How to find VAT advice for TfL-licensed Uber drivers
Find out more about how VAT applies to TfL-licensed Uber drivers and how to get tax advice
This article provides information to help you understand how VAT might impact you. Taxes can be complex and we recommend you do your own research as this information is not exhaustive and does not constitute tax advice.
For specific VAT advice, we recommend you seek independent tax advice. To help you with this, Uber has put together a panel of independent accounting firms. You are under no obligation to use this panel, and you can seek your own advice. Find out more information below.
What is VAT?
VAT (Value Added Tax) is a tax assessed on supplies of goods and services. When you supply private hire services to Uber, or other goods or services, you may need to charge VAT if you are VAT registered.
You must register for VAT in the UK if your turnover goes over £90,000 in any 12 months - or if you know that it will. Check the UK government’s VAT registration page for more information on VAT thresholds.
You can also voluntarily register for UK VAT if your turnover is below the VAT threshold.
How does VAT apply to driver payments from Uber?
From 2 January 2026, the Government changed VAT regulations for private hire operators. In response to this change, from 26 January 2026, TfL-licensed Uber drivers who are VAT-registered will be paid an additional 20% VAT by Uber on top of the payment for the trip.
Drivers will have to pay some, or all of that, as VAT to HM Revenue & Customs (HMRC) on a regular basis as required. Uber has provided more information below, with examples, to help you understand what registering can mean for a typical Uber driver. However, we recommend you speak to an independent tax adviser, such as one of the independent accounting firms below, to decide if it's the right choice for you to register.
As a Driver on Uber, you may want to consider registering for VAT because it may mean you are able to earn more. Read on to find out more.
Image 1: Driver VAT Schemes: Standard Rate vs. Flat Rate
Image 2: VAT Flat Rate Scheme: Example Calculation
This is only an example. The exact benefit depends on your personal situation, including other income or expenses. We recommend you speak to an independent tax adviser, such as one of the independent accounting firms listed below, to decide whether VAT registration is the right choice for you. Please note that potential benefits apply to earnings from Uber only.
Uber support for VAT advice and registration
We want to make it as easy as possible for you to understand the impact of VAT registration for your earnings. You can choose to get advice from your own accountants, or with a selected panel of independent accounting firms. Either way, we recommend you seek independent tax advice in relation to your personal circumstances.
If you choose to get advice and register with your own accountant | If you choose to get advice and register with the Uber-selected panel |
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Free Advice and Registration Support
In addition to the free advice and VAT-registration support, some firms also offer ongoing VAT-filing support. This is an additional optional service, not covered by Uber. We have detailed the costs below, you can compare the costs and services for each firm and decide if you want to get additional support.
Beamin
- Free VAT Registration for Uber drivers, do not provide advice
- Optional monthly tax filing at £21 + VAT per month
EaziTax
- Free tax advice and VAT registration for Uber drivers
- Optional monthly tax filing at £35 + VAT per month
Tax Mouse
- Free tax advice and VAT registration for Uber drivers
- Optional monthly tax filing at £30 + VAT per month
AGP Accountants
- Free advice and VAT registration for Uber drivers
- Optional monthly tax filing at £66 + VAT per month
Taj Accountants
- Free advice and VAT registration for Uber drivers
- Optional monthly tax filing at £24 + VAT per month
JK Accountants
- Free advice and VAT registration for Uber drivers
- Optional monthly tax filing at £100 + VAT per month
Frequently Asked Questions (FAQ)
- Do I have to register for VAT?
This depends on your earnings and whether you are above the VAT threshold. If you are below the threshold, VAT registration is not mandatory. If you are unsure, we strongly recommend getting independent tax advice before deciding to register.
- Why is Uber encouraging TfL-licensed drivers to get tax advice?
The Government has changed the PHV sector VAT rules. These changes mean TfL-licensed drivers at Uber who are VAT-registered will be paid an additional amount of VAT by Uber on top of their earnings. They will have to pay some, or all of that, as VAT to HMRC as required. Uber recommends drivers get independent advice if they are unsure whether VAT registering is best for them.
- What is the Flat Rate Scheme (FRS)?
FRS is a simplified VAT scheme where:
- Drivers usually pay 10% to HMRC (9% in your first year of registration)
- You may not need to track expenses
- VAT admin may be simpler
It is important to consider your personal circumstances when deciding whether to register for FRS or the standard scheme.
- What happens after I register?
Please upload your VAT certificate with Uber in the Documents Section of your profile. You should seek independent tax advice to understand your VAT return and ongoing VAT compliance obligations.
- Can I switch accountants later?
Yes. You should be free to change accountants if your needs change. You should review any agreement entered into with your advisor about any notice you might need to provide them to end your agreement.
- Will Uber tell me which accounting firm to choose?
No. Uber helps to connect you with accounting firms and provides funding support, but the decision on the accounting firm is yours, and you are free to use your own accounting firm.
- When will I be paid the £150?
If you have registered independently, you will receive the £150 as a one-off payment within thirty working days of uploading your VAT certificate. If you have registered with the support of one of the independent accounting firms on the website, you do not have to do anything, as Uber will pay the accounting firm directly.
