Skip to main content

Birmingham · Hackney carriage · Private hire · App drivers

Taxi and private hire driver accountant in Birmingham.

Tax returns, vehicle costs and simple record keeping for Birmingham taxi, private hire and app-based drivers, from our offices in Sparkhill and Bordesley Green.

Accountants for Birmingham taxi drivers: the direct answer

Most Birmingham taxi and private hire drivers are self-employed, so they file a Self Assessment tax return each year and pay tax on their profit after allowable costs. RR Accountants, a Birmingham practice since 2010 with offices in Sparkhill (B11 4AB) and Bordesley Green (B9 5QE), prepares drivers' tax returns, works out vehicle and running costs the best allowed way, keeps records simple from app statements, and sets drivers up for Making Tax Digital when their income passes the threshold.

Reviewed by Iftikhar ur Rashid, FCCA. General information, not personal tax advice.

What drivers can usually claim

You pay tax on what is left after allowable business costs. For drivers these commonly include:

  • Vehicle costs, worked out either with HMRC's simplified mileage rates or from actual costs (fuel, repairs, servicing, insurance, road tax and capital allowances). You cannot mix the two methods for the same vehicle, so we work out which is better for you before you commit.
  • Licence, badge and vehicle licensing fees and medical checks for your licence.
  • Operator and app commission and booking fees.
  • Phone and data used for work.
  • Car washing and valeting, parking (not fines) and tolls for fares.
  • Accountancy fees.

Records that keep it simple

Most drivers now get weekly or monthly statements from their operator or app. We use those as the backbone of your records, add your cash fares and costs, and keep everything in one place. That makes the yearly tax return quick and gets you ready for Making Tax Digital, which needs digital records and quarterly updates once your takings are over the threshold (over £50,000 from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028).

Drivers we work with

Hackney carriage drivers, private hire drivers working for local operators, and drivers using ride-hailing and delivery apps across Birmingham, Solihull and the wider West Midlands. If you drive for more than one operator, or also work an employed job, we put all of it on one return.

What Birmingham clients say

“The whole team at RR Accountants is very approachable. … I can fully trust them with my numbers.”
Client review on ThreeBestRated
“Very accommodating and cooperative. Excellent knowledge and always a pleasure to deal with. Thanking all at RR Accountants”
Client review on ThreeBestRated
“Very professional and friendly staff … Once you deal with RR accounts you don't want to go anywhere else.”
Client review on ThreeBestRated

Our Birmingham offices

Monday to Friday, 09:30 to 17:30, by appointment.

RR Accountants: Sparkhill (HQ)

380 Stratford Road, Sparkhill, Birmingham B11 4AB

0121 766 5477

RR Accountants: Bordesley Green

64 Yardley Green Road, Bordesley Green, Birmingham B9 5QE

0121 771 2122

Taxi Driver Accountant Birmingham: FAQs

Do taxi drivers need to do a tax return?

If you are self-employed, yes. You register for Self Assessment and file a return each year by 31 January after the tax year ends. If you drive as an employee of a firm, your tax is taken through PAYE instead.

Should I use mileage rates or actual car costs?

It depends on your car and how many miles you do. Simplified mileage is easier; actual costs can give more relief on an expensive or high-running-cost vehicle. Once you choose a method for a vehicle you must keep using it, so we compare both first.

Do I need to register for VAT as a taxi driver?

Only if your taxable turnover goes over the VAT registration threshold, which is £90,000. Most individual drivers are under it. We monitor your turnover and tell you if you get close.

How much does an accountant for taxi drivers cost?

We agree a fixed fee in writing after a free 30-minute call, based on how many operators you drive for and how your records are kept. No hourly billing.

Book a call.

Book a 30-minute call. We’ll confirm whether we’re a fit, and if we are, we’ll tell you exactly what the next step looks like.

Firm-wide leadership: Iftikhar ur Rashid, FCCA. Last updated 2026-11-02.