Taxis & ride-hailing

Conditions

• Taxi and ride-hailing fares for qualifying business journeys are an allowable travel cost. HMRC's self-employed expenses guidance explicitly lists 'taxi fares' as allowable (GOV.UK, updated November 2024). The test for the self-employed is wholly and exclusively for the trade.
• Commuting — travelling from home to your regular permanent workplace — is not allowable, whether by taxi, ride-hailing app, train or any other means.
• For employees, taxi fares to a temporary workplace on a qualifying business journey are allowable, and the employer can reimburse them free of tax and National Insurance where the journey qualifies. Employees completing Self Assessment can claim tax relief on unreimbursed amounts.
• There is a specific exemption for employer-provided taxis home from work under section 248A ITEPA 2003 — broadly, where an employee works later than their usual hours and the lateness is irregular, the time is 9pm or later, and public transport is unavailable or unsuitable. This is an employer arrangement rather than a personal expense claim. You may want to verify the exact conditions against current HMRC guidance at GOV.UK before relying on it.
• Where a journey has both a business and private leg — for example, a taxi from a meeting to a personal destination — only the business portion is allowable.

Common mistakes

• Claiming every Uber receipt without recording the business purpose of each individual journey.
• Claiming a taxi for what is effectively commuting to a regular workplace.
• Assuming the late-night employer exemption applies without checking whether all the conditions are met.

What to keep

• Digital receipts from the taxi or ride-hailing app — most platforms provide a full downloadable journey history.
• A brief note of the business purpose for each journey, added at the time or shortly after.

Real-world example

A sole-trader consultant takes an Uber from a client's office to a second client meeting across the city. Both fares are allowable business travel. The ride home afterwards is private and not claimable.

Frequently asked

Related allowances