East of England

Tax Guide for Taxi Drivers in Cambridge

Everything you need to know about tax, licensing, and expenses as a taxi driver in Cambridge. Maximise your deductions and keep more of what you earn.

Average Annual Earnings

£25,000 - £36,000

Average Annual Mileage

14,000 - 22,000 miles

Licensing Authority

Cambridge City Council

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Tax Estimate

Example Tax Calculation for Cambridge

Based on average Cambridge taxi driver earnings and mileage

Gross Income£30,500
Estimated Expenses- £7,625
Mileage Allowance (18,000 miles)- £6,500
Taxable Profit£16,375
Income Tax- £761
Class 4 National Insurance- £228
Estimated Take-Home£29,511

Total estimated tax: £989 - This is an estimate based on 2026-2027 tax rates and average figures. Your actual tax will depend on your specific income and expenses. Use Fyled's tax calculator for a personalised calculation.

Local Tips

Tax Tips for Cambridge Drivers

1

Cambridge's Science Park, Biomedical Campus, and tech companies drive strong corporate demand

2

University graduation season (June) and tourist season create premium fare periods

3

Cambridge railway station is a major source of transfer fares, especially from London commuters

4

Stansted Airport transfers are a lucrative long-distance fare from Cambridge

FAQ

Frequently Asked Questions

Common tax questions from Cambridge taxi drivers

Can I claim Stansted Airport transfer costs?

Yes. All costs for Stansted transfers are deductible including fuel, the M11 journey, and airport parking or access charges. These premium fares are a significant earner for Cambridge drivers.

How much do taxi drivers in Cambridge earn?

Drivers in Cambridge typically earn £25,000-36,000 per year. The combination of university demand, tech sector corporate work, tourism, and Stansted transfers makes Cambridge one of the stronger earning cities outside London.

What makes Cambridge unique for taxi drivers?

Cambridge has a unique combination of year-round tourism, world-leading tech and biomedical sectors, a major university, and proximity to Stansted Airport. This diversity of demand provides consistent earnings throughout the year.

File Your Tax Return from Cambridge

Join thousands of Cambridge taxi drivers who use Fyled to track expenses, calculate tax, and file with HMRC - all from their phone.