#UberTaxBracket #SecondJobRole #SideHustle #TaxTips
Hey everyone! 👋 So, I’m considering becoming an Uber driver part-time on weekends to make some extra cash. But here’s the dilemma – I’m in the 40% tax bracket. Will I end up losing most of my earnings to taxes? 💸
Here are some key points to consider:
– Can I offset Uber earnings with deductible expenses like food, vehicle maintenance, and fuel?
– Is it better to use my primary vehicle for Uber rather than buying a separate car?
– Will the potential tax benefits outweigh the high tax rate?
– Is being an Uber driver worth the time and effort, especially with a full-time job and working from home five days a week? 🚗💼
I’m also thinking of using the extra income to invest in the stock market. Any past or current Uber drivers here who can share their experiences and offer some advice? 📈
Let’s discuss how to navigate the tax implications and whether becoming an Uber driver is a smart move in my situation. Your insights and suggestions would be greatly appreciated! 🤔💡
In England, Wales and Northern Ireland (not sure about Scotland’s tax bands) you’re taxed at 40% on annual earnings over £50,271.
I imagine that most Uber drivers are basic rate tax payers and I’d guess that it doesn’t make sense for a higher rate taxpayer to do Uber if you need the money – if you stuff into your pension everything you earn over £50,271 then you get to keep it, but that doesn’t pad your wallet right now.
Probably not worth it, Uber pay is pretty shoddy at best, and in the UK it’s not as simple as downloading an app, and getting going. You and the vehicle have to be registered as private hire vehicle and driver with your local council etc, and there are costs involved in that. You also need specific insurance for minicab drivers.
If you want to go down this type of side gig on a part time basis, generally it is considered better doing food delivery etc and you have less issues, don’t need the same licenses etc, just the insurance.
Yes you’ll be taxed at 40% if you’re already in that threshold.
>Presumably I can wipe out things like food when I’m working as expenses
Nope.
>vehicle maintenance and fuel also as expenses etc
If you’re a PAYE employee, also nope. You get tax relief on 45p/mile.
If you’re self employed and invoice Uber etc, then you can deduct fuel+maintenance as an expense, also a capital allowance for the purchase.
Don’t forget, you’ll also need hire+reward insurance.
>I guess I could use my primary vehicle as the Uber car, and write off maintenance as expenses, rather than buying an additional car…
As above. If you were self employed and use your normal car for some business use, you would have to also include a deduction for the private use of the vehicle when calculating the capital allowance.
>is it worth my time?
Only you can answer that
Don’t bother. There are rules regarding licencing vehicles, they have to be a certain size and a certain age in most areas. Your first hire and reward insurance at 23 is likely to be over 2k a year easily. Uber also restrict you to 10 hours driving each day. Let’s say you do a Friday and Saturday night and make 300 total. You have to pay fuel, insurance, car payments, budget for your badges and then try make money for you.
It’s not worth it.
Anything extra in the 40% is not worth it.
Only worth doing it through an Ltd, otherwise 2 of 5 hours or work are for the government.
You can also expense quite a lot of things through an Ltd.