Starting Self-Employed Delivery Work in the UK

Most food delivery riders and couriers in the UK work on a self-employed basis. This gives you flexibility, but it also means you take on responsibilities that an employer would normally handle, especially tax.

This guide explains the basics in simple language. It is general information only. JZ Consultant Group is not acting as your accountant or tax adviser here. Please confirm the rules on GOV.UK and speak to a qualified accountant for advice about your own situation.

What does "self-employed" mean for delivery riders?

When you work through a delivery app as a self-employed person, you are generally running your own small business. In simple terms:

• You are not paid a salary. You earn money for the work you complete.
• The platform does not usually take tax off your earnings.
• You pay for your own vehicle, fuel, phone and equipment.
• You are responsible for reporting your income to HMRC.
• You do not usually get holiday pay or sick pay from the platform.

The exact relationship is set out in each platform's terms. Read them carefully. Employment status in the UK can be complex, and if you are unsure, seek professional advice.

GOV.UK has a helpful overview called Working for yourself (opens in a new tab).

Registering with HMRC

If you are self-employed, you generally need to register for Self Assessment with HMRC. This is how you tell HMRC about your income each year.

Some key points:

• The tax year in the UK runs from 6 April to 5 April the following year.
• You typically need to register by 5 October after the end of the tax year in which you started working for yourself. For example, if you started in June, you would usually need to register by 5 October of the following year.
• Once registered, you will get a Unique Taxpayer Reference (UTR).
• You then complete a Self Assessment tax return each year.

You can register through GOV.UK. Always use the official GOV.UK website, and be careful of websites that charge you just to submit a free form.

The £1,000 trading allowance

HMRC offers a trading allowance of £1,000 per tax year. In simple terms, if your total income from self-employment is £1,000 or less in a tax year, you may not need to tell HMRC about it.

If your income is higher, you may be able to deduct the allowance instead of your actual expenses. However, you usually cannot claim both the trading allowance and your actual expenses for the same income. For many delivery riders with vehicle and fuel costs, claiming actual expenses may work out differently. An accountant can help you understand which option suits you.

Rules and amounts can change, so check the current position on GOV.UK.

Tax and National Insurance

As a self-employed person, you may need to pay:

• Income Tax on your profits above your personal allowance
• National Insurance contributions where they are due

Your profit is generally your income minus allowable business expenses. Many riders find it useful to set aside a part of every payment, so that they are ready when the tax bill arrives. The right amount depends on your circumstances, so ask an accountant if you are unsure.

Self Assessment returns filed online are usually due by 31 January after the end of the tax year, and this is also usually when any tax owed is due for payment. Late returns and late payments can lead to penalties.

Making Tax Digital for Income Tax

HMRC is introducing Making Tax Digital (MTD) for Income Tax. From April 2026 it applies to some sole traders and landlords, depending on their qualifying income. Over time, the income threshold is planned to come down, so more people may be included.

If you are included, you will generally need to keep digital records and send updates to HMRC using compatible software. Check GOV.UK to see whether and when MTD applies to you, and speak to an accountant if you are not sure.

Keeping good records

Good records make your tax return much easier. They also help you understand whether your delivery work is really profitable after costs.

You generally need to keep records of:

• All income from each platform, including tips and bonuses
• Business expenses, such as fuel, repairs, phone costs and equipment
• Mileage, if you use a vehicle
• Receipts and bank statements

HMRC generally expects you to keep records for at least 5 years after the 31 January submission deadline of the relevant tax year. Our courier record keeping guide explains simple ways to do this.

Other things to consider

• Bank account: a separate account for your delivery income can make records clearer.
• Insurance: make sure your vehicle insurance covers food delivery if you use a motor vehicle.
• Universal Credit or other benefits: if you receive benefits, self-employed income may affect them. Check with the relevant office.
• Working on several apps: you can usually only file one Self Assessment return, which includes all your self-employed income.

How JZ Consultant Group can help

We can explain the general steps of getting set up as self-employed, help you understand what HMRC forms involve, and point you to the right official resources. For personal tax advice, we always recommend a qualified accountant.

Find out more about our additional consultancy services, or send us a request.

This article is general information only and is not tax or legal advice. Tax rules change, so always confirm on GOV.UK and speak to a qualified accountant about your own situation. JZ Consultant Group is not affiliated with any delivery platform.