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Self Assessment · Taxi and private hire driversLive — Available now

Taxi and private hire driver tax return: mileage, VAT and licence checks

Self-employed taxi and private hire drivers file an SA103S. The flat mileage rate is for ordinary cars only — gov.uk excludes black cabs and hackney carriages — and the VAT threshold is counted on the fares you are paid, before any rental or commission comes off. Licence renewals also involve a tax check.

HMRC-recognised · drafted from your bank feed · pay only when you file
What we fill in first
Box 9Turnover
Box 12Car, van & travel
Box 24.1Zero-emission car allowance
WHAT WE FILL IN FOR YOU

A driver's SA103S, box by box.

The vehicle is the biggest cost, and how you claim it depends on what it is. These are the boxes where taxi and private hire work differs.

WHAT A DRIVER CAN CLAIM

Cab, car and circuit costs — and what is not allowable.

gov.uk's flat mileage rate depends on the vehicle. A private hire saloon can use it; a vehicle designed for commercial use cannot, so it is real costs plus capital allowances.

Usually allowable

  • Fuel, insurance, servicing, vehicle tax and breakdown cover. The business share of real running costs, if you are not using the flat rate for that vehicle.
  • Vehicle hire and leasing payments. Hire charges and leasing payments are on gov.uk's list of allowable costs.
  • Flat-rate mileage on an ordinary car. For private hire in a standard car: 45p a mile for the first 10,000 business miles up to 5 April 2026, 55p from 6 April 2026, then 25p. It cannot be mixed with capital allowances on the same car.
  • Capital allowances on the vehicle. Writing-down allowances for most cars, or a 100% first-year allowance for a new zero-emission car. Under cash basis a car's cost is claimed this way, not as an expense.
  • Parking and business insurance. Parking, and any insurance policy for the business, such as public liability.

Usually not allowable

  • Flat-rate mileage on a black cab or hackney carriage. gov.uk excludes cars designed for commercial use, such as black cabs, hackney carriages and dual-control driving instructors' cars. Claim real costs and capital allowances.
  • Fines and penalty charges. Parking and bus-lane penalties are not allowable.
  • Personal driving. Non-business driving is not claimable. Only the business share of the vehicle's costs counts.
  • Annual investment allowance on a car. Cars do not qualify for it; vans and motorcycles can.
  • The cost of doing your tax return. Preparing and submitting your own Self Assessment return is not an allowable expense.
WHAT YOU GET

Everything this return files, keeps and tells you.

Files for you

Sent to HMRC, with a receipt you keep.

  • SA100 with an HMRC receipt
  • SA103S with turnover, expenses and net profit

Keeps for you

Every box traceable to the bank line behind it.

  • The bank feed and books behind every box
  • Your SA302 calculation

Tells you

Your figure before you file, not after.

  • Your estimated Income Tax and Class 4 NIC before you file
  • Whether the £1,000 trading allowance or your real costs is bigger
THREE THINGS PEOPLE GET WRONG

Taxi and private hire returns — the small print that costs money.

Black cab

The flat mileage rate excludes commercial cars

Simplified expenses cover cars except those designed for commercial use, such as black cabs, hackney carriages and dual-control driving instructors' cars. A private hire saloon can use it. For a black cab, claim the real running costs and capital allowances for the vehicle.

Source: Simplified expenses: vehicles — gov.uk (opens in a new tab)
Licence

Your licence renewal includes a tax check

Applying for or renewing a taxi or private hire licence involves confirming your tax responsibilities. A first or lapsed application asks you to confirm you are aware of them; a renewal needs an HMRC tax check, which cannot be completed if your details do not match HMRC's records. If you only pay tax through PAYE you need not check your tax liability.

Source: Confirm your tax responsibilities when applying for a taxi, private hire or scrap metal licence — gov.uk (opens in a new tab)
No sign-up — try it right here

See your Income Tax and NIC estimate — no sign-up.

Enter your fares and your running costs and get a labelled estimate of the tax and Class 4 NIC on your profit.

Fix the figures above to see an estimate.

Estimate only — not tax advice. Figures use published HMRC rates and thresholds for the selected tax year; your actual bill depends on your full return.

An estimate from the figures you enter — your real bill comes from your filed Self Assessment return.

PRICING

One fee per return. No subscription.

A self-employed return with no employment page is the Complete tier; with a PAYE job it is Simple.

50% off until 14 January 2027
Simple
One supplementary page
£29£59/ return

A PAYE job (SA102) and your self-employment page (SA103S) — SA100 with two supplementary pages.

Start a return
Complete
Every income type
£65£129/ return

Self-employment with no employment page, or three or more pages — every supplementary page included.

Start a return

A taxi driver's return, three ways.

RowHMRC onlineAn accountantac-co
£/return£0£150–£400 [Sleek — accountant fees for Self Assessment, UK, 2026-09-13]£29–£65
Drafts turnover and expenses from your bank feedNoIf you send themYes
Flat rate or real costsgov.uk's simplified expenses checkerThey would adviseYour choice, per vehicle; real costs only for a black cab

Accountant fee dated 2026-09-13 — check their own quote.

ANSWERS

Ready when you are.

Can I claim the flat mileage rate in a black cab?

No. gov.uk's simplified expenses exclude cars designed for commercial use, such as black cabs and hackney carriages. Claim the real running costs and capital allowances instead. A standard private hire saloon can use the flat rate: 45p a mile for the first 10,000 business miles up to 5 April 2026, 55p from 6 April 2026, then 25p.

Do I need to register for VAT as a taxi or private hire driver?

If you are self-employed and your taxable turnover goes over £90,000 you must register. Taxi fares are standard-rated for VAT. To test the threshold, use the full amount you are paid, adding back vehicle and radio rentals or agency charges a taxi firm deducts. Tips are outside the scope of VAT. Employee drivers are not in business for VAT.

What is the tax check on my taxi or private hire licence?

When you apply for a first or lapsed licence you confirm you are aware of your tax responsibilities. A renewal needs an HMRC tax check, and it cannot be completed if your details do not match HMRC's records. If you only pay tax through PAYE you do not need to check your records.

Will a booking app report my earnings to HMRC?

Possibly. Platform reporting rules from 1 January 2024 can require a UK platform operator to collect your details and report your earnings to HMRC; gov.uk names driving a taxi as an example. The report shows calendar-year totals after fees. It is not a tax bill and does not replace your records.

How much does a taxi driver's return cost?

Our fee is per return, with no subscription. The Simple tier (£29) is for a return with an employment page plus at most one other supplementary page; any other return is Complete (£65). The tier is set by the pages on your filed return.

Sources

Rules and rates on this page were checked against these gov.uk pages on 12 October 2026. Tax rules change; check the page itself for the tax year you are filing.

GUIDES & ARTICLES

Read before you file.

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Get your fares, vehicle and VAT line straight.

Connect your bank, review the draft SA103S, file when you're ready.