Tax Guides for UK Taxi Drivers
Everything you need to know about expenses, deductions, and filing your Self Assessment. Written specifically for taxi and private hire drivers across the UK.
Expense Category Guides
Detailed guides for each of the 14 HMRC-approved expense categories that UK taxi drivers can claim. Learn exactly what counts, what does not, and how to maximise your deductions.
Fuel
Fuel is typically the largest single expense for taxi drivers. Understanding the rules around claiming fuel costs can save you hundreds each year.
Repairs & Maintenance
Keeping your taxi roadworthy is essential and tax-deductible. MOTs, servicing, tyre replacements, and mechanical repairs can all reduce your tax bill.
Insurance
Taxi insurance is a significant annual cost. The good news is that it is a fully allowable business expense when claimed correctly.
Road Tax (VED)
Vehicle Excise Duty (road tax) is compulsory for all vehicles on public roads. For taxi drivers, it is a straightforward allowable business expense.
Licence Fees
Licence fees are an unavoidable cost of working as a taxi or private hire driver. All licensing costs required for your trade are tax-deductible.
Cleaning & Valeting
A clean taxi is essential for passenger satisfaction and repeat business. All cleaning costs for your taxi are allowable business expenses.
Phone & Communications
Your phone is an essential business tool for receiving bookings, navigation, and communicating with passengers. A portion of your phone costs is tax-deductible.
Parking & Tolls
Parking charges, toll roads, and congestion fees are daily costs for many taxi drivers. All business-related charges are deductible.
Vehicle Finance
Most taxi drivers finance their vehicle through HP, PCP, or a loan. The interest and finance charges are deductible, but the rules vary by finance type.
Accountancy Fees
Whether you use an accountant or software like Fyled, the costs of managing your tax affairs are fully deductible business expenses.
Advertising
Promoting your taxi business helps attract direct bookings and regular customers. All genuine advertising costs are tax-deductible.
Bank Charges
Business bank accounts, card payment processing, and transaction fees are everyday costs that are fully deductible for taxi drivers.
Training
Training that updates your existing skills or is required for your taxi licence is tax-deductible. Investing in yourself can also reduce your tax bill.
Other Business Expenses
Beyond the main categories, there are numerous smaller expenses that taxi drivers can legitimately claim. They may be small individually but add up over the year.
City Tax Guides
Location-specific tax information including local licensing, average earnings, city-specific expenses, and practical tips for taxi drivers in 30 UK cities.
Greater London
South East
East of England
West Midlands
East Midlands
Yorkshire & Humber
Scotland
Northern Ireland
Ready to Reduce Your Tax Bill?
Fyled tracks your income, expenses, and mileage automatically. See your tax in real time and file with confidence.