Taxi Driver Salary UK 2026 | Uber, Bolt, Black Cab & Private Hire Pay
What does a taxi driver actually take home in 2026 after all the costs? The headline earnings figures from app-based platforms look impressive, but the reality of fuel, insurance, platform commissions, licensing and self-employed tax cuts the take-home figure dramatically. Whether you drive for Uber, Bolt, FREENOW, operate as a private hire driver through a local minicab office, or work as a London Black Cab driver, this guide breaks down the real numbers — and our calculator lets you see your own projected take-home pay.
UK Taxi Driver Earnings at a Glance (2026)
Typical annual earnings for full-time drivers after platform fees but before tax and vehicle costs.
Taxi Driver Income Calculator (2025/26 Tax Year)
Enter your gross fares earned (total before any deductions), platform commission rate, and annual operating expenses. The calculator applies UK 2025/26 self-employed income tax and Class 4 National Insurance to your taxable profit.
Uber, Bolt and App-Based Driving in the UK: The Real Earnings Picture
The gig economy has transformed UK taxi and private hire driving since Uber launched in London in 2012. Today, approximately 120,000 private hire vehicle (PHV) licences are active in London alone, with hundreds of thousands more across the UK. Bolt, FREENOW (formerly Hailo), Ola and Gett compete with Uber for both passengers and drivers, and their different commission structures make a significant difference to driver earnings.
How Platform Commission Affects Your Earnings
The most impactful variable for app-based drivers is the platform commission rate — the percentage of each fare the platform retains. Understanding the real cost of this commission is essential:
| Platform | Commission Rate | On £40,000 Gross Fares | Revenue to Driver | Notes |
|---|---|---|---|---|
| Uber | ~25% | £10,000 | £30,000 | Varies by city; lower for UberX Pro drivers |
| Bolt | ~15-20% | £6,000-£8,000 | £32,000-£34,000 | Popular lower-commission alternative |
| FREENOW | ~15-18% | £6,000-£7,200 | £32,800-£34,000 | Operates mainly in major cities |
| Ola | ~20-25% | £8,000-£10,000 | £30,000-£32,000 | Expanding UK presence |
| Local Minicab Office | 15-25% | £6,000-£10,000 | £30,000-£34,000 | Varies widely by operator |
| Black Cab (London) | 0% (meter + cash/card) | £0 | £40,000 | No commission — own all fares directly |
Multi-apping — keeping multiple apps active simultaneously and accepting the first viable job or the one with the best surge pricing — is practised by the majority of experienced app-based drivers. Studies suggest that effective multi-apping between Uber and Bolt can increase hourly gross earnings by 15 to 25 percent by reducing downtime between jobs. However, some platforms now monitor for multi-apping and may deactivate accounts if they believe a driver is consistently rejecting jobs.
London Black Cab vs Private Hire: Earnings Comparison
The contrast between London's iconic Black Cab (Hackney carriage) drivers and private hire (PHV) drivers is stark — both in earnings potential and in what it takes to get there.
London Black Cab Driver
London Uber / PHV Driver
Regional Private Hire Driver
London vs Regional UK: Taxi Driver Earnings Comparison
| City / Region | Driver Type | Gross Fares (FT) | After Commission | After Vehicle Costs | Approx. Take-Home (after tax) |
|---|---|---|---|---|---|
| London (Central) | Black Cab | £50,000-£70,000 | £50,000-£70,000 | £38,000-£58,000 | £28,000-£44,000 |
| London (PHV / Uber) | App-Based | £40,000-£55,000 | £30,000-£41,250 | £18,000-£28,000 | £15,000-£24,000 |
| Manchester | Private Hire | £28,000-£40,000 | £22,400-£34,000 | £14,000-£24,000 | £12,000-£20,000 |
| Birmingham | Private Hire | £25,000-£38,000 | £20,000-£32,300 | £12,000-£22,000 | £10,500-£18,500 |
| Leeds / Bradford | Private Hire | £22,000-£32,000 | £17,600-£27,200 | £10,000-£18,000 | £9,000-£15,500 |
| Edinburgh | Private Hire / Black Cab | £28,000-£45,000 | £22,400-£38,250 | £14,000-£26,000 | £12,000-£21,000 |
| Bristol / Bath | Private Hire | £24,000-£36,000 | £19,200-£30,600 | £12,000-£20,000 | £10,500-£16,500 |
All figures are annual approximations for full-time drivers working 40-50 hours per week. Individual results vary significantly based on hours worked, vehicle efficiency, local demand and expertise. Take-home pay is after income tax and NI based on 2025/26 rates.
UK Self-Employed Tax for Taxi Drivers (2025/26)
Almost all taxi and private hire drivers in the UK are classified as self-employed for tax purposes. Even Uber drivers — who were granted worker status (not employee status) by the Supreme Court in 2021 regarding minimum wage and holiday pay — remain self-employed for tax purposes and must register with HMRC, file a Self Assessment tax return annually, and pay income tax and National Insurance on their profits.
2025/26 Tax Rates for Self-Employed Drivers
| Tax Type | Rate | Threshold | Notes |
|---|---|---|---|
| Personal Allowance | 0% | Up to £12,570 | Tax-free for all income types |
| Income Tax (Basic) | 20% | £12,571 to £50,270 | On taxable profit above PA |
| Income Tax (Higher) | 40% | £50,271 to £125,140 | Only very high earners reach this |
| Class 4 NI | 6% | £12,570 to £50,270 | On trading profit |
| Class 4 NI (upper) | 2% | Above £50,270 | On profit above upper limit |
| Class 2 NI | £3.45/week | If profit above £12,570 | £179.40/year — builds State Pension |
Real Tax Calculation Examples
Example 1: Part-Time Uber Driver — £18,000 Taxable Profit
Example 2: Full-Time App Driver — £28,000 Taxable Profit
Example 3: London Black Cab Driver — £45,000 Taxable Profit
Vehicle Costs for UK Taxi Drivers in 2026
Vehicle costs are often the second largest expense after platform commission and represent a complex set of trade-offs between upfront cost, running costs, licensing requirements and earnings potential. Understanding the full vehicle cost picture is essential for accurate financial planning.
Hire & Reward Insurance
Mandatory commercial insurance for carrying paying passengers. Significantly more expensive than standard car insurance. Factors: driving history, vehicle, location, age, no-claims record. London is most expensive.
Fuel (Petrol/Diesel)
Full-time driver covering 60,000 to 80,000 miles/year in a diesel estate. Petrol averages approximately 140p/litre. Diesel slightly less but varies regionally. Fuel is typically the largest ongoing variable cost.
Electric Vehicle Charging
EV running costs are 60-70% lower than petrol/diesel. Home charging (off-peak rate 7p-12p/kWh) is cheapest. Public rapid charging is 40p-80p/kWh — significantly more expensive, roughly equivalent to diesel for high users.
Vehicle Lease or Finance
LEVC TX Black Cab lease starts at approximately £700-£850/month. Toyota Prius PHV lease £350-£450/month. Tesla Model 3 £500-£650/month. Weekly rental from fleet operators: £250-£400/week (includes insurance in some cases).
PCO / Council Licensing
London PCO licence (TfL): driver licence application approximately £400-£500, including medical, DBS and topographical assessment. Vehicle licence approximately £300. Three-year renewal. Outside London, local council PHV licences cost £150-£400.
Maintenance and Servicing
High-mileage taxi use (60,000-80,000 miles/year) accelerates wear on tyres, brakes and consumables. Toyota Prius is popular for reliability. EVs have lower service costs (no oil changes) but tyre costs remain high due to torque and weight.
Should You Use HMRC Simplified Mileage or Actual Expenses?
One of the most important tax decisions for taxi drivers is whether to use HMRC's simplified mileage allowance or claim actual vehicle expenses. The mileage allowance allows you to claim:
- 45p per mile for the first 10,000 business miles in the tax year
- 25p per mile for every business mile above 10,000
This covers all vehicle costs — fuel, insurance, depreciation, maintenance — and is simple to administer (just record mileage). For a driver covering 50,000 business miles per year, the claim would be: (10,000 x 45p) + (40,000 x 25p) = £4,500 + £10,000 = £14,500 per year in allowable deductions.
Claiming actual expenses works better when your real vehicle costs exceed the mileage allowance calculation. This typically applies when you have: a high-cost lease (over £600/month), expensive insurance, or have purchased the vehicle outright and are claiming capital allowances (100% first-year allowance available for zero-emission vehicles). An accountant familiar with the taxi trade can run the numbers for your specific situation.
VAT and Taxi Drivers in 2026
The VAT registration threshold for 2025/26 is £90,000 in taxable turnover. The vast majority of individual taxi and private hire drivers earn below this level and are therefore exempt from VAT registration. This means you do not charge VAT on fares and do not submit VAT returns — significantly simplifying your accounting obligations.
If your turnover does approach or exceed £90,000 (possible for very high-earning London Black Cab drivers or those who also operate multiple vehicles), you must register for VAT. Standard-rated fares (taxis are standard rated, not zero-rated) would then attract 20% VAT on your fares. This has a complex pricing impact and requires specialist advice.
Regarding Uber's VAT: following HMRC's ruling that Uber operates as a transportation provider rather than an agent, Uber charges VAT on the full fare. This VAT goes to Uber (as the taxable supplier), not the driver. This change, implemented in 2022, did not create any new VAT obligations for drivers — your position remains unaffected unless your own turnover exceeds the threshold.
Getting Started as a Taxi or Private Hire Driver in 2026
The barriers to entry for taxi driving in the UK vary enormously by vehicle type and location:
- Private hire driver (most UK cities): Apply for a private hire driver licence from your local council (typically £150 to £350, requires DBS check, medical, DVLA driving history check), obtain a PHV vehicle licence for your car (requires mechanical inspection), and then sign up with a platform or local operator. Many people begin driving within 6 to 8 weeks of deciding to start.
- London PHV (Uber/Bolt etc.): Apply for a TfL Private Hire Driver Licence (approximately £400-£500 including medical and DBS). From 2023, all new PHV licences in London require zero-emission vehicles. Processing typically takes 8 to 12 weeks. Once licensed, you can apply to Uber, Bolt and other platforms directly.
- London Black Cab: Pass The Knowledge — one of the most rigorous professional examinations in the world. Applicants must memorise 320 standard runs (over 25,000 streets) within a 6-mile radius of Charing Cross. Most people take 2 to 4 years and appear for multiple appearance exams. The Knowledge costs approximately £1,000 to £3,000 in study materials, courses and examination fees. Once licensed, you own your full fare income with no commission to any platform.
Frequently Asked Questions: Taxi Driver Salary UK 2026
Tips to Maximise Taxi Driver Take-Home Pay
- Work peak hours strategically: Friday and Saturday evenings (6pm to 3am) and Monday to Friday 7am to 9am are peak demand periods in most UK cities. Earnings per hour can be 40 to 80 percent higher than off-peak daytime rates due to surge pricing.
- Airport runs: Airport contracts or positioning at major airports (Heathrow, Gatwick, Manchester, Birmingham) can deliver high-value single jobs with guaranteed fares. Heathrow to Central London is a £55 to £90 run.
- Build a regular client base: Corporate clients, regular school runs, hospital appointment transfers and event contracts provide predictable income. Platforms take no commission on work you source independently (as long as you book correctly under your PHV licence conditions).
- Keep meticulous records: Detailed mileage and expense records allow you to claim every legitimate deduction on your Self Assessment. Even small items add up — £500 in overlooked expenses at a 20% tax rate costs you £100 in unnecessary tax.
- Consider EV for the tax benefits: First-year 100% capital allowance on zero-emission vehicles significantly reduces your tax bill in the year of purchase. Combined with lower fuel costs, EVs make strong financial sense for high-mileage drivers.
- Use an accountant: A specialist taxi trade accountant typically costs £300 to £700 per year but saves most drivers significantly more than that in tax efficiency. The cost is also fully tax-deductible.
- Plan for the January Self Assessment deadline: Put aside 25 to 30 percent of your monthly profit in a separate account for tax. The Self Assessment deadline is 31 January for online returns. Missing it incurs automatic penalties starting at £100.
The taxi and private hire industry remains one of the most accessible routes into self-employment in the UK. The barriers to entry are low for PHV drivers, the demand for transport services is resilient, and the flexibility of working hours is genuinely unmatched by most employment options. However, the headline fares figures from platforms are not your income — after commission, vehicle costs and tax, the actual take-home can be significantly lower. Use our calculator above with your real numbers to understand exactly what your chosen working pattern will deliver in net income.