The gig economy has exploded in the UK, with millions of people earning income through platforms like Deliveroo, Amazon Flex, TaskRabbit, Fiverr, and others. If you earn money through any of these platforms, you are almost certainly self-employed in the eyes of HMRC, and you need to understand your tax obligations. Getting it wrong can result in penalties, interest charges, and unnecessary stress.
The £1,000 trading income allowance: If your total gross self-employed income from all platforms is £1,000 or less per tax year, you do not need to register with HMRC or file a Self Assessment return. If it exceeds £1,000, you must register and file — even if your expenses mean you made no profit.
Who Needs to File a Tax Return?
You need to file a Self Assessment tax return if your total self-employed income from gig platforms exceeds £1,000 in a tax year (6 April to 5 April). This includes:
- Deliveroo riders and drivers
- Amazon Flex delivery drivers
- TaskRabbit taskers
- Uber Eats couriers
- Fiverr and Upwork freelancers
- Etsy and eBay sellers (if trading rather than selling personal items)
- Airbnb hosts (separate rules apply with a £1,000 property allowance)
Even if the platform does not send you a tax form or deduct any tax, you are responsible for reporting the income yourself.
HMRC Knows What You Earned
Since January 2024, digital platforms operating in the UK must report seller and worker earnings to HMRC under DAC7 reporting rules. This means HMRC already has data on what you have earned through most major platforms. If your tax return does not match what the platform has reported, HMRC will open an enquiry.
This is not something to worry about if you are reporting honestly. It is, however, a very good reason not to under-declare your income.
Platform-Specific Tips
Deliveroo
Deliveroo provides an annual invoice summary through the rider portal. Your income is the total amount Deliveroo pays you, including tips passed through the app. Common expenses include bicycle or scooter running costs, insulated delivery bags, waterproof clothing, phone mounts, and mobile data.
Amazon Flex
Amazon Flex drivers receive a summary of earnings in the app. Your taxable income is the total block payments you received. Since you use your own vehicle, you can claim either mileage (45p per mile for the first 10,000, then 25p) or actual vehicle costs. Do not forget to track your mileage from the moment you leave home for a block to when you return — not just the delivery miles.
TaskRabbit
TaskRabbit covers a wide range of services from furniture assembly to cleaning. Your expenses will depend on the tasks you perform — tools, cleaning supplies, transport costs, and protective equipment are all potentially claimable. TaskRabbit’s service fee is also a deductible expense.
Multiple Platforms
If you work across several platforms, all income is combined for tax purposes. You file a single Self Assessment return covering all your self-employed earnings. Keep separate records for each platform — this makes the return much simpler and provides clear evidence if HMRC asks questions.
Expenses Gig Workers Can Claim
The expenses you can claim depend on the type of work you do, but common deductions for gig economy workers include:
- Vehicle costs: Mileage allowance or actual running costs (fuel, insurance, repairs)
- Bicycle costs: Purchase price (capital allowances), repairs, accessories
- Phone and data: Business proportion of your mobile contract
- Equipment: Delivery bags, tools, safety equipment, phone mounts
- Clothing: Protective or specialist clothing required for the work (not everyday clothes)
- Platform fees: Commission and service charges deducted by the platform
- Accountancy fees: Cost of having your tax return prepared
- Insurance: Business-specific insurance policies
How Tax Is Calculated
Your tax is calculated on your profit — your total income minus your allowable expenses. For the 2025/26 tax year:
- Personal Allowance: The first £12,570 of total income is tax-free
- Basic rate (20%): On income from £12,571 to £50,270
- Higher rate (40%): On income from £50,271 to £125,140
- Additional rate (45%): On income above £125,140
You will also pay Class 2 National Insurance (£3.45 per week, collected through Self Assessment if profits exceed £12,570) and Class 4 National Insurance (6% on profits between £12,570 and £50,270, and 2% above that).
Top Tips for Gig Economy Workers
- Register early — do not wait until January to tell HMRC you are self-employed
- Track everything — use an app like FreeAgent, QuickBooks, or even a simple spreadsheet
- Save for tax — put 25-30% of your profit aside each month in a separate account
- Claim the trading allowance — if your income is near the £1,000 mark, this can eliminate your obligation entirely
- Get professional help — an accountant’s fee typically pays for itself through better expense claims and no missed deadlines
Let Us Handle Your Gig Economy Tax Return
At HS Global Accountancy, we work with gig economy workers across every major platform. We understand the unique challenges of tracking income from multiple sources and ensuring every deduction is claimed. Visit our gig economy tax services page or get a quote today.
Working in the Gig Economy? Your Tax Return Doesn’t Have to Be Complicated
Fixed-fee tax returns for Deliveroo, Amazon Flex, TaskRabbit, and more.
