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.

Prepare Your Tax Return from Liverpool

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