Every pound of allowable expense lowers the profit you pay tax and National Insurance on. Many drivers miss the small ones, and they add up fast over a year.
Costs most drivers can claim
If a cost is wholly for your driving work, it is usually allowable. Common ones include:
- Operator and app commission (Uber, Bolt, FREE NOW, local firms)
- Radio or circuit rent paid to your operator
- Private hire or hackney licence fees, badge fees and DBS checks
- Council vehicle licence and compliance test fees
- Medical exams required for your licence
- Business share of your mobile phone and data
- Car washing and valeting
- Parking (not fines) and tolls paid while working
- Accountant fees and tax software, like FareTaxMate
Vehicle costs: it depends on your method
If you use actual costs, you claim the business share of fuel, insurance, repairs, servicing, tyres, road tax and lease payments, plus capital allowances on a vehicle you own.
If you use simplified mileage, those running costs are covered by the mileage rate instead, so you don't claim them separately. You can still claim things like licence fees, commission and parking on top.
Costs you can't claim
- Parking and speeding fines
- Personal or family use of the car
- Clothing you could wear outside work
- Food on a normal working day
Keep the proof
HMRC can ask for records for at least 5 years after the 31 January deadline. Snap a photo of each receipt when you add the expense in FareTaxMate so nothing gets lost.
General information only, not tax advice. Rules can change – check GOV.UK or an accountant for your situation.