Working for Uber, Deliveroo, Bolt or Just Eat means you are self-employed. HMRC treats your gross earnings (before platform fees) as your income. You deduct allowable expenses to arrive at taxable profit. This calculator handles the platform fee structure and compares the mileage rate method versus actual costs.
The HMRC approved mileage rate (45p/mile for the first 10,000 miles) is often the simpler and more generous option for most drivers. Your platform commission is also a fully deductible business expense.
Gig economy driving is a popular way to earn extra income, but it comes with tax responsibilities that many drivers overlook. Whether you drive for Uber, deliver food with Deliveroo or Just Eat, or make deliveries via Amazon Flex, you are self-employed in the eyes of HMRC and must declare your income through Self Assessment.
Gig drivers are classified as self-employed sole traders. You must register with HMRC within 3 months of starting, keep records of all your income and expenses, and file a Self Assessment tax return by 31 January each year. You pay Income Tax on your profits (income minus expenses) and Class 2 and Class 4 National Insurance contributions.
The good news is that gig drivers can claim a wide range of expenses. The most significant is vehicle costs. You can either claim the HMRC mileage rate of 45p per mile for the first 10,000 business miles and 25p thereafter, or claim actual vehicle costs (fuel, insurance, maintenance, depreciation) multiplied by your business use percentage. For most drivers, the mileage rate is simpler and often more generous.
Important: You cannot claim for commuting from home to your first pickup, but you can claim for all journeys between pickups and from your last drop-off home. Keeping a detailed mileage log with dates, start/end locations, and business purpose is essential.
Uber, Deliveroo, Bolt and Just Eat drivers are classified as self-employed independent contractors in the UK. This means you are responsible for your own tax and National Insurance. The platforms do not deduct PAYE — you must register for Self Assessment and pay HMRC directly.
You must register by 5 October after the end of the tax year in which you started driving. The tax year runs 6 April to 5 April. If you started driving in July 2025, register by 5 October 2026. Late registration penalties start at £100.
HMRC can ask for proof of any expense you claim. The essentials:
You have two options, and you cannot switch between them for the same vehicle in the same year:
| Method | Best For | Records Needed |
|---|---|---|
| Simplified Mileage (45p/25p) | High-mileage drivers with cheap cars | Mileage log only |
| Actual Costs | Low-mileage drivers with expensive vehicles, EVs, or financed cars | All receipts + mileage log for apportionment |
A driver doing 30,000 business miles in a £5,000 used Prius should use simplified mileage: 10,000 × 45p + 20,000 × 25p = £9,500 deduction. Actual costs on that car would be far lower.
A driver doing 8,000 business miles in a £35,000 Tesla on PCP should use actual costs: PCP payments (£6,000/year), insurance (£2,000), servicing (£400), apportioned 80% = £6,720 deduction — far more than 8,000 × 45p = £3,600.
Not legally, but it is strongly recommended. A dedicated business account (Starling, Monzo, Tide) makes bookkeeping trivial. You can see exactly what came in and went out without sifting through personal transactions. It also looks more professional if HMRC ever opens an enquiry.
No. HMRC classifies food and drink as personal subsistence unless you are travelling overnight for business. A coffee between fares is not deductible. However, if you buy bottled water specifically for passengers (e.g., for Uber Comfort trips), that is a business expense.
If you use the actual costs method, EV charging is treated exactly like fuel. Keep receipts from home chargers (calculate kWh cost) and public charging networks. If you use the simplified mileage method, charging is covered by the 45p/25p rate — do not claim it separately.
Yes, if it is solely for business purposes. A weekly valet to maintain your Uber rating is deductible. However, if you also use the car personally and the cleaning benefits both, you should apportion the cost. A £20 weekly valet × 52 weeks = £1,040/year deduction if 100% business use.
You declare all platform income on a single Self Assessment return. Add up gross fares from Uber, Deliveroo, Bolt, etc. Deduct all platform fees. Your vehicle costs cover all platforms — do not double-count. Keep separate mileage logs if you want to track profitability per platform, but HMRC only cares about the total.
All calculations are verified against official HMRC thresholds and rates for the 2026/27 tax year. Figures are updated within 24 hours of any HMRC announcement. Calculations are for guidance only — consult a qualified accountant for personalised advice.