How this is calculated
This calculator takes gross fares received, deducts genuine running costs to leave a trading profit, then applies income tax and Class 4 National Insurance to that profit in the same way as any other self-employed trader, stacking it on any other taxable income you have.
Running costs for a rideshare driver typically include fuel, vehicle finance or a proportion of a vehicle's cost through capital allowances, insurance, cleaning, phone costs and the platform's own commission or booking fees, all of which reduce the taxable profit figure used for tax and National Insurance.
A separate VAT flag highlights whether gross fares are approaching the registration threshold, since it is total turnover, not the driver's take-home profit after platform fees, that counts towards this test.
The VAT question for rideshare drivers
VAT has become a live issue in the rideshare sector following changes to how platform bookings are treated for VAT purposes in some cases, with certain platforms now accounting for VAT on the full fare rather than only their commission. Whether an individual driver needs to register personally still depends on their own turnover crossing the standard threshold, and this is an area where rules and platform practices have shifted, so drivers close to the threshold should get current advice specific to their platform.
Because gross fares, not net profit, count towards the VAT threshold, a driver working long hours on a lower-margin platform can hit the registration threshold well before their actual profit looks large enough to expect it.
Record keeping for rideshare income
Most platforms provide detailed statements showing gross fares, commission deducted and any bonuses separately, which makes reconstructing turnover for tax purposes easier than for a driver keeping entirely manual records. It is still worth keeping fuel receipts, vehicle finance statements and a mileage log, since actual costs versus the AMAP mileage rate can produce different results depending on the vehicle and how it is financed.
Drivers using a vehicle on finance or purchased outright generally get better relief from actual cost claims and capital allowances than from the flat mileage rate, given typically high annual mileage in this line of work.
What this means for your company
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
Frequently asked questions
Are Uber and other rideshare drivers usually self-employed?
Most rideshare drivers currently operate as self-employed for tax purposes, responsible for their own income tax and National Insurance through self-assessment, though the exact position can depend on the specific platform and contract terms.
Do I need to register for VAT as a driver?
You need to register once your own turnover passes the standard VAT registration threshold in any rolling 12-month period, and recent changes to how some platforms handle VAT on fares make this an area worth checking regularly.
Can I claim the mileage allowance instead of actual vehicle costs?
Yes, but not both together for the same vehicle. Given the high annual mileage typical of rideshare driving, actual costs and capital allowances often produce a larger deduction than the flat mileage rate, so it is worth comparing both.
Do platform fees reduce my taxable profit?
Yes, commission and booking fees deducted by the platform are a genuine business cost and reduce your taxable trading profit, provided you use the gross fare, before the platform's deduction, as your turnover figure.