Posted on 9th August 2018
If you currently work as an Uber driver, or plan to become one, you need to be registered as self-employed. That means that you have a responsibility to ensure your tax arrangements are in order.
Whether you’re a full-time driver or just looking to pick up some extra work in the evenings or at weekends, there are some important steps you must take to make sure that you’re tax-compliant.
First of all, you need to register with HMRC for Self-Assessment and Class 2 and 4 National Insurance. Ideally, you should do this as soon as possible, but definitely by October 5th in your second tax year.
As soon as you commence self-employment, you must start keeping a list and receipts for all your business income and expenses. This can be done using a simple spreadsheet to record all the required information, but it’s important to understand your allowable expenses. Your tax and National Insurance bills will actually be based on your income less all your allowable business expenses, so you need to know what those are.
For Uber drivers, the major cost is likely to be your vehicle, particularly as Uber has regulations about the age and type of vehicle that you can use. However, the tax rules that apply vary depending on whether you choose to use a car you already own, or buy or lease a vehicle for the purpose of driving for Uber.
Insurance payments, tolls and parking charges, car valeting and mobile phone use are just some of the many other expenses that you can claim.
If this seems like a lot to consider, don’t worry – for just £118 + VAT, we can take care of your tax return for you. Then you’ll be free to enjoy your self-employment journey with total peace of mind.