Quick answer
Delivery riders and drivers are usually self-employed, so you report your earnings through Self Assessment and pay Income Tax and Class 4 National Insurance on profits. You can claim mileage or vehicle costs, phone and equipment expenses against your income.
Updated October 2026 · Figures based on 2025/26 rates
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Registering
Register with HMRC as soon as you begin and keep records of income from each platform, including weekly statements and tips.
Expenses you can claim
Mileage at 45p or 25p a mile for cars and vans, 24p for motorbikes and 20p for bicycles, plus insurance, delivery bags, phone costs and helmets or safety clothing.
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Working for several apps
Combine income from all platforms in one set of accounts and claim expenses once, based on total business use.
Payments and deadlines
File by 31 January and pay your bill the same day. If you also have a job, tax through PAYE does not cover your delivery earnings.
Are delivery riders self-employed for tax?
Most people who deliver for platforms such as Deliveroo, Just Eat or Uber Eats are treated as self-employed for tax. That means the platform does not deduct Income Tax or National Insurance from your earnings. You are responsible for reporting your profit on a Self Assessment return and paying the tax yourself. If you earn more than the £1,000 trading allowance from self-employment in a tax year, you normally need to register with HMRC and file a return. Platforms may also share earnings data with HMRC, so the figures on your return should agree with your own statements.
Choosing between mileage and actual costs
You have two broad ways to claim vehicle costs. The first is the simplified mileage method: 45p per mile for the first 10,000 business miles in a year and 25p per mile after that. This is intended to cover fuel, servicing, insurance and wear and tear, so you cannot also claim those running costs separately. The second is to claim the actual business share of running costs, plus capital allowances for the vehicle. For many riders using a car, mileage is simpler. Check the rules for bicycles and motorcycles in current HMRC guidance, as different rates may apply.
Whichever method you pick, you need a record of business miles. A simple log with date, start and end points and the distance is enough. Miles between home and a regular place of work are generally not allowable, but trips between delivery locations while you are logged in normally are.
A worked example
This is an illustrative example, not a real client. Dev delivers part-time using his car and has no other income. Over the tax year the platform pays him £22,000. He drives 12,000 business miles, buys a phone mount and thermal bag for £150 and pays £450 for a phone contract that he uses exclusively for work.
| Item | Working | Amount |
|---|---|---|
| Mileage claim | 10,000 x 45p = £4,500, plus 2,000 x 25p = £500 | £5,000 |
| Other costs | £150 + £450 | £600 |
| Taxable profit | £22,000 – £5,000 – £600 | £16,400 |
| Income Tax | (£16,400 – £12,570) x 20% = £3,830 x 20% | £766 |
| Class 4 NI | £3,830 x 6% | £229.80 |
| Total | £766 + £229.80 | £995.80 |
His profit is above the Small Profits Threshold, so he is treated as having paid Class 2 for state pension credit purposes, with no separate Class 2 charge. If he had claimed the trading allowance of £1,000 instead of real costs, his costs would have been far lower, so the actual-cost route is clearly better for him. Remember that this bill is paid in January. If it is more than £1,000 and less than 80% was collected at source, payments on account would apply the following year.
Common mistakes
- Claiming mileage and fuel or insurance for the same vehicle.
- Forgetting to keep a mileage log, which leaves the claim hard to defend.
- Treating platform payments as the profit rather than deducting costs.
- Ignoring the tax bill during the year and spending all the income.
- Not registering for Self Assessment by 5 October after the end of the tax year.
A short checklist
- Download your platform earnings statements for the tax year.
- Keep a mileage log or record your actual vehicle costs.
- Keep receipts for equipment such as bags, phone mounts and waterproofs.
- Set aside a percentage of every payment for tax.
- Register, file by 31 January and pay on time.
Related reading
Our guides on Uber driver tax, HMRC’s simplified mileage rates, simplified expenses for the self-employed and how much to set aside for tax may help. See also our Self Assessment page for delivery drivers.
SATR can prepare and file your return for a fixed fee from £199 + VAT. Our qualified UK accountants file online and can check that your mileage and expenses are claimed correctly.
This is general information, not personal tax advice.
Working across several platforms
Many riders sign up with more than one app. For tax, all of your self-employed delivery income is normally treated as one trade, so you add the earnings from every platform together and deduct your costs once. Do not claim the same mileage twice if the same journey could be linked to two apps. Keep statements from each platform and reconcile the totals with the money that actually reached your bank account.
If you stop delivering part-way through the year, the same rules apply for the period you traded. Keep your records and still file the return, even if your income was small, if you passed the £1,000 trading allowance. If you are unsure whether you need to file, read our guide on who needs to register for Self Assessment.
It is also worth thinking about your own protection. Self-employed riders do not usually get sick pay or holiday pay from the platform, so a modest cash buffer alongside your tax pot can help you avoid dipping into money you owe to HMRC.
Frequently asked questions
What if I only deliver part-time?
You still need to register if gross income is over £1,000 in the tax year.
Can I claim my e-bike?
Yes. You can claim the cost or use mileage rates for cycles, depending on the method you choose.
Do I need a separate bank account for delivery work?
You do not have to, but it makes record-keeping much easier and helps you see the tax you need to set aside.
Can I claim the cost of my phone?
You can claim the business share of your phone costs. If you also use it personally, work out a fair business proportion.
What if I deliver and also have a job?
Your employment is taxed through PAYE, and your delivery profit is reported on Self Assessment. The profit is added to your other income when working out the rate.
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The bottom line
Delivery riders and drivers are usually self-employed, so you need to register with HMRC, keep a mileage log and report all platform earnings through Self Assessment. Claim mileage or actual vehicle costs (not both), set money aside for the 31 January bill, and do not ignore payments on account if your bill tops £1,000.
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