Uber Driver Mileage Deduction 2025/26: How Much Can You Actually Claim?

The 45p / 25p AMAP Rate for Uber Drivers (2025/26)

For the 2025/26 tax year, HMRC's approved mileage rates remain at 45p per mile for the first 10,000 business miles, dropping to 25p per mile for every mile after that. This rate is designed to cover the full running cost of your vehicle — fuel, insurance, road tax (business portion aside), servicing, repairs, and depreciation — all in one simple per-mile figure.

For a full breakdown of how AMAP works and how it compares across vehicle types, see our HMRC Mileage Allowance 2025/26 guide.

Business Miles vs Personal Miles: What Counts for Rideshare Drivers?

As an Uber driver, the following all count as business miles:

• Driving to a pick-up after accepting a job
• Driving with a passenger on board
• Driving while online and available for jobs (cruising for fares)
• Repositioning to a busier area while logged into the app
• Travel from home to your first job and from your last job back home — because your vehicle is your place of work, not a fixed office

Purely personal trips — the school run, weekend shopping, holidays — do not count and must be excluded from your mileage log.

How to Calculate Your Uber Mileage Deduction (Worked Examples)

Example: 15,000 Business Miles a Year

Miles	Rate	Deduction
First 10,000 miles	45p	£4,500
Remaining 5,000 miles	25p	£1,250
Total mileage deduction		£5,750

Example: 25,000 Business Miles a Year (High-Mileage Driver)

Miles	Rate	Deduction
First 10,000 miles	45p	£4,500
Remaining 15,000 miles	25p	£3,750
Total mileage deduction		£8,250

This deduction is taken straight off your gross fares before Income Tax and Class 4 National Insurance are calculated — so an £8,250 deduction at the basic rate (20% Income Tax + 6% Class 4 NI for 2025/26) is worth roughly £2,145 in real tax saved.

Mileage Method vs Actual Costs Method — Which Wins for Uber Drivers?

You must choose one method per vehicle and stick with it. For most Uber drivers covering 15,000–30,000 miles a year in an economical car, the mileage method produces a higher deduction than tracking actual fuel, insurance, and depreciation separately — and it requires far less admin. The actual costs method tends to only outperform mileage for drivers with very high-cost vehicles (e.g. premium hybrids or EVs with expensive finance) doing relatively low mileage.

Not sure which is best for your situation? Run both scenarios through our free tax calculator to compare your take-home pay under each method.

Tracking Your Mileage: Tools & Records HMRC Accepts

HMRC requires a contemporaneous mileage log — recorded at or near the time of each trip, not reconstructed months later. Acceptable records include:

• Mileage tracking apps (e.g. automatic GPS-based trip loggers) that record date, start/end locations, and purpose
• The Uber Driver app trip history — useful as supporting evidence, but you should also log "online but no job" miles, which Uber's records don't always capture cleanly
• A simple spreadsheet or paper logbook — date, odometer start/end, total miles, and purpose of journey

Keep these records for at least 5 years after the relevant filing deadline, as set out in our guide to record-keeping for self-employed drivers.

Other Expenses Uber Drivers Often Forget

Mileage is the biggest deduction, but it isn't the only one. Phone and data costs, the Uber service fee/commission, licensing fees, and accountancy costs are all separately deductible even if you use the mileage method. See our full Uber driver expenses guide for the complete list.

Frequently Asked Questions