Are you an Uber driver? If so, you need to ensure that you file a correct self-assessment tax return each year. With new rules and data sharing, making sure your numbers are accurate has never been more important. So you may be wondering if you need an accountant. Today’s guide gives Uber drivers an overview of the key HMRC compliance rules, what they need to deliver and how accountants like Taxfile can help drivers with bookkeeping, bookkeeping and self-assessment tax returns each year. By implementing these correctly, Uber drivers can minimize their taxes, stay on HMRC’s side and meet their tax obligations. This will also help them avoid financial chaos and potentially nasty penalties from HMRC.
Do Uber drivers need an accountant?
As well as carrying out their job as drivers, Uber drivers must also report their income and pay any tax and national insurance contributions to HMRC. This must be done Exactly And on time to avoid HMRC penalties. This is more important now than ever, because from January 1, 2024 it will be digital platforms like Uber legally required to report drivers’ income directly to HMRC. Professional drivers must therefore be 100% accurate in what they report and pay in taxes. Therefore, it is recommended that you seek the expert help of an Uber accountant – and the accounting fees are tax deductible.
“The regulations will support the Government’s work to help taxpayers do their taxes right the first time and to curb tax evasion.” (HMRC)
As part of the process, Uber drivers must submit an accurate self-assessment tax return each year. At the time of writing (July 2024), their next step is to file the tax return for the 2023–24 tax year with HMRC. The deadline is January 2025 (or 3 months earlier if filing via the old style). Paper Tax declaration).
“Drivers remain tax independent and must continue to file an annual tax return.” (Uber.com)*
Tempted to prepare your own tax return?
When Uber drivers log in to their Uber account, they have access to a tax report that shows their income and expenses. It might be tempting to just use this information for your own self-assessment tax return. However, the information provided via The Uber account will do it not contain Capital subsidies for purchased vehicles and possibly many other reimbursable expenses like the ones we highlight later in this guide. In other words, They could lose – and pay more taxes than they have to! This is one of the main reasons why hiring an accountant like Taxfile makes sense for Uber drivers.
Taxfile: an Uber driver accountant in South London
Taxfile’s accountants and tax advisors work with many Professional driver every year, including Uber drivers. We are therefore experts in calculating income, expenses, national insurance, income tax and meeting HMRC requirements and deadlines. This results in us filing hundreds of self-assessment tax returns for motorists each year. For professional drivers who work through digital platforms such as Uber, we calculate drivers’ income and help reduce tax liability by offsetting all eligible expenses. We also help drivers sign up for self-assessment when they first start. This will give you a UTR number, which is needed to file a tax return.
What expenses can Uber drivers deduct from tax?
There are several expenses that Uber drivers may be able to offset against their income to reduce taxes. As you might expect, many of these are due to the use of a vehicle for business. Examples include:
- The portion of driver fees paid to Uber;
- vehicle tax;
- The costs of MOT tests;
- The costs of maintaining the vehicle, e.g. B. Maintenance, cleaning and repairs;
- Fuel cost/mileage (there are different ways to achieve this);
- The cost of leasing or renting the vehicle;
- capital grants for purchased vehicles;
- parking fees and any toll fees;
- The cost of car insurance;
- accounting fees related to running the business;
- bank loan interest;
- Use of a telephone, radio and/or GPS system for the Company;
- costs related to marketing the company (advertising, etc.);
- And possibly additionally Costs not listed here.
Taxfile can advise you on all of these points to ensure Uber drivers don’t pay more taxes than they absolutely need to. Such expenses can usually be offset where they occur business use (not personally). Uber drivers must keep comprehensive and accurate records, such as: B. Invoices, receipts, etc. to make claims.
So if you are an Uber driver or planning to become one, please Contact Taxfile. We will help you prepare for self-assessment and then work with you to ensure your figures are correct, your tax return is correct and that it is submitted to HMRC in time for the deadline. This way you know your tax affairs are in order and can avoid nasty penalties from HMRC. With our help, you won’t pay more taxes than necessary. It will also give you a more accurate picture of your finances, helping to avoid surprises that could otherwise negatively impact cash flow.
Uber drivers in South London: Contact Taxfile
We offer a free, 20-minute, no-obligation consultation, so you have nothing to lose by contacting us. We’ll confirm pricing and explain more about how we can help you in a pressure-free manner.
Tax file are Accountants with offices in Tulse Hill in SE21, Dulwich in south LondonAnd Devon/Cornwall in the West Country.
*Are Uber drivers employees, workers or self-employed?
With reference to employment statusUber drivers in the UK are now legally classed as Uber drivers Workforce instead of self-employed contractor or Employees. This follows a 2021 UK Supreme Court ruling (∞), which grants them certain employment rights.
However, purely from a Tax positionUber drivers are effective self-employedThere is therefore an obligation to submit a self-assessment tax return every year.
