How much do taxi drivers earn?
Are you considering becoming a taxi driver and want to know how much taxi drivers earn? In April 2022, new tax controls for all taxi drivers in the UK will take effect. Therefore, this is the best time to discuss the opportunities in this industry. Interestingly, the total number of licensed taxis and private rental vehicles decreased by 15.9% in 2021. This decline is mainly due to the corona pandemic. Subsequently, this could offer new and existing drivers the opportunity to take advantage of the demand for taxi drivers.
Acorn insurance has been a specialized provider of taxi insurance since 1982. In this guide, you can find out how much taxi drivers earn from private landlords, Hackney and rideshare drivers.
Taxi driver salary in the UK
How much you can earn as a taxi driver depends on several factors. A UK taxi driver can earn between £14k and £40k a year. It may depend on your location, the volume of work and your level of experience. However, the average salary for taxi drivers is £24k per year or £415 per week. After all, their earning potential is significantly lower than that of black taxi drivers in busy cities like London due to the lack of demand for drivers in small towns. *
It gives an hourly rate of between £9-15. Low-paid drivers would have to work more than 60 hours a week to earn an annual salary of around £30k. So if you work strategically in high-volume areas during peak hours, you can get a higher salary per year. In addition, they would have to work fewer hours to achieve this.
Example taxi driver income
Below is a selection of locations in the United Kingdom and the average earnings that taxi drivers can expect there.
Aberdeen: with 60% of taxi drivers in Aberdeen now over 60, it may be worth finding a driver in Aberdeen. With a 50% drop in taxi drivers returning to work after lockdown, Aberdeen has only 500 cars serving 230,000 people.
Aberdeen drivers can earn between £8 and £11 per hour, which equates to an average take-home of between £950 and £1,200 per month.
Belfast: with an average income of 8% lower, Belfast taxi drivers can expect to earn between £18k-20k based on a 30-45 hour workweek. It is due to a decline in demand for inner-city taxis since the introduction of the Glider bus. This service connects East Belfast, West Belfast and the Titanic Quarter to the city centre.
London: generous top rates, increased demand and higher cost of living. These factors mean that London drivers can earn an average of 45% more than other UK drivers. Novice drivers can earn around £21k a year, while more experienced drivers can earn a salary of up to £41K. It supports an hourly rate of around £12-18 with the ability to work long hours for higher earnings.
Peterborough: unsurprisingly, Peterborough’s demand for taxi services Peterborough is high as a busy metropolitan hub. It is reflected in the average monthly income of the driver between £1400-1600. The average salary in Manchester ranges from £19k to £48k approximately.
How are taxi drivers paid?
There are several ways taxi drivers can be paid. Payment methods include card, contactless and cash payments. Since a majority of 83% of drivers are self-employed, all the money earned during the trip (fare and tip) goes directly to them. In addition, ridesharing apps allow passengers to pre-pay for rides directly from their mobile phones, and payment can be received the same day.
Since most taxi drivers are self-employed, they are expected to pay for their vehicle, fuel and other costs such as tolls out of pocket. These costs can be high if not managed and reasonably taken into account. Our blog “How to save fuel” provides tips for saving fuel. Shopping for fuel and driving an economical vehicle during a reasonable trip can help save money in the long run.
Income tax, Social Security and vehicle tax are also essential costs that you must consider as a self-employed taxi driver. You retain the freedom to have family-friendly working hours as a self-employed driver so you can set your schedule and be your boss. This is an ideal career choice for anyone who loves to travel, enjoy their own business and, as a second profession, is an ideal additional source of income. Your income can fluctuate depending on the number of hours you work that day/week/month.
Where can I get taxi insurance?
With 40 years of experience in the insurance industry, we evaluate each taxi driver’s policy individually and specialize in providing special taxi protection to each client. We consider all drivers, even if they have a past conviction or points on their driver’s license. We will strive to help you, no matter your driving background or history.
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Click Request a quote for a free online quote now! At Acorn, we will make every effort to ensure that your taxi insurance policy is tailored to your needs and is suitable for you.