers. Blind Person’s Allowance: An additional tax-free allowance for blind or severely visually impaired individuals. Charitable Donations: Donations to registered charities can be deducted from taxable income. Employment-Related Tax Deductions Employees can claim deductions on: Work-Related Expenses: Costs incurred while performing job duties, such as travel expenses or professional subscriptions. Pension Contributions: Tax relief on pension contributions, including personal and employer contributions. Business Tax Deductions Self-employed individuals and businesses can claim deductions on: Business Expenses: Costs incurred while running a business, such as travel expenses, office equipment, and professional fees. Capital Allowances: Depreciation on assets like machinery, vehicles, and property. Rent and Rates: Business premises rental costs. Investment-Related Tax Deductions Investors can benefit from: ISAs (Individual Savings Accounts): Tax-free savings and investments. SIPPs (Self-Invested Personal Pensions): Tax relief on pension contributions. Venture Capital Trusts (VCTs): Tax relief on investments in small businesses. Other Tax Deductions Other deductions include: Childcare Costs: Tax relief on childcare expenses. Education Expenses: Tax relief on education costs for work-related purposes. Healthcare Costs: Tax relief on medical expenses. Property-Related Tax Deductions Landlords and property owners can claim: Mortgage Interest Relief: Tax relief on mortgage interest for rental properties. Property Allowance: A tax-free allowance for property income. What are the Eligible Expenses for Tax Deduction? The eligible expenses for the tax deduction include the following. Business Expenses To qualify for tax deductions, business expenses must be: Wholly and Exclusively for business purposes Reasonable and Necessary for the Business Properly Documented with receipts and records Eligible business expenses include: Travel Costs: Fuel, mileage, flights, and accommodation Office Equipment and Supplies: Computers, printers, stationery Professional Fees: Accounting, legal, consulting services Rent and Rates: Business premises rental costs Utility Bills: Electricity, gas, water, internet Investment-Related Expenses Investors can claim tax deductions on the following: Interest on Loans: Borrowing costs for investments Investment Management Fees: Portfolio management, advisory services Stamp Duty: Tax on property purchases Employment-Related Expenses Employees can claim tax deductions on the following: Work-Related Travel: Mileage, public transport costs Professional Subscriptions: Membership fees, industry publications Uniform and Clothing: Work-specific attire, protective gear Training and Education: Course fees, professional development Personal Expenses Individuals can claim tax deductions on the following: Charitable Donations: Gifts to registered charities Pension Contributions: Personal and employer contributions Mortgage Interest Relief: Interest on mortgages for rental properties Childcare Costs: Registered childcare providers Education Expenses Tax deductions apply to: Course Fees: Work-related education, professional development Education-Related Travel: Mileage, public transport Medical Expenses Tax deductions are available for: Medical Treatment: Private healthcare costs Disability-Related Expenses: Specialised equipment, care services Travel Costs for Medical Treatment: Mileage, public transport Home Office Expenses Self-employed individuals can claim: Business Use of Home: Proportion of household expenses Home Office Equipment: Computers, printers, furniture Capital Allowances Businesses can claim tax deductions on the following: Plant and Machinery: Depreciation on equipment, vehicles Property: Depreciation on commercial property For accurate information on eligible expenses: Consult HMRC’s website and guidance notes Contact HMRC or a tax professional Refer to tax-related publications and websites What are the Common Tax Deduction Mistakes? Here are a few common mistakes to avoid while dealing with the tax deductions. Business Tax Deduction Mistakes Claiming Personal Expenses as Business Expenses: Mixing personal and business expenditures. Incorrect Classification of Expenses: Misclassifying expenses as capital or revenue. Failure to Keep Accurate Records: Inadequate documentation supporting business expenses. Personal Tax Deduction Mistakes Incorrect Claiming of Reliefs: Failing to claim eligible reliefs or claiming incorrect amounts. Insufficient Record-Keeping: Inadequate documentation supporting expenses. Failure to Declare Income: Omitting income from tax returns. Investment-Related Tax Deduction Mistakes Incorrect Calculation of Interest Relief: Incorrectly calculating interest relief on investments. Failure to Declare Investment Income: Omitting investment income from tax returns. Incorrect Classification of Investments: Misclassifying investments as taxable or tax-free. Employment-Related Tax Deduction Mistakes Claiming Non-Work-Related Expenses: Claiming personal expenses as work-related. Incorrect Calculation of Mileage: Incorrectly calculating mileage or fuel expenses. Failure to Declare Benefits-in-Kind: Omitting benefits-in-kind from tax returns. The Bottom Line In conclusion, what is tax deduction in the UK is clear. As discussed earlier, if you know the basics of tax deductions, …

Read more


Need Help with Accounting? We’ve Got You Covered!

Running a business is hard. Let us take care of your accounting so you can focus on what matters most. Our services include: