The large majority of UK taxi and private hire drivers, including black cab drivers, minicab drivers and app-based PCO private hire drivers (Uber, Bolt, FreeNow), are self-employed sole traders. This guide shows what taxi and private hire drivers take home after Income Tax and Class 4 National Insurance for the 2026/27 tax year, using profit figures after typical running costs such as fuel, vehicle finance, PCO licensing and insurance have already been deducted.
Taxi and Private Hire Driver Earnings Scale 2026/27
Figures are indicative market rates; actual pay varies by employer, region, experience and sector.
Role
Career Stage
Salary Range
Notes
New Private Hire Driver (part-time)
0--1 year
£12,000--£18,000
Part-time app-based driving around other commitments
Full-Time Private Hire Driver
Established
£20,000--£28,000
Full-time PCO app-based or minicab firm driving
Experienced Black Cab Driver
Established
£28,000--£42,000
Licensed hackney carriage, street hails plus bookings
High-Volume Driver (airport/corporate)
Established
£35,000--£55,000+
Airport runs, corporate accounts, strategic peak-hour working
Take-Home Pay Examples
These scenarios illustrate take-home pay at different earnings levels using 2026/27 England tax rates (personal allowance £12,570) and Class 4 self-employed National Insurance. Figures are annual profit after vehicle, fuel and licensing costs.
Self-employed profit
Part-Time Driver
Gross / profit
£22,000
Income tax
-£1,886
National Insurance
-£566
Take-home
£19,548
Monthly
£1,629/mo
Self-employed profit
Full-Time Driver
Gross / profit
£30,000
Income tax
-£3,486
National Insurance
-£1,046
Take-home
£25,468
Monthly
£2,122/mo
Self-employed profit
High-Volume Driver
Gross / profit
£42,000
Income tax
-£5,886
National Insurance
-£1,766
Take-home
£34,348
Monthly
£2,862/mo
Figures are for England, Wales and Northern Ireland. Scottish taxpayers pay Scottish Income Tax rates.
Full Self-Employed Taxi Driver Profit Breakdown
Scenario
Gross
Income Tax
NI
Net/yr
Net/mo
Part-time driver
£22,000
-£1,886
-£754
£19,360
£1,613/mo
Full-time driver
£30,000
-£3,486
-£1,394
£25,120
£2,093/mo
Experienced black cab driver
£35,000
-£4,486
-£1,794
£28,720
£2,393/mo
High-volume/airport driver
£42,000
-£5,886
-£2,354
£33,760
£2,813/mo
Additional Take-Home Pay Scenarios by Profit Level
Most taxi and private hire drivers operate as sole traders, paying Income Tax and Class 4 National Insurance (6% on profits between £12,570 and £50,270, 2% above) on their annual profit via Self Assessment. A smaller number work as employees for a private hire firm on a fixed shift wage, which is instead taxed through PAYE with standard Class 1 employee National Insurance.
Allowable expenses for self-employed drivers typically include fuel, vehicle finance or lease payments, PCO/taxi licence renewal, hackney carriage or private hire vehicle insurance, app platform commission (typically 20--25% for Uber/Bolt), MOT, servicing and a mileage or actual-cost vehicle deduction. The profit figures below already reflect these costs having been deducted.
Annual Profit
Income Tax
Class 4 NI
Net/yr
£22,000
-£1,886
-£566
£19,548
£30,000
-£3,486
-£1,046
£25,468
£42,000
-£5,886
-£1,766
£34,348
Taxi and Private Hire Driving in the UK: What Affects Your Pay?
Black Cab vs Private Hire vs App-Based
Licensed black cab (hackney carriage) drivers can pick up street hails and often earn more per hour in busy city centres, but face high upfront training (The Knowledge in London) and vehicle costs. App-based PCO private hire drivers have lower barriers to entry but pay 20--25% platform commission on every fare.
Vehicle and Licensing Costs
Running costs are the single biggest factor in take-home pay: fuel or EV charging, PCO/private hire licence fees, specialist taxi insurance (often £2,000--£4,000+ a year) and vehicle finance or depreciation can consume 35--50% of gross fares before profit is calculated.
Airport, Corporate Account and Night Work
Airport runs, pre-booked corporate accounts and late-night/weekend surge pricing typically pay significantly more per hour than standard daytime app-based fares, though they require flexible or unsocial working hours.
Employed vs Self-Employed Status
A small number of drivers work as employees on a fixed shift wage for a private hire firm, receiving standard employment protections (holiday pay, sick pay, pension auto-enrolment) but usually earning less than a successful self-employed driver working peak hours.
Important: Salary figures on this page reflect the 2026/27 tax year (6 April 2026 -- 5 April 2027) using England, Wales and Northern Ireland income tax rates. Actual pay varies by employer, region and experience. Always verify current allowances with the HMRC website.
Part-time app-based private hire drivers typically earn £12,000--£18,000 profit a year, rising to £20,000--£28,000 for a full-time PCO or minicab driver. Experienced black cab drivers earn £28,000--£42,000, while high-volume drivers focused on airport runs, corporate accounts and peak-hour surge pricing can earn £35,000--£55,000 or more, though earnings vary significantly with hours worked and location.
What is the take-home pay for a taxi driver with £30,000 profit?
On £30,000 annual profit in 2026/27, a self-employed taxi or private hire driver would pay approximately £3,486 in income tax and £1,046 in Class 4 National Insurance, giving a net take-home of around £25,468 per year (roughly £2,122 per month). This is profit after fuel, vehicle and licensing costs have already been deducted.
How are self-employed taxi drivers taxed?
Self-employed taxi and private hire drivers pay Income Tax and Class 4 National Insurance (6% on profits between £12,570 and £50,270, 2% above) on their annual profit via Self Assessment. Drivers must keep records of fares received and all allowable business expenses to calculate profit accurately.
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What expenses can taxi and private hire drivers claim?
Common allowable expenses include fuel or EV charging, vehicle finance/lease or a mileage allowance, PCO/private hire licence fees, specialist taxi insurance, app platform commission, MOT, servicing, cleaning and a phone/data allowance for the booking app. Keeping accurate mileage and expense records is essential for an accurate Self Assessment return.
How much commission do Uber, Bolt and FreeNow charge drivers?
App-based platforms typically charge 20--25% commission (a 'service fee') on each fare, deducted before the driver's payout. This is a major factor in why gross fares look much higher than a driver's actual take-home profit.
Do taxi drivers get a workplace pension?
Self-employed taxi drivers are not automatically enrolled into a workplace pension and must arrange their own pension, typically a personal pension or SIPP. A small minority of drivers employed directly by a private hire firm on a fixed wage are auto-enrolled if earning above £10,000 and aged 22 or over.
What licence do you need to become a taxi or private hire driver?
Drivers need a local authority-issued taxi (hackney carriage) or private hire driver licence, which requires an enhanced DBS check, a medical examination and, in London, either 'The Knowledge' (for black cabs) or a topographical assessment (for private hire). Requirements and fees vary by licensing authority.
Is black cab driving more profitable than app-based private hire?
Licensed black cab drivers can accept street hails in addition to bookings and often earn more per hour in dense city centres, but face substantially higher training time, vehicle costs (purpose-built taxis) and licensing fees than app-based private hire drivers, so the higher earning potential comes with higher upfront investment.
Is there a difference between city and regional taxi driver earnings?
Yes. London, Birmingham, Manchester and other major cities generally offer higher fare volumes and surge pricing than smaller towns, though higher vehicle insurance and licensing costs in major cities can offset some of the extra earnings.
Do taxi drivers in Scotland pay different income tax?
Yes. Scottish taxpayers pay Scottish Income Tax rates across six bands (19% starter through 48% top rate), which can mean paying slightly more or less than the rest of the UK figure shown on this page depending on total income.
