I am an Uber driver: Do I need to Pay Tax in the UK?

What is Uber?
Uber is a mobile phone app which allows you to book a driver whether you want to go shopping and come back home you need to pick your child from school. The simple theory is that you don't want to use a conventional taxi or cab. There are various types of Uber taxi service where the costs vary
The most obvious reason why it has become so popular not only in the UK but several parts of the world is that it is much cheaper than going with a black cab who can also use the bus lane. Some passengers say it is not a fair play to allow the black cabs to use the bus lane when the others are not allowed. Uber is now available in most cities in the UK

Are You A self-Employed Sole Trader?
Currently, all of Uber’s ‘ drivers also known as Uber Partners as they call them are treated as if they are self-employed. However, as everybody knows there was a recent court case where the judge said otherwise, which will have massive implications on similar industries such as Courier Riders and Drivers, Lorry and Truck Drivers and so forth.
Notwithstanding this recent ruling, if you are an Uber Partner, you still have to think about a few basic expenses. Most of Uber Partners do not call themselves as drivers as they do some other jobs in the day time and Uber is allowing them to make some extra cash. Because of this situational factors, most of the Uber partners might be employed as self-employed at the same time. If they are employed, it is the usual practice that their personal tax allowance (Currently £11,000 for 2015/16 and £11,500 for 2016/2017) is fully utilized on their employment income assuming that Uber Partner is employed full time.

What Are Uber Partners’ Associated Costs?
Even though the following points are useful, this is not an exhaustive list of costs and expenses that are available to every Uber Partner.

Cost of Less than five years old Car
Private Hire Vehicle licence (PHV).
Costs may vary according to where you live.
Cost of Medical Check Up
Cost of Initial Test of Road Worthiness
Cost of Repeat ‘MOT’ style tests every six months
Cost of ‘fast track’ application
Cost of Insurance
Cost of public liability insurance
Cost of Uber training if available such as Travelling and work wares
Cost of Fuel
Cost of Car Rentals
 Uber Service Charges
Cost of Company phone with built in sat nav
Any VAT paid on the above expenses as you are not VAT registered and as a result, VAT is part of your expenditure.

What Is Uber Partner’s Income Level?
Uber claims that on average drivers could make around £565 for a 35-45 hour week, and that’s after it takes its 20% ‘service fee’. The new drivers who sign up after April 24 2016 have to pay an increased fee of 25%. Some Uber Partners say it provides him with a full time wage and they can easily take home around £700 for a 35 hour working week. If they do more vigils, they can even make more than that, which is quire handsome in the current UK job market conditions.
There have been complaints from drivers on chat forums about the time spent waiting for fares. However, some Uber Partners say that they have never waited.

Do the Uber Partners Need to File a Tax Return?
Irrespective of whether you are employed and/or self-employed while working as an Uber Partner, you need to account for your income and expenses on an annual tax return to HMRC. It might be the case that you will not have to pay tax or will have to pay less tax if you are earning much as a result of the availability of the personal tax allowance.