Ride-Hailing Driver Expenses You Can Claim: Evidence Checklist for an HMRC Check

The ride-hailing driver expenses you can claim are the costs you pay wholly and exclusively to earn fares: app service fees, the business share of your phone, licence fees, parking, tolls and either actual car costs or the simplified mileage rate. Claiming them is the easy part. Proving them, if HMRC opens a compliance check, is where drivers come unstuck.

This checklist works through each claim in turn. For every expense it sets out what we would want to see in a client file before we were happy to defend it, how long to keep it, and the reasons HMRC most often knocks it back. If you want the full list of what is allowable, start with our guide to ride-hailing driver allowable expenses. This article assumes you know the list and want your claims to survive scrutiny.

Key takeaways

• You do not send receipts with your return, but you must keep proof and be able to show it to HMRC if asked.
• Keep records for at least five years after the 31 January deadline, so 2026/27 records stay until at least 31 January 2033.
• The flat mileage rate replaces insurance, fuel and repairs. Claiming those on top is one of the most common disallowances we see.
• Congestion and clean air charges for business trips can be claimed. Penalty charges for not paying them cannot.
• If a check letter arrives, reply by the date given, send only what is asked for and get representation early.

What is an expense evidence checklist?

An expense evidence checklist pairs each cost on your tax return with the document that proves it: the amount, the date, who was paid and why it was for the driving business. It is the file you would give HMRC if your return were checked.

What proof does HMRC expect for ride-hailing driver expenses you can claim?

HMRC expects proof that shows what was bought, when, how much it cost and why it was for the business. GOV.UK lists receipts, bank statements and invoices as acceptable types of proof. For mixed-use costs such as a phone, you also need a record of how you worked out the business share.

Nothing gets attached to the return itself. GOV.UK is clear that proof stays with you until HMRC asks for it. When an officer does ask, they tend to look for three things: a document from a third party, a payment trail through your bank or card account, and a link to your driving. A receipt with no payment trail is weaker. A bank line with no description is weaker still.

Think of each claim as a chain with three links. Break one and the officer can reasonably ask whether the cost was private. Keep all three together, month by month, and most queries close quickly.

Expense evidence table: what to keep for each claim

We built the table below from the questions officers put to drivers in practice. Use it as a self-check before you file, and again if a letter arrives. Where a row says "business share", you need workings as well as receipts.

How should you evidence app service fees and commission?

Evidence app service fees with the statements your driver app issues, matched to the money landing in your bank. The key test is consistency: if you report gross fares as income, the fee is a deductible cost. If you report only the net payout, the fee has already come off and cannot be claimed again.

Download the weekly statements as you go rather than relying on an annual summary you may lose access to. Then tick each payout against a bank deposit. App operators now share earnings data with HMRC, as our article on platform reporting and Self Assessment explains, so an officer may already hold a figure to compare with yours.

A gap between your return and that data is not an error in itself. Calendar quarters, refunds and tips can all create differences. What matters is that you can explain the gap, and our checklist for reconciling driver app statements shows how.

How do you prove the business share of your phone and data?

Prove the business share with your itemised bills plus a short written note of the method you used to split them. GOV.UK's own example is a £200 annual bill where £70 is business use, so £70 is claimed. A reasoned percentage you can explain beats a round figure you cannot.

That example comes from GOV.UK's guidance on office and equipment costs. Most drivers keep the app open all shift and use the same handset privately the rest of the time. One method we find holds up is to take a typical month and compare the hours the app was online with total screen time. Another is to split the itemised data and call charges.

Whichever you pick, write it down and keep the sample month. A second handset used only for work is simpler still: claim it in full and keep the contract in your own name. What gets disallowed is the unexplained 100% claim on a phone that also carries the family plan.

Which licensing costs can you claim and what proves them?

Driver and vehicle licence fees, the DBS check and the licensing medical are generally accepted as costs of holding the licence you need to trade. Keep the licensing authority's receipt, the clinic's invoice and the payment line on your bank statement. Claim each one in the tax year you paid it if you use cash basis.

GOV.UK's expenses guide does not name private hire licences, so these claims rest on the general rule that a cost must be wholly and exclusively for the trade. Cash basis has been the default accounting method since the 2024/25 tax year, which means a three-year licence is normally claimed when you pay for it. Keep the paperwork for the whole licence period, not just the year of payment.

Problems arise when the medical was a general check-up rather than the one your council requires, or when a fee is claimed twice across two returns. Write the licence number on the receipt and the risk of a double claim falls away.

What evidence supports vehicle insurance under actual costs?

Under the actual costs method, keep the policy schedule showing hire and reward cover, proof of each premium payment and your business-use percentage workings. If you use the simplified mileage rate instead, insurance is already covered by the flat rate, so claiming it separately will be disallowed.

GOV.UK's vehicles page says the flat rate replaces actual costs such as insurance, repairs, servicing and fuel. On actual costs, your business percentage normally comes from business miles divided by total miles, which is why the mileage log matters even if you never claim 55p. Our personal tax guide to driver expenses compares the two methods in detail.

If your policy also covers social, domestic and pleasure use, only the business share is allowable. An officer will usually ask for the schedule first, because it shows the cover type and the dates at a glance.

Can you claim cleaning and valeting, and how do you prove it?

You can claim cleaning and valeting costs incurred for the driving business, apportioned if the car is also used privately. Keep car-wash or valeting receipts and the matching card payments. If you use the flat mileage rate, the cautious view is that routine cleaning is a running cost already covered by it.

HMRC's guidance does not mention cleaning by name, so we take the safer reading for clients on the mileage rate. A one-off professional clean after a passenger incident is more arguable as a separate cost. Record the date and the trip, and ask your accountant before claiming it. Household products bought in a weekly shop are the item most often struck out.

How do you evidence parking and tolls?

Keep the parking or toll receipt, or the in-app confirmation, alongside a card statement line and a note linking it to a shift. GOV.UK confirms parking can be claimed on top of the flat mileage rate, and HMRC's manual adds tolls and congestion charges where incurred solely for business.

The manual point comes from HMRC's business income manual on simplified vehicle expenses, which says the mileage rate does not include incidental costs of a particular journey. Photograph cash tickets from pay machines before they fade. Airport drop-off charges paid while carrying a passenger fit the rule; parking near home overnight does not.

Are congestion and clean air charges claimable, unlike penalty fines?

Yes, congestion charges paid for business journeys are claimable as incidental travel costs, and clean air zone charges follow the same logic. Penalty charge notices are different: they are fines, and fines for breaking the law are never allowable. Keep the two in separate columns so one never contaminates the other.

HMRC's manual names congestion charges but not clean air or low emission zone charges, so treat those by analogy and check anything unusual with your adviser. GOV.UK's travel expenses page lists fines and penalty charges as not allowable. Keep the payment confirmation email, which shows the date and your registration, and match it to a working day.

A common slip is a single "charges" column holding both the daily fee and the penalty for paying it late. When HMRC strips out the penalty, it may question the rest of the column too.

What proof do you need for accountancy fees?

Keep your accountant's engagement letter and invoices, ideally split between business bookkeeping and accounts work and personal tax return work. GOV.UK says the cost of preparing and submitting your Self Assessment return cannot be claimed, so an unsplit invoice invites HMRC to disallow part or all of it.

That rule sits on GOV.UK's legal and financial costs page, next to the line confirming that accountancy fees for business reasons are allowable. Fees for handling a compliance check follow a separate rule in HMRC's business income manual: extra accountancy costs are not allowable if the check uncovers careless or deliberate errors and additional tax. Ask for enquiry work to be invoiced on its own.

What makes a simplified mileage claim stand up?

A simplified mileage claim stands up when your log records business miles shift by shift and the totals tie back to odometer readings. From 6 April 2026 the rate is 55p a mile for the first 10,000 business miles and 25p after, according to GOV.UK; 45p applied before that date.

The figures come from GOV.UK's simplified expenses page for vehicles, which also bars the rate for vehicles designed for commercial use, such as black cabs, and for any vehicle you have claimed capital allowances on. We have covered mileage evidence in depth elsewhere, so read our guide to answering an HMRC query on a 55p mileage claim and our article on mileage logs and bookkeeping records. The mileage calculator checks your arithmetic.

How long should you keep each type of evidence?

Keep every record for at least five years after the 31 January filing deadline for the tax year it relates to, according to GOV.UK. Records for 2026/27, whose return is due by 31 January 2028, should therefore be kept until at least 31 January 2033. Keep vehicle records longer if you still own the car.

The rule is on GOV.UK's page on how long to keep your records, which also says that if records are lost and cannot be replaced, you must do your best to provide figures and tell HMRC they are estimates. Vehicle purchase papers matter for as long as the car is in the business, because the claim method you chose for it follows the car.

HMRC's Self Assessment manual says an enquiry into an on-time return must usually open within 12 months of HMRC receiving it. Treat that window as the start of the risk, not the end. Longer time limits can apply where errors are found, which is why the five-year rule is a floor.

What should you do if an HMRC check letter arrives?

Read the letter to see which tax year and which figures HMRC is checking, note the reply date, and gather only the evidence it asks for. Keep filing and paying as normal, and appoint a representative early. HMRC's factsheet confirms you can have a professional adviser deal with HMRC for you.

1. Check the letter is genuine and note the case reference, the officer, the tax year and the reply date. Our HMRC support checklist for drivers covers spotting scam contact.
2. Work out the scope. An aspect check looks at one area, often vehicle or phone costs; a full enquiry looks at the whole return.
3. Pull the evidence from the table above for only the expenses in question. Reconcile each figure on the return to its documents before you send anything.
4. Look for errors yourself. If a claim cannot be supported, say so in your reply, because telling, helping and giving access reduce any penalty (see the penalty table below).
5. Ask for more time before the deadline if you need it. HMRC's CC/FS1a factsheet says HMRC may agree extra time for a good reason, such as serious illness or a bereavement.
6. Send copies, never originals, and keep a dated log of everything sent and received. HMRC runs an online service for sending documents during a compliance check, using the case reference on your letter.
7. Keep filing returns and paying tax on time while the check is open. A check does not pause your other deadlines.
8. When HMRC issues a decision you disagree with, act within 30 days of its letter: send new information, ask for an independent review or appeal to the tribunal.

How are penalties for inaccurate expense claims worked out?

HMRC charges a percentage of the extra tax due, called potential lost revenue, based on why the error happened and whether you told HMRC before it found it. According to HMRC's factsheet CC/FS7A, careless errors range from 0% to 30%, deliberate ones 20% to 70%, and deliberate and concealed ones 30% to 100%.

Where you land in a range depends on how far you help. HMRC's CC/FS7A factsheet gives reductions of up to 30% for telling, 40% for helping and 30% for giving access to records. A careless penalty can also be suspended for up to two years if HMRC can set conditions you are able to meet. Interest on the extra tax is charged on top.

Illustrative example: a check into one driver's 2024/25 expenses

This illustrative example uses invented figures. Ravi is a sole trader who drives in the Midlands, lives in England and uses the simplified mileage rate. He filed his 2024/25 return on 18 December 2025, so HMRC could open an enquiry until 18 December 2026. In October 2026 a letter arrives asking about his vehicle and phone costs.

His return showed £38,000 of gross fares and £19,100 of expenses, giving a profit of £18,900. The expenses were:

• App service fees: £9,400, matched to weekly statements.
• Mileage: 18,000 business miles, 10,000 at 45p (£4,500) plus 8,000 at 25p (£2,000), so £6,500.
• Phone and data: £600, the whole bill.
• Licence fees, DBS check and medical: £420.
• Vehicle insurance: £1,800.
• Parking, tolls and congestion charges: £380, of which £130 were penalty charge notices.

The fees, licence costs and mileage are fully evidenced. The insurance fails because the 45p rate already covers it, so £1,800 comes out. The phone claim had no workings; Ravi rebuilds a 60% business share from a sample month, so £240 is disallowed. He spots the £130 of penalties himself and removes them in his first reply. Total disallowed: £2,170.

His profit rises to £21,070. The extra tax is £434 of Income Tax at the 20% basic rate plus £130.20 of Class 4 National Insurance at 6%, the 2024/25 rate on GOV.UK. Potential lost revenue is therefore £564.20. As a careless, prompted error, the penalty range is 15% to 30%, between £84.63 and £169.26, before interest. Full co-operation should place him towards the lower end, though HMRC decides.

What are the common mistakes, and what does each trigger?

The mistakes we see most are claiming car costs on top of the mileage rate, deducting app fees twice, claiming 100% of a personal phone and mixing fines into parking. Each produces extra tax and interest, and a careless error discovered by HMRC can add a penalty of 15% to 30% of that tax.

• Insurance, fuel or repairs on top of the flat rate: the whole amount is disallowed, with a careless penalty likely if HMRC finds it first.
• App fees deducted from net income: a double deduction that HMRC can spot by comparing your return with the app operator's data.
• A round-number phone percentage with no method: often cut back to a figure HMRC considers reasonable, treated as careless.
• Penalty charge notices inside the parking total: never allowable, and they cast doubt on the rest of the column.
• The whole accountancy bill claimed: the return-preparation part is disallowed under the GOV.UK rule above.
• No records at all: estimated figures are hard to defend, and HMRC can charge a separate penalty for failing to keep adequate records. Check the current amount on GOV.UK.
• Ignoring the letter: HMRC's CC/FS1a factsheet says you cannot ignore a formal information notice, and penalties can follow if you do.

If you also have a PAYE job, construction work or a let property, the same evidence rules apply, but costs must sit on the right page of the return. Our guides for drivers with payroll income, CIS work and rental property cover the split.

Key terms

• Compliance check: HMRC's review of whether a return, claim or record is correct.
• Aspect enquiry: a check into one part of a return, such as vehicle costs.
• Potential lost revenue: the extra tax due once an error is corrected; inaccuracy penalties are a percentage of it.
• Prompted disclosure: telling HMRC about an error after you have reason to think it has found it, or is about to.
• Apportionment: splitting a mixed-use cost between business and private use, with workings.
• Simplified expenses: flat rates, such as the mileage rate, used instead of actual costs.
• Cash basis: recording income and costs when money moves; the default method since 2024/25.

How UK Driver Accountants helps

We work only with drivers, on fixed fees from £20 a month, and we are independent of any ride-hailing app. Our HMRC support service covers reading a check letter with you, building the reconciliation schedule, and dealing with the officer on your behalf once you authorise us.

For drivers who would rather never need that, our bookkeeping service keeps receipts, app statements and mileage tied together month by month, so the evidence table above is filled in before anyone asks. You can see what each plan includes on our pricing page.

Next steps

Pick the three largest expense claims on your last return and test each one against the table. If any link in the chain is missing, fix it now while the documents are easy to find. If a letter has already arrived, contact our team with a copy of it and the reply date, and we will tell you what we would send.

Last reviewed 14 November 2026 by the UK Driver Accountants tax team

This article is general information, not personal tax advice. Rules and rates change, so check GOV.UK and speak to a qualified accountant about your own position. If HMRC has opened a compliance check or proposed a penalty, professional representation is recommended before you reply.