Delivery Driver Self Assessment: Your First Year Guide

Delivering for Uber Eats, Deliveroo, Just Eat or a courier app makes you self-employed for tax purposes in most cases. That means no tax is taken from your payments, and you are responsible for reporting your income and paying the right amount. If it is your first year, this guide takes you step by step through registering, keeping records, claiming costs and filing your first return.

Key takeaways

• Delivery apps normally pay you gross. You report income and pay tax yourself.
• Register with HMRC for Self Assessment by 5 October after the tax year you started in.
• Keep every app statement, fuel receipt and insurance document from day one.
• Claim real costs, or use simplified mileage if it suits your situation, but not both for the same vehicle.
• Set money aside from each payment so the tax bill does not surprise you.

What does Self Assessment mean for a delivery driver?

Self Assessment is how HMRC collects tax from people whose income is not taxed at source. As a sole trader driver, you report your trading income, deduct your allowable costs, and pay Income Tax and Class 4 National Insurance on the profit. Class 2 treatment has changed in recent years, so check the current position on GOV.UK. Our driver tax return guide goes further into the return itself.

Step 1: register with HMRC

You must tell HMRC you are self-employed. The deadline is 5 October after the end of the tax year in which you started. Registering produces a Unique Taxpayer Reference, which arrives by post, so do it early. We cover this in detail in our registration deadline guide. The official steps are on GOV.UK.

Step 2: keep the right records

Good records are the difference between a calm return and a stressful one. Keep:

• Weekly or monthly earnings statements from every app you use.
• Receipts or bank entries for fuel, servicing, insurance and equipment.
• A mileage log if you plan to use simplified mileage.
• Records of any tips, bonuses or incentives paid to you.

A separate bank account for deliveries makes this far easier. Our bookkeeping service can take over the routine if you prefer.

Step 3: understand your allowable costs

You pay tax on profit, not on everything the apps pay you. Costs must be wholly and exclusively for the business. See our sole trader expenses guide for the full picture.

For the current simplified mileage rates, see GOV.UK's simplified expenses page.

Step 4: set money aside

Because apps pay gross, there is no tax pot unless you build one. A simple habit is to move a fixed share of every payment into a separate savings account. Ask an accountant what share suits your income level, because it depends on your profit. Also remember that your first return may trigger payments on account, which can make the second bill feel larger.

Worked example (illustrative)

"Karim", an illustrative example, starts delivering in the autumn. He keeps his app statements, uses a separate bank account, and logs his costs monthly. At the end of the tax year he adds up total app income, subtracts allowable costs, and reports the profit. Because he registered before the October deadline and kept his records, the return takes him a short time. If instead Karim had thrown away receipts and left registration until January, he would have risked a late-registration problem and missed deductions. The first year is mostly about habits.

Common mistakes

• Assuming the app handled the tax. It did not. You are responsible.
• Registering late. Miss the 5 October registration deadline and penalties can follow.
• Claiming both mileage and actual costs. Choose one method per vehicle.
• Mixing personal and business money. It makes records messy.
• Ignoring Making Tax Digital. Depending on your income, you may have to keep digital records and send quarterly updates. See our MTD eligibility guide.

We help new delivery drivers register, keep records and file their first return. See our driver accounting service or contact us.