What this calculator shows
Ride-hailing apps show what they paid you, but that is not what you earn. Fuel or charging, the car (rent, finance or lease), insurance, licence fees and phone costs all come out of it – and then tax. The calculator takes one typical week and shows:
- Profit per week after the costs you enter;
- profit per hour – including the time you are logged in but waiting – and per mile, including miles driven without a passenger;
- a yearly estimate for the number of weeks you work, with income tax and Class 4 National Insurance worked out the better of two legal ways.
Two ways to claim car costs
Self-employed drivers can claim car costs in one of two ways, and should check which suits them:
- Actual costs: fuel, insurance, repairs, car rent or lease and so on, plus capital allowances if you own the car (not included here).
- Simplified mileage: a flat rate per business mile instead of all running costs – 2026/27: £0.55 a mile for the first 10000 miles and £0.25 after that. With this method you cannot also claim fuel, insurance, repairs or car rent, but you can still claim non-car costs such as your private-hire licence and phone.
The calculator works both out and uses the one with the lower tax, and tells you which. Once you choose a method for a car, you normally have to keep using it for as long as you have that car.
Worked example
A week: app earnings £900, 45 hours online, 700 miles, fuel £120, car rent £250, insurance £60, licence and phone £20.
- Costs: £450 → profit £450 a week, £10.00 an hour, 64p a mile.
- Over 46 weeks: profit £20,700 with actual costs. With simplified mileage (32,200 miles: 10,000 × £0.55 + 22,200 × £0.25 = £11,050, plus £920 licence and phone) the profit would be £29,430 – so actual costs give the lower tax here.
Tips
- Keep a mileage log and receipts – HMRC can ask for them.
- Use a week that is typical, or average a few weeks, rather than your best week.
- Tips you receive are taxable income – include them in earnings.