If you cannot pay your Uber tax bill in full, contact HMRC as close to the due date as you can rather than waiting until you have saved the whole amount. HMRC can agree monthly payments when it judges them affordable, and it asks about income and spending, which takes some preparation when driving income moves from week to week. This article covers that preparation, using the January payment date as the usual starting point.
Part of a January bill is often the first payment on account for the following year, so check the split on your HMRC statement before deciding what you can afford. A payment plan does not replace the return: HMRC says a plan cannot be set up until the return has been filed, so the Self Assessment filing steps for Uber and private hire drivers still come first.
Online Payment Plan or a Call to HMRC
HMRC’s online payment plan service lets you set up monthly Direct Debits yourself if your returns are up to date, you owe £30,000 or less, and you have no other tax debts or HMRC payment plans. You must be named on the UK bank account and able to authorise the Direct Debit without anyone else’s signature. Payments include interest at the Bank of England base rate plus 4%.
In its December 2025 announcement, HMRC said 17,955 Self Assessment customers had set up an online plan between 6 April and 30 November 2025. It also said anyone owing more than £30,000, or needing longer to pay, can still apply but must contact HMRC directly. The same route applies if you have a VAT debt or an existing plan alongside the Self Assessment balance.
HMRC also encourages filing early so that you know what you owe sooner, while the tax itself is still due on 31 January. For a 2025 to 2026 return, filing in November or December leaves time to complete the worksheet below, set aside whatever lump sum you can and make contact before the due date rather than after a reminder letter.
How HMRC Works Out an Affordable Amount
HMRC’s guidance on payment difficulties says the monthly amount is based on what you have left after rent, food, utility bills and fixed outgoings such as subscriptions. You will usually be asked to pay around half of what is left over each month. HMRC will expect any savings or assets to be used to reduce the debt as much as possible, although it does not count money held in a pension pot as savings.
There is no fixed time limit on a plan. Its length depends on what you owe and what you can pay, and paying more each month reduces the interest. If you have already had independent debt advice, a Standard Financial Statement from that adviser is accepted as evidence of your income and spending.
Income and Outgoings Worksheet for Drivers
A single good week overstates what you can afford, and a single quiet week understates it. Work from the last 12 weeks of platform statements, including any weeks off the road, and convert each weekly average to a monthly figure by multiplying by 52 and dividing by 12. Count cash fares you collected, since they never reach the bank, and leave out money that is not yours, such as refunds passed back to passengers. Keep driving costs separate from household spending, because the car has to stay on the road for the plan to work.
The example below is fictional and illustrates the method only. Its figures are assumptions, not typical driver earnings or costs.
| Line | Weekly average | Monthly figure | Evidence to keep |
|---|---|---|---|
| Platform earnings after fees | £900 | £3,900 | Last 12 weekly statements from each app |
| Car hire | £240 | £1,040 | Hire agreement and payments |
| Fuel or charging | £90 | £390 | Receipts and card payments |
| Motor insurance | £45 | £195 | Policy schedule |
| Business phone and data | £6 | £26 | Bill showing the business share |
| Licence renewal set-aside | £6 | £26 | Renewal notice and fee |
| Money available from driving | £513 | £2,223 | Earnings less the five costs above |
| Rent | Not weekly | £750 | Tenancy agreement |
| Council Tax | Not weekly | £130 | Council Tax bill |
| Energy and water | Not weekly | £160 | Latest bills |
| Food and household | Not weekly | £300 | Bank statements |
| Other fixed outgoings | Not weekly | £40 | Direct debit list |
| Left over each month | Not weekly | £843 | Money available less household costs |
In this example the driver has £843 left each month, so HMRC’s usual approach points to an offer of around £420. Against a fictional £3,400 bill, that would clear the balance in a little over eight months before interest. Note any other tax you need to pay as well, because HMRC asks about it, and a driver who reserves nothing for the next bill can end up needing a second plan.
Information to Have Ready
- Your Unique Taxpayer Reference. The payment reference for a Direct Debit is the 10-digit UTR followed by the letter K.
- The amount owed, the tax year it relates to and confirmation that the return for that year has been filed.
- Details of a UK bank account in your name that you can authorise a Direct Debit from.
- The completed worksheet, with 12 weeks of statements from every platform and the matching bank statements.
- Savings, investments and any lump sum you can pay now, even if it is small.
- Other tax you owe or will soon owe, such as VAT, and any existing HMRC plan.
- Other priority debts and their monthly payments, such as rent arrears or Council Tax.
- A Standard Financial Statement if a debt adviser has prepared one.
- Any health condition or personal circumstance that makes the call difficult, so you can ask for HMRC’s extra support.
Penalties, Interest and Keeping the Plan
Interest runs from the due date until you pay, whether or not a plan is agreed. HMRC’s interest rates page lists late payment interest at 7.75% from 9 January 2026. Bills for 2025 to 2026 still carry the existing late payment penalties for a missed Self Assessment deadline, and HMRC presents its online plans as a way to avoid them.
Drivers who joined Making Tax Digital in April 2026 move to new penalties for 2026 to 2027 onwards. HMRC’s MTD penalty guidance gives 30 days from the due date in the first year to pay or contact HMRC about a plan, and says penalties are paused from the date you contacted HMRC if a plan is agreed and you keep to it.
If you miss an instalment, HMRC says it will contact you and try to rearrange the plan, and a new tax bill may be added to it. Tell HMRC if your income changes. If you neither contact HMRC nor agree a plan, it can use debt collectors, take money from wages or, in England, Wales and Northern Ireland, from bank accounts, and in the end take court or bankruptcy action.
Once the old balance is under control, a Budget Payment Plan lets you pay weekly or monthly towards the next bill by Direct Debit, which can suit a weekly earning pattern. You must be up to date with your last bill to set one up, and you can pause it for up to six months. An estimate of the tax on your driving profit helps set the weekly amount.
Free Debt Advice and Professional Help
If tax is one of several debts, free advice comes first. HMRC’s help and advice page points to MoneyHelper in England and Wales, Scotland Debt Solutions in Scotland and Advice NI in Northern Ireland. You cannot appeal against HMRC’s decision on a payment plan, but you can complain about how you were treated.
No adviser can promise that HMRC will accept a particular offer. What we can do through our HMRC compliance support is check the amount on your statement, help you complete the worksheet from your records and prepare you for the conversation with HMRC. Tell us the amount owed, the tax year and whether the return has been filed when you ask for a fixed quote.
Official sources checked 22 October 2026. The worksheet and figures are illustrations for UK sole-trader drivers. Company tax debts follow separate rules.
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