Uber Driving as a Second Job

Deiseen

Hi All,

I am looking for some information on working Uber as a second job.

This would bring me into the higher rate of tax, which I understand would severely reduce the amount of money that I am likely to make.

However, if I buy a car (preferably electric) then can I reduce my tax burden on the cost of the car seeing as though I would be using it for employment? Or is the only tax relief available on the cost of charging/fuelling the car?

Any help would be greatly appreciated!

MovingForwards

https://www.uber.com/gb/en/drive/requirements/

I assume you already have the private hire licence?

MovingForwards

Some info about tax deductible items

https://www.cleangreencars.co.uk/taxi-insurance/expenses-can-declare-private-hire-taxi-driver/

But I suggest you look for one covering 2019 in case of any changes.

Pennywise

Deiseen wrote: »

However, if I buy a car (preferably electric) then can I reduce my tax burden on the cost of the car seeing as though I would be using it for employment? Or is the only tax relief available on the cost of charging/fuelling the car?

You can only claim the business use proportion, so if it's 50:50 between private and business use, you can only claim 50% of the total vehicle costs.

Deiseen

That was informative thank you!

Deiseen

Can this be done on the actual cost of the car or just an expense such as the interest owed on any car loan to purchase the vehicle?

unholyangel

Have you actually looked into earning potential?

I ask this because it used to be lucrative for a second job as you could make well over £1000 easily on the weekend. But in the last decade, many people have left the industry for jobs paying £10~ an hour. I'm doubtful it would be financially viable on anything other than full time hours.

If its a second job, you also need to consider whether you'll be available to work during the busy periods or will your earning potential be limited due to the periods you'd be available. Whether you can afford to pay for the car if you are unable to work due to holidays or sickness.

Deiseen

I knew someone would say this! :A

I did, but for some reason I just could not find a single thing about it.

I guess I was looking to specifically into the second job part and that's why my results weren't coming up with anything.

Deiseen

Hi, thanks for the post.

I haven't quite got to the earnings potential yet as I'm still caught on in the cost. Once I've determined this with some certainty then I'll move onto earnings.

I could manage car payments by myself yes and in reality the job would be just to pay for the car so that I don't lose any earnings. Once I can make enough to do that or close to it then I would be happy. If I could make more than that, well that would be swell!

Deiseen

Apologies for all the questions and coming across like a total tax caveman (which I am) but I've three main questions that cover the bulk of what I need to know, so I just need to ensure I am interpreting everything correctly.

1. Am I correct in saying that if my Uber earnings bring me above £50k (I'm currently on about £45kpa) then I would pay 40% tax on any additional hours I work at either job? Or is it different as I would be self-employed as an Uber driver and an employee with my main job?

2. If I purchase an electric vehicle (<50g CO2/KM), can I use 100% of the cost of this vehicle against my first year earnings, assuming I use it only for Business? So for example, if the car is £35,000 and I earn £35,000 then I would essentially not pay any tax on my earnings that year? Is this affected if I fall into the higher tax band?

3. Lastly, if my expenses exceed my earnings in a given year then can this be used to offset some tax on my main job, where I am an employee? Or are they just kept completely separate?

Thanks everyone for the help so far!

Deiseen

Just wondering if anyone has any answers to the above ^^^