Self-Employment Guides UK — Tax, Business Setup, and Running Your Own BusinessGig Economy Tax Guide UK — Tax for Deliveroo, Uber, Etsy, and More
How to handle tax if you work in the gig economy — reporting income from food delivery, ride-hailing, freelancing, and selling on platforms like Etsy and eBay.
If you earn money through platforms like Deliveroo, Uber, Etsy, eBay, Airbnb, or TaskRabbit, you’re likely self-employed — and that means you need to handle your own tax. Here’s how.
Who Does This Guide Cover?
| Platform/activity | Typically self-employed? | Tax treatment |
|---|
| Deliveroo rider | Yes | Self Assessment |
| Uber driver | Yes (for tax purposes) | Self Assessment |
| Just Eat courier | Depends on contract | Check if PAYE or self-employed |
| Etsy seller | Yes | Self Assessment |
| eBay seller (trading) | Yes | Self Assessment |
| eBay seller (occasional personal items) | Usually no | Not trading — see below |
| Airbnb host | Yes | Self Assessment (or Rent a Room scheme) |
| Vinted seller (personal items) | Usually no | Not trading |
| TaskRabbit | Yes | Self Assessment |
| Fiverr / Upwork | Yes | Self Assessment |
| Amazon FBA seller | Yes | Self Assessment |
| Twitch/YouTube | Yes (if earning) | Self Assessment |
Do You Need to File a Tax Return?
| Your situation | Action needed |
|---|
| Gig income under £1,000/year | No action needed — covered by trading allowance |
| Gig income over £1,000/year | Register for Self Assessment and file a tax return |
| Selling personal items (not trading) | No tax — but see trading vs hobby section below |
| Gig work alongside a PAYE job | Still need to register for Self Assessment for the self-employed income |
Trading vs Hobby vs Selling Personal Items
| Activity | Tax treatment |
|---|
| Trading — buying items to sell at a profit, or regularly selling handmade goods | Self-employed income — taxable |
| Hobby — occasional sales, not profit-motivated | May still be taxable if regular and profitable |
| Selling personal items — clearing out your wardrobe on eBay/Vinted | Not taxable (unless items sold for more than £6,000 each — which would be CGT) |
How HMRC Decides If You’re Trading
| Factor | Trading | Not trading |
|---|
| Frequency | Regular, repeated sales | Occasional, one-off |
| Profit motive | Buying to resell at profit | Selling unwanted personal items |
| Volume | High number of transactions | A few items |
| Organised? | Stock management, business account, descriptions | Casual |
| Period | Ongoing | Short-term clear-out |
How to Register and File
| Step | Timing | Action |
|---|
| 1 | As soon as you start | Register for Self Assessment at gov.uk |
| 2 | Within 3 months of starting | Or by 5 October following the first tax year |
| 3 | Keep records throughout the year | Income, expenses, mileage, receipts |
| 4 | After 5 April (end of tax year) | Complete your Self Assessment return |
| 5 | By 31 January | File online return AND pay any tax owed |
What Tax Do You Pay?
| Tax | Rate | Threshold |
|---|
| Income Tax (basic rate) | 20% | £12,571–£50,270 |
| Income Tax (higher rate) | 40% | £50,271–£125,140 |
| Income Tax (additional rate) | 45% | Over £125,140 |
| National Insurance Class 2 | £3.45/week | Profits over £12,570 (voluntary below) |
| National Insurance Class 4 | 6% | Profits £12,570–£50,270 |
| National Insurance Class 4 (higher) | 2% | Profits over £50,270 |
Important: Your personal allowance (£12,570) applies to ALL your income. If you also have a PAYE job, your employment income uses up the personal allowance first.
Example: Deliveroo Rider
| Item | Amount |
|---|
| Annual Deliveroo income | £18,000 |
| Allowable expenses | £4,200 |
| Taxable profit | £13,800 |
| Personal allowance | –£12,570 |
| Taxable income | £1,230 |
| Income tax (20%) | £246 |
| Class 2 NI | £179 |
| Class 4 NI (6% on £13,800 – £12,570) | £74 |
| Total tax and NI | £499 |
Example: Etsy Seller with PAYE Job
| Item | Amount |
|---|
| PAYE salary | £28,000 (uses up personal allowance) |
| Etsy income | £8,000 |
| Etsy expenses | £2,500 |
| Etsy profit | £5,500 |
| Income tax on Etsy profit (20% — already above personal allowance) | £1,100 |
| Class 2 NI | £179 |
| Class 4 NI (6% on £5,500) | not due (already paying Class 1 via PAYE — but Class 4 may apply if total exceeds threshold) |
Deliveroo / Uber Eats / Just Eat Riders
| Expense | Deductible? |
|---|
| Bicycle maintenance and repairs | Yes |
| Motorcycle/scooter fuel | Yes |
| Vehicle insurance (business proportion) | Yes |
| Phone (proportion used for work) | Yes |
| Phone mount/holder | Yes |
| Thermal delivery bag | Yes |
| Waterproof clothing | Yes (if required for work and not suitable for everyday wear) |
| Cycling helmet | Yes |
| High-vis vest | Yes |
| Mileage (if using own car/motorcycle) | Yes — use simplified expenses rates |
Uber / Bolt Drivers
| Expense | Deductible? |
|---|
| Fuel | Yes (or use mileage rate instead) |
| Vehicle insurance (business proportion) | Yes |
| PHV licence and vehicle licence | Yes |
| DBS check | Yes |
| Vehicle maintenance and MOT | Yes |
| Car wash (business proportion) | Yes |
| Phone and data | Yes (proportion used for work) |
| Dash cam | Yes |
| Car finance (business proportion) | Yes |
| Uber commission/service fee | Yes — if you report gross income |
Etsy / eBay / Amazon Sellers
| Expense | Deductible? |
|---|
| Platform fees and commissions | Yes |
| PayPal/Stripe transaction fees | Yes |
| Raw materials and supplies | Yes |
| Packaging and shipping | Yes |
| Postage | Yes |
| Equipment (sewing machine, tools) | Yes (capital allowances if over £1,000) |
| Stock purchased for resale | Yes |
| Website/domain costs | Yes |
| Photography equipment/props | Yes |
| Home office costs (simplified expenses) | Yes |
| Advertising (Etsy Ads, Facebook Ads) | Yes |
Simplified Expenses
| Expense type | Simplified rate |
|---|
| Vehicle mileage (car) | 45p per mile (first 10,000), 25p per mile (after 10,000) |
| Vehicle mileage (motorcycle) | 24p per mile |
| Vehicle mileage (bicycle) | 20p per mile |
| Working from home | £10/month (25–50 hours), £18/month (51–100 hours), £26/month (101+ hours) |
| Detail | Information |
|---|
| What is DAC7? | Platforms must report your income details to HMRC |
| When it applies | If you make 30+ sales OR earn €2,000+ in a calendar year on the platform |
| Which platforms? | eBay, Etsy, Airbnb, Vinted, Deliveroo, Uber, Fiverr, and others |
| What’s reported? | Your income, number of transactions, identity details |
| Does it create new tax? | No — but HMRC can cross-check your tax return against platform data |
| What to do | Declare all trading income over £1,000 on your Self Assessment, as you should already |
Payments on Account
| Detail | Information |
|---|
| What is it? | If your tax bill exceeds £1,000, HMRC asks for advance payments toward NEXT year’s tax |
| First payment | 31 January (50% of previous year’s bill) |
| Second payment | 31 July (another 50%) |
| Example | If you owe £2,000 for 2025/26, you pay £2,000 PLUS £1,000 on account for 2026/27 in January = £3,000 total |
| Cash flow impact | Your first Self Assessment year costs significantly more — plan for it |
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