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).