What private hire drivers need to know about taxes
The Self Assessment tax return for the 2025-2026 tax year is now open from 6 April 2026 - and for private hire drivers, this is a crucial time of year.
As a private hire driver, you’re your own boss. While that gives you independence, it also means you’re responsible for managing your own taxes. Getting this right is essential - not just to stay compliant, but to avoid overpaying or facing penalties later on.
Why so many drivers get caught out at tax time
We know that doing your taxes can feel overwhelming, especially when you're focused on being out on the road and earning. Common challenges we see private hire drivers face include:
- Not knowing what expenses they can claim
- Missing out on legitimate deductions
- Making mistakes on their Self Assessment
- Confusion around VAT and whether to register
- Keeping up with new requirements like Making Tax Digital (MTD)
- Worrying about deadlines and penalties
How the right accountant can make a difference
Having an accountant who understands the private hire industry can take a huge weight off your shoulders.
Here at Otto Car, we recommend our trusted partner Tax Sphere Limited, who specialise in supporting private hire drivers with their taxes. Their service is designed specifically around the way drivers earn and operate with confidence. Here's everything they can help with:
Self Assessment & expense claims
- Clear guidance on what you can claim
- Accurate preparation and submission
- Maximising your deductions while staying fully compliant
- Reducing the risk of errors and penalties
VAT & income optimisation
With recent VAT changes affecting private hire drivers in London, tax decisions have become more complex. Tax Sphere can provide tailored advice and help you decide whether VAT registration is right for you. Plus, you’ll also get:
- Full support with VAT registration
- Advice on choosing the right VAT scheme
- Helping improve your cash flow and overall earnings
- Ongoing VAT management
Making Tax Digital (MTD)
- Registration with HMRC
- Handling submissions through compliant software
- Simple support for managing digital records
Deadlines & compliance
- Timely submissions so you don’t miss deadlines
- Reminders and ongoing support
- Taking care of the process so you can focus on driving
Pricing & availability
Tax Sphere’s services are available to all private hire drivers, with a special offer for Otto Car’s community of drivers with live contracts:
- Self Assessment for ÂŁ135 for Otto Car drivers (fixed fee, no hidden costs)
- VAT and MTD services available on a monthly basis (tailored to your needs)
Get ahead early and keep more of what you earn as an Uber driver
With the tax season now open, the best thing you can do is get organised early. Leaving it too late can lead to unnecessary stress and rushed decisions.
If you don’t already have an accountant, this is the perfect time to get support from someone who understands your work and can help you stay in control.
Get in touch with Tax Sphere:
- Business WhatsApp: 07709 504 248
- Email: info@taxsphere.co.uk
- Website: taxsphere.co.uk
Drive with confidence with Otto Car
As London’s largest community of private hire drivers, we’ve supported over 20,000 drivers since 2015 in getting on the road and earning with confidence. Whether you're just starting out or looking to grow, we’re here to help you make the right decisions for your future.
From flexible plans - Rent to Buy, PCO Car Hire, Part-time PCO Car Hire, and Accelerate - to ongoing support, everything we do keeps you moving forward with clarity, confidence, and no surprises.
Ready to get started? Visit one of our London hubs or call 020 3995 1316 - our team is here to help.