Driving for Addison Lee: the full guide
Addison Lee is London's largest private hire and courier firm, and it works differently from the apps: most drivers rent a car from it, the work leans on corporate accounts, and holiday pay is paid on every job. Here is how that shapes your money and your tax.
Correct for the 2026/27 tax year. Last checked 29/09/2026.
The apps match you with whoever is nearby. Addison Lee sells a service to businesses, hotels and airport travellers, owns a large fleet, and rents most of its cars to its own drivers. That makes the job more like driving for a firm than for an app, and it changes the tax decisions you have to make.
What you need
A private hire driver licence from Transport for London, both parts, your driving licence, and two documents showing your current address. You do not need private hire experience; Addison Lee trains new drivers and can advise on getting the licence. It also recruits courier drivers.
Renting from Addison Lee or driving your own car
| Rent from Addison Lee | Own car (partner driver) | |
|---|---|---|
| Car | Low or zero emission, typically under three years old | Yours: five years old at most, black or dark grey, from the approved list |
| Weekly cost | Rental that falls as you complete more jobs; first 8 weeks free on current terms | None to Addison Lee, but you pay finance, insurance and maintenance |
| Included | Insurance, maintenance, MOT and PHV checks, replacement vehicle | Nothing |
| You pay | Fuel or charging | Everything |
A rental with insurance and maintenance included is simple and predictable. It is also the largest single cost most rental drivers have, and it arrives every week whether the work does or not.
The rental and your tax
A rental car forces a real choice. The mileage rate, 55p for the first 10,000 business miles and 25p after, is meant to cover the whole cost of a vehicle, so if you use it the rental is not claimable on top. Claim actual costs instead and the rental, the charging or fuel and your other vehicle costs all come off, but the mileage rate does not.
An illustration for one driver doing 30,000 business miles a year in a rented electric car, charging at about 5p a mile. The rents are examples, not Addison Lee's prices.
| Rent £150 a week | Rent £220 a week | |
|---|---|---|
| Mileage rate claim | £10,500 | £10,500 |
| Actual costs: rental for 52 weeks | £7,800 | £11,440 |
| Actual costs: charging | £1,500 | £1,500 |
| Actual costs total | £9,300 | £12,940 |
| Better method | Mileage rate | Actual costs |
The higher your rent and the lower your mileage, the more likely actual costs win. Weeks the car sat unused, and any personal use, reduce the actual-costs claim, so keep a log either way. Renting a PCO car: mileage rate or actual costs has the full method.
The work and the pay
A large share of Addison Lee's work is corporate account jobs and pre-bookings, including airport runs. Account customers pay Addison Lee, which pays drivers weekly. Addison Lee says its average job value is at least £32, higher than a typical app trip, because the journeys are longer and pre-booked.
Addison Lee pays holiday pay and optional pension contributions on every job. Holiday pay is part of what the business receives, so it goes in your turnover, and nothing is deducted from it for tax.
Worker status
In 2017 an employment tribunal found three Addison Lee drivers were workers and should be paid for time logged into the driver system. The Employment Appeal Tribunal agreed and in 2021 the Court of Appeal refused Addison Lee permission to appeal. Around 700 more drivers had their claims heard in late 2024, and a tribunal found in January 2025 that they too are workers.
None of that changes your tax. You are self-employed for HMRC and file a Self Assessment return. If you think you are owed holiday pay or minimum wage for a past period, the time limits in employment tribunals are short, so take advice promptly.
Sources
Common questions
- Do Addison Lee drivers get holiday pay?
- Yes. Addison Lee says it pays holiday pay, and optional pension contributions, on every job. It is part of what you are paid, so it belongs in your turnover along with the fares.
- Can I drive my own car for Addison Lee?
- Yes, as a partner driver, if you hold a PCO licence and the car is no more than five years old, black or dark grey, in good condition, and one of the approved models, which include Teslas, VW ID models and several Mercedes and BMW saloons.
- Is Addison Lee car rental tax deductible?
- Only if you claim actual vehicle costs. The mileage rate is meant to cover the whole cost of having a car, so a driver claiming it cannot also deduct the rental. Which method is worth more depends on your mileage and the weekly rent.
- Are Addison Lee drivers workers?
- Tribunals have found that they are. A 2017 tribunal ruling was upheld on appeal and the Court of Appeal refused Addison Lee permission to appeal in 2021, and a January 2025 tribunal found the same for a larger group of drivers. For tax you remain self-employed.
About the author
Issac Davies, Founder of JoltMile
Issac Davies drives for gig apps in the UK and built JoltMile to show drivers what a shift actually pays once fuel, insurance and tax come off. Every guide here is checked against HMRC and gov.uk guidance, and is information rather than tax advice.
Track this automatically
Shift log · Expenses · Estimated tax: the JoltMile app works this out from your own shifts. Your first 10 shifts are free.
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