Merseyside

Tax Guide for Taxi Drivers in Liverpool

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

Average Annual Earnings

£24,000 - £35,000

Average Annual Mileage

18,000 - 26,000 miles

Licensing Authority

Liverpool City Council

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Tax Estimate

Example Tax Calculation for Liverpool

Based on average Liverpool taxi driver earnings and mileage

Gross Income£29,500
Estimated Expenses- £7,375
Mileage Allowance (22,000 miles)- £7,500
Taxable Profit£14,625
Income Tax- £411
Class 4 National Insurance- £123
Estimated Take-Home£28,966

Total estimated tax: £534 - 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 Liverpool Drivers

1

Mersey Tunnel tolls (Birkenhead and Wallasey tunnels) are deductible at £1.80 per crossing

2

Liverpool John Lennon Airport charges are deductible business expenses

3

Anfield and Goodison Park matchday fares generate peak income - track separately

4

The Liverpool waterfront and Albert Dock area generates consistent tourist fares

FAQ

Frequently Asked Questions

Common tax questions from Liverpool taxi drivers

Can I claim Mersey Tunnel tolls?

Yes. Mersey Tunnel tolls incurred during business journeys are fully deductible. With regular use, this can add up to over £900 per year in deductions. Consider a Tunnel Tag for automatic records.

How much do taxi drivers in Liverpool earn?

Drivers in Liverpool typically earn between £24,000 and £35,000 gross per year. Those covering the airport, city centre, and matchdays earn at the higher end.

Where do I apply for a Liverpool taxi licence?

Liverpool City Council's licensing team handles applications. You need a DBS check, medical, and to pass the local knowledge test. Fees are approximately £170 for a driver licence.

File Your Tax Return from Liverpool

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