Uber drivers must additionally pay National Insurance Contributions (NICs) in addition to income tax. Their income and job status determine how much NICs they must pay. They must pay Class 2 and Class 4 NICs based on their profits if they are considered self-employed. They must pay Class 1 NICs based on their earnings if they are considered to be employed.
It is significant to remember that Uber drivers are in charge of accurately documenting their income and outgoings during the tax year. For all company expenses, such as fuel, insurance, and maintenance fees, receipts must be kept. Some of these expenses are also eligible for tax relief, which could lower their overall tax burden.
Uber drivers in the UK can operate as private hire vehicle drivers without a particular license. They must, though, adhere to Uber’s other conditions and have a current UK driver’s license. A background check for criminal activity, a medical evaluation, and a vehicle inspection are among these requirements.
Uber drivers must pay a service charge to Uber for each trip they complete in terms of fees. Depending on the sort of trip and the city they are operating in, the cost varies in size. Uber deducts a commission from the fare as well. Is a PCO license required for Uber? Uber drivers in London must possess a Private Hire Vehicle (PHV) license from Transport for London (TfL). All private hire drivers operating in the city must have this license, sometimes known as a PCO license. Uber drivers in London must possess a PCO license in addition to complying with additional TfL criteria, such as vehicle age restrictions and emissions norms.
In conclusion, Uber drivers in the UK must pay income taxes and National Insurance contributions. They are also accountable for maintaining complete records of their income and outgoings. While there is no formal license required for drivers to work as Uber drivers, they must adhere to certain standards established by Uber and, in some situations, by local authorities like TfL in London.