Uber Eats Driver Tax Guide

Are Food Delivery Drivers Self-Employed?

Most delivery drivers working through services such as Uber Eats, Deliveroo and Just Eat operate as self-employed sole traders.

This is often the case if you:

• Have control over when and where you work
• Use your own bicycle, motorcycle, scooter, car or van
• Pay for your own vehicle and delivery equipment
• Work for more than one delivery service
• Are responsible for reporting and paying your own tax

If you are self-employed, you may be responsible for:

• Registering with HMRC when required
• Recording all income from delivery work
• Keeping records of allowable business expenses
• Completing a Self Assessment tax return
• Paying any Income Tax and National Insurance due

Do Food Delivery Drivers Need to Register with HMRC?

You may need to register as self-employed if you earn income from food delivery work.

Once registered, HMRC normally issues a Unique Taxpayer Reference, commonly known as a UTR. You will use this reference when managing your Self Assessment tax affairs.

Registering by the relevant deadline can help you avoid missed filing requirements, unnecessary stress and potential penalties.

Even when you only make deliveries part-time or occasionally, you should keep complete records of your earnings. Part-time income is not automatically exempt from tax reporting requirements.

Our Self Assessment support service explains how Go Tax Refunds can help self-employed individuals manage their income, expenses, records and HMRC filing responsibilities.

What Income Should Delivery Drivers Declare?

Self-employed delivery drivers should keep records of all income received from delivery work.

This could include payments from:

• Uber Eats
• Deliveroo
• Just Eat
• Other food or parcel delivery services
• Bonuses, incentives and other delivery-related payments

When you work through more than one platform, the income from all platforms should be included when calculating your total business income.

You should retain:

• Weekly and monthly earnings statements
• Delivery app statements
• Bank statements
• Invoices and receipts
• Records of bonuses and incentive payments

Maintaining complete records throughout the year will make it much easier to prepare an accurate Self Assessment tax return.

What Expenses Can Food Delivery Drivers Claim?

Self-employed delivery drivers may be able to deduct allowable business expenses from their income when calculating taxable profit.

Expenses generally need to be incurred wholly and exclusively for the purposes of your business. If an expense has both business and personal use, only the business proportion should normally be claimed.

Vehicle and Travel Costs

If you use your own car, van or motorcycle for deliveries, you may be able to claim simplified mileage expenses or an appropriate proportion of your actual vehicle costs.

Depending on the method used, relevant costs could include:

• Business mileage
• Fuel
• Servicing and repairs
• Vehicle insurance
• Vehicle tax
• Breakdown cover
• Allowable business parking charges

Bicycle, Scooter and Motorcycle Expenses

Drivers using a bicycle, electric bicycle, scooter or motorcycle may be able to claim the business proportion of costs such as:

• Repairs and maintenance
• Tyres and inner tubes
• Servicing
• Lights and locks
• Business-use insurance
• Equipment purchased for delivery work

Delivery Equipment

Equipment purchased specifically for delivery work may also qualify as a business expense.

This could include:

• Insulated delivery bags
• Phone holders and stands
• Chargers and power banks
• Bicycle lights
• Helmets and qualifying safety equipment
• Reflective or high-visibility equipment
• Protective waterproof clothing required for the work

Ordinary everyday clothing is generally not an allowable business expense simply because it is worn while making deliveries.

Mobile Phone Costs

Delivery drivers commonly use a mobile phone to accept deliveries, navigate routes and communicate with customers.

You may be able to claim the business proportion of:

• Mobile phone bills
• Data charges
• Paid apps used for delivery work
• Phone accessories required for the business

Use a reasonable and consistent method to calculate the proportion that relates to business use.

Professional and Administrative Costs

Other potential business expenses may include:

• Accountancy fees
• Bookkeeping software
• Allowable business banking charges
• Professional subscriptions
• Stationery and printing
• Other qualifying administrative expenses

Keep receipts, invoices and supporting records for every expense you intend to include in your tax return.

Can I Claim Mileage as a Delivery Driver?

Mileage can be one of the largest expenses for drivers using a car, van or motorcycle for deliveries.

A mileage log should normally include:

• The date of the journey
• The business reason for the journey
• The starting point
• The destination
• The number of business miles travelled

Personal journeys should not be included in a business mileage claim.

You can use our free mileage calculator to estimate the potential value of qualifying business mileage.

The tax treatment of journeys between home and another location can depend on the nature of your business and whether the destination is a temporary or permanent workplace. Seek professional advice if you are unsure whether a journey qualifies.

What if I Work for More Than One Delivery Platform?

Many drivers use multiple delivery services to increase their earning opportunities.

You could work through Uber Eats, Deliveroo, Just Eat and other platforms during the same tax year. When calculating your self-employed profit, include all income connected with your delivery business.

Your records could therefore include:

• Earnings from Uber Eats
• Earnings from Deliveroo
• Earnings from Just Eat
• Earnings from other delivery platforms
• Bonuses and incentive payments
• Allowable business expenses

What if I Also Have a Full-Time Job?

It is common for food delivery drivers to make deliveries during evenings or weekends while also working in a PAYE job.

Having tax deducted from your employment salary does not necessarily mean that tax due on your delivery income has also been collected.

You may need to report your delivery income separately through Self Assessment . Your PAYE income and self-employed profit will then be considered together when HMRC calculates your overall tax position.

This is one of the most common tax situations encountered by part-time delivery drivers.

What Records Should Delivery Drivers Keep?

Accurate records are essential when preparing a Self Assessment tax return and supporting any business expenses claimed.

You should consider keeping records of:

• Delivery platform earnings
• Bank statements
• Business expenses
• Business mileage
• Fuel purchases
• Vehicle servicing and repairs
• Insurance costs
• Mobile phone bills
• Delivery equipment purchases
• Previous tax returns
• Relevant HMRC correspondence

Digital copies can make records easier to organise, protect and access when your tax return is due.

How Is a Delivery Driver’s Tax Calculated?

A self-employed delivery driver is generally taxed on taxable profit, rather than total delivery income.

Your final tax liability may also depend on:

• Income from PAYE employment
• Income from other self-employed activities
• Your available Personal Allowance
• The applicable Income Tax rates
• National Insurance contributions
• Student loan repayments
• Pension contributions
• Other income, allowances and tax reliefs

Every driver’s circumstances are different. Two drivers earning the same delivery income could therefore have different amounts of tax to pay.

When Is a Self Assessment Tax Return Due?

Self Assessment registration, filing and payment deadlines depend on the relevant tax year and the method used to submit the return.

Filing late or missing a payment deadline can result in penalties, interest or additional charges. Check the deadlines that apply to your circumstances and prepare your return early.

Preparing in advance gives you more time to:

• Download your delivery platform statements
• Organise receipts and invoices
• Complete your mileage records
• Identify and correct missing information
• Prepare for any tax payment due

You can also review our frequently asked tax questions or contact our team if you are unsure about your filing responsibilities.

Making Tax Digital for Self-Employed Drivers

HMRC is introducing Making Tax Digital for Income Tax. Depending on your qualifying income and the applicable start date, you may need to use compatible software to maintain digital records and send updates to HMRC.

The requirements involve more regular digital record keeping and reporting rather than relying only on a single annual tax return process.

Read our complete Making Tax Digital guide for a detailed explanation of the new rules, or visit our Making Tax Digital service page to learn how Go Tax Refunds can help.

You can begin preparing by:

• Keeping digital records of income and expenses
• Separating business and personal spending where practical
• Using suitable bookkeeping software
• Recording expenses throughout the year
• Reviewing when Making Tax Digital will apply to you

Keeping your records organised now can make the transition to digital reporting more manageable.

Common Tax Mistakes Made by Delivery Drivers

Common mistakes include:

• Failing to report income from every delivery platform
• Assuming the delivery platform has deducted all tax due
• Not registering with HMRC when required
• Claiming personal expenses as business expenses
• Not retaining receipts or mileage records
• Claiming the wrong proportion of mixed-use expenses
• Using inconsistent vehicle-expense methods
• Waiting until the filing deadline to organise records
• Failing to report delivery income alongside PAYE employment
• Missing filing or payment deadlines

Maintaining accurate records and preparing your return in advance can help you avoid these problems.