Want to know how much tax you need to pay? Get an instant tax bill estimate based on your driving data.
If you work as an Uber driver, you’ll have to pay tax on the money you make from driving if you earn over £1,000 in a tax year. The tax year runs from 6th April to 5th April, unlike the financial year which runs from 1st January to 31st December.
This calculator will help you work out what money you’ll owe HMRC in taxes from driving for Uber.
There are two taxes that you’ll likely be charged:
Income Tax is a tax we all pay in the UK on our income above what’s known as the Personal Allowance. Currently, it’s set at £12,570. But it’s subject to change every year. National Insurance is a tax that enables you to claim certain state-provided benefits. Here are some examples of benefits you can claim through paying National Insurance:
Like Income Tax, you may not have to pay National Insurance if you earn less than £12,570 in the tax year. The NI rates and thresholds have changed several times throughout 2022, but as of 6th November 2022:
This question relates to your employment status. If you’re employed by a company as a permanent employee, you’re taxed automatically by a system called Pay As You Earn (PAYE).
Driving for Uber, alternatively, is a freelance job i.e. you’re not employed by Uber and you choose when you do and don’t work. If you have both a permanent job and you drive for Uber alongside this, you will need to calculate the tax rate you should be paying at.
You do this by adding up all your sources of income and working out your tax rate based on the total.
Take a look at the current Income Tax rates below:
|Up to £12,570||0%||Personal allowance|
|£12,571 to £50,270||20%||Basic rate|
|£50,271 to £150,000||40%||Higher rate|
|over £150,000||45%||Additional rate|
And this is the same for if you drive for other ride sharing companies such as Free Now, Bolt, and more. Add up your earnings from each of your jobs and input the total into our Uber Income Tax calculator to see the amount of tax deducted. You can also add either the flat rate Mileage Allowance or add business expenses one at a time.