For a private-hire driver’s return, keep the full platform earnings statements, fees, cash fares and vehicle records. Net bank payouts alone can miss income and charges. The vehicle method and private use affect what you can claim, so keep mileage and purchase or lease details together.
Download gross earnings, not just payouts
Keep statements from every platform and any direct bookings. Record fares, cash receipts, tips, refunds and platform fees where relevant. A payout after commission is not automatically the gross sales figure.
Illustration: fares of £1,000 less a £200 platform fee produce an £800 payout. If the records show only £800 of sales and then deduct £200 again, they understate the result. Reconcile the fee separately and check adjustments against the actual statement.
Build a driver-specific expense folder
- Vehicle purchase, lease or finance agreement.
- Business-mile records and previous vehicle claims.
- Insurance, servicing and other vehicle invoices.
- Platform charges, licensing and other work costs for review.
- Phone bills and a clear explanation of private use.
Having an invoice does not automatically make every cost deductible. Fines and private driving are not business expenses. Whether a particular journey qualifies depends on the working pattern.
Choose the vehicle method consistently
Simplified mileage and actual running costs are alternatives for the costs they cover. Do not add fuel and servicing to the same mileage claim. Prior claims and the vehicle type can affect the available method, so supply the history before the accountant calculates it.
Explain how you work
Private-hire arrangements can raise employment-status questions. Say who pays you, how bookings work and whether you have another job. Use the vehicle-records guide and send the complete income picture when arranging TaxSimba support.
Before comparing mileage with actual vehicle costs
Identify the vehicle type and previous claims first. HMRC excludes certain commercially designed vehicles, including black cabs, from simplified mileage. Prior capital-allowance or purchase-expense claims can also prevent its use. A private-hire car is not automatically treated the same as every taxi.
Keep a dated business-mile log alongside actual running costs so an eligible comparison can be made. The tax year matters: HMRC lists 45p for the first 10,000 qualifying car or goods-vehicle miles before 6 April 2026, rising to 55p for 2026/27. The rate above 10,000 remains 25p. Check the linked mileage guide before using a rate.
Why a driver’s bank deposit may differ from earnings
Illustrative example.
Assume a fictional platform statement shows £1,000 gross fares, a £200 platform fee and an £800 payout, with no other adjustments. The payout alone is not the complete earnings picture. Record and reconcile the statement on the accounting basis that applies.
Do not start with £800 as sales and then deduct the same £200 fee again. Cash fares, tips, refunds or amounts handled outside the platform can add further reconciliation items. This simplified illustration does not decide employment status, VAT treatment or the deductibility of every charge.
| Check | Practical action |
|---|---|
| Gross fares in the example | £1,000 before the stated platform fee. |
| Platform fee in the example | £200 shown separately, subject to the correct treatment. |
| Bank payout in the example | £800 to reconcile, not a second set of sales. |
Does every difference mean a missing expense?
No. Timing, refunds, adjustments and different payment routes can all affect the reconciliation. Obtain the statement breakdown.
Can a bank statement replace the mileage record?
A bank statement shows payments, not the business journeys travelled. Keep the relevant journey evidence separately.
Download a checklist for this guide
- Platforms and statement periods
- Gross fares, cash fares and other receipts
- Fees, refunds and payout reconciliation
- Vehicle documents and mileage evidence
- Private use and other work