Can Taxi Drivers Claim Repairs & Maintenance?
Keeping your taxi roadworthy is essential and tax-deductible. MOTs, servicing, tyre replacements, and mechanical repairs can all reduce your tax bill.
Yes - repairs & maintenance is an allowable business expense for UK taxi and private hire drivers.
What You Can Claim
- MOT test fees
- Regular servicing (oil changes, filter replacements)
- Tyre replacements and wheel alignment
- Brake pad and disc replacements
- Windscreen repairs and replacements
- Exhaust system repairs
- Engine and gearbox repairs
- Bodywork repairs from wear and tear
- Replacement bulbs, wipers, and minor parts
What You Cannot Claim
- Vehicle modifications that improve beyond original spec (e.g. alloy wheel upgrades)
- Repairs to a vehicle not used for taxi work
- Personal proportion of repairs on a mixed-use vehicle
- The initial purchase price of the vehicle (this is capital expenditure)
- Cosmetic modifications not required for taxi licensing
Typical Annual Range
£1,000 - £3,500 per year
Average annual spend by UK taxi drivers on repairs & maintenance. Your actual costs may vary depending on location, hours worked, and vehicle type.
HMRC Rules
HMRC treats repairs as revenue expenditure, meaning they restore the vehicle to its original condition and are fully deductible in the year incurred. Improvements that enhance the vehicle beyond its original state may be treated as capital expenditure. If using the mileage allowance method, you cannot claim actual repair costs separately as they are included in the per-mile rate.
Maximise Your Repairs & Maintenance Deductions
Get itemised invoices from garages - HMRC may query large lump-sum payments
If your vehicle is mixed-use, only the business proportion of repair costs is deductible
Preventive maintenance is cheaper than breakdown repairs and fully deductible
Keep a log of all repairs with dates, mileage, and descriptions of work done
Frequently Asked Questions
Common questions about claiming repairs & maintenance on your tax return
Is a new set of tyres a repair or an improvement?
Replacing tyres with equivalent ones is a repair and fully deductible. However, if you upgrade to significantly more expensive performance tyres, HMRC could argue this is an improvement.
Can I claim for repairs I do myself?
You can claim the cost of parts and materials you purchase to repair your own vehicle. You cannot claim for your own labour time.
What if my repair costs are unusually high one year?
Legitimate repair costs are deductible regardless of the amount. However, very large claims may prompt HMRC to request evidence. Keep all invoices and receipts.
Are RAC/AA breakdown membership fees deductible?
Yes, breakdown cover for your taxi is an allowable expense under repairs and maintenance, as long as it covers the vehicle used for business.
Track Your Repairs & Maintenance Expenses Automatically
Fyled makes it easy to record, categorise, and claim all your taxi expenses. See exactly how much tax you will save.