How to Keep Tax Records as a Self-Employed Driver (HMRC Compliant)

Why HMRC Record Keeping Matters

Keeping accurate, organised records is not just good practice — it's a legal requirement. HMRC can investigate any Self Assessment return filed in the past 4 years (or 6 years if they suspect careless errors, or 20 years for deliberate fraud). If your records are insufficient during an investigation, HMRC may estimate your income and expenses — and their estimates are usually unfavourable.

Good records also mean you claim every expense you're entitled to, potentially saving hundreds of pounds per year in unnecessary tax.

What Records Must You Keep?

Income Records

• Bank statements showing all income received from Uber, Bolt, Deliveroo, Amazon Flex, or private hire bookings
• Annual earnings statements from every platform you work for (download from each app)
• Any invoices you issue to private customers
• Records of cash payments received (date, amount, customer if known)

Expense Records

• Receipts for all claimed expenses (fuel, repairs, phone, equipment, licensing fees)
• Bank/card statements showing expense payments
• Invoices from garages, phone providers, accountants
• If claiming the mileage allowance: a contemporaneous mileage log

Other Records

• Your platform contracts and driver agreements
• DVLA and licensing correspondence
• Vehicle purchase or lease agreements (if claiming capital allowances or the actual costs method)

How to Keep a Mileage Log

If you claim the HMRC Approved Mileage Allowance (AMAP), your mileage log is your most important document. HMRC expects a contemporaneous log — meaning you record each journey at or near the time it happens. A log created months later from memory will not satisfy HMRC.

Each entry should include:

• Date
• Start location and destination (postcodes are sufficient)
• Business purpose (e.g., "Uber passenger job" or "trip to licensing office")
• Miles driven
• Running total of business miles for the year

Many rideshare platforms record active trip mileage. Download your annual trip history as a starting point — but remember, these only capture the miles while carrying a passenger. Deadheading miles (empty journeys to pick-up locations, journeys between jobs) are also business mileage and must be recorded separately.

Digital vs Paper Records

HMRC accepts digital records. You do not need to keep paper. Photographs of receipts taken on your phone are acceptable, provided they are legible. Store these systematically — by month or by category — so they're retrievable during an enquiry.

Free cloud storage (Google Drive, OneDrive, iCloud) is ideal for receipt photos. Create a folder per tax year and subfolders per category (vehicle, phone, licensing, etc.).

Useful Apps for UK Drivers

Several apps can automate mileage tracking using your phone's GPS:

• MileIQ — automatic tracking, classifies journeys as business or personal, exports HMRC-ready reports
• TripLog — similar automated tracking with mileage reports
• QuickBooks Self-Employed — combines mileage tracking with expense categorisation and tax estimation; connects to your bank account
• FreeAgent — popular with UK sole traders; full bookkeeping with mileage, receipts, and Self Assessment filing integration

Even a well-maintained spreadsheet (Google Sheets or Excel) works perfectly well if you update it consistently.

Business vs Personal Use

For any asset used both for business and personal purposes (your main vehicle, mobile phone), you must only claim the business-use proportion. Document how you calculated this percentage — for example: "tracked 22,000 total miles in 2025/26, of which 18,000 were business — 82% business use."

Frequently Asked Questions