Gig Economy Workers: How to Handle UK Taxes in 2025–26

Do I really need to file a tax return?

Yes — if your earnings from any gig platform exceed £1,000 in a tax year, you must register for Self Assessment and file a return. This applies to:

Platforms now report your earnings directly to HMRC under the DAC7 reporting rules (in force since January 2024). HMRC already knows what you earned — you need to declare it correctly.

What income do I declare?

Declare your gross earnings from the platform (before any platform fees or commissions), then deduct your allowable expenses to arrive at your taxable profit.

What expenses can I deduct as a gig worker?

🚗 Uber / Bolt / taxi drivers

• Mileage: 45p per mile for the first 10,000 miles, 25p after. Only business miles count (not commuting to start your shift).
• Vehicle running costs: If you claim actual costs instead of mileage — fuel, insurance, servicing, MOT, tyres — proportional to business use.
• Platform fees & commissions: Uber's service fee (typically 25%) is fully deductible as a business expense.
• Phone & data: Business proportion of your mobile bill.
• Dash cam, car accessories: Items used wholly for the business.
• Parking & tolls: Fully deductible when incurred for business.

🛵 Deliveroo / Just Eat / Stuart couriers

• Bike / scooter costs: Maintenance, tyres, insurance — proportional to business use.
• Mileage: 45p per mile (cars), 24p per mile (motorbikes), 20p per mile (bicycles).
• Thermal bags & equipment: Any equipment required to do the job.
• Protective gear: Helmets, hi-vis jackets, gloves used exclusively for deliveries.
• Phone mount, power bank: Accessories used for navigation and the app.

💻 Freelancers (Upwork, Fiverr, PeoplePerHour)

• Platform fees: Upwork takes 10–20% of earnings — this is deductible.
• Home office: £6/week flat rate, or proportional actual costs.
• Software & subscriptions: Adobe, Figma, Slack, project management tools used for business.
• Hardware: Laptops, monitors, microphones, cameras — in the year of purchase via Annual Investment Allowance.
• Training & courses: Directly related to your current freelance skills.

Example: Uber driver tax calculation 2025–26

This example is illustrative. Use our tax calculator for your own estimate.

The £1,000 Trading Allowance

If your total gig income is under £1,000 in a tax year, you qualify for the Trading Allowance. You don't need to register for Self Assessment, and no tax is due on this income. You cannot also claim expenses — it's one or the other.

If your income is above £1,000, you must register and declare. However, you can still choose to use the £1,000 Trading Allowance instead of claiming actual expenses — useful if your expenses are minimal.

I work gigs AND have a PAYE job — what do I do?

Very common situation. You must still file a Self Assessment return if your gig income is over £1,000. On your return you will report:

• Employment income (from your P60) on SA102
• Self-employment income on SA103S

HMRC will calculate your total income tax liability and subtract any tax already paid via PAYE. You only pay the difference.

Record-keeping tips for gig workers

• Download your annual earnings statement from each platform at the end of each tax year. Most platforms make this available in the app.
• Keep a mileage log — date, start/end location, miles, business purpose. A simple spreadsheet or app works.
• Save receipts digitally — photograph them with an app like Dext or keep them in a dedicated Google Drive folder.
• Keep records for at least 5 years after the filing deadline — HMRC can investigate up to 4 years back (longer if fraud is suspected).