If you earn money through platforms like Deliveroo, Uber, Depop, Etsy, Fiverr, or TaskRabbit, you are self-employed in the eyes of HMRC — even if you only do it on the side. This guide explains what you need to do to stay compliant and how much tax to expect.
The £1,000 Trading Allowance
If your total self-employed income from all gig platforms is £1,000 or less per tax year, you do not need to register for Self-Assessment or pay any tax on it. This is the Trading Allowance and it applies automatically.
Above £1,000, you must register as self-employed with HMRC and file a Self-Assessment tax return.
Are you employed or self-employed?
Most gig platforms treat you as self-employed (a "partner" or "seller"). This means no PAYE, no employer NI, and no holiday pay. You are responsible for your own tax. However, some platforms may classify you differently — check your agreement.
What expenses can you claim?
You can deduct allowable business expenses from your income before tax is calculated. Common ones for gig workers include:
- Bicycle maintenance and repairs (delivery riders)
- Vehicle fuel, insurance, and maintenance (if using a car)
- Phone bill (business portion)
- Delivery bags and equipment
- Platform fees and commissions
- Packaging and postage (Depop/Etsy sellers)
- Home office costs (if working from home)
You can use either actual expenses or HMRC's simplified mileage rates (45p/mile for the first 10,000 miles by car, 20p/mile for bicycles).
How much tax will you pay?
After deducting expenses, your profit is added to any other income (e.g. a day job salary) and taxed at your marginal rate. If this is your only income and your profit is below £12,570, you won't pay income tax — but you may still owe Class 2 and Class 4 National Insurance once profits exceed £6,725 (Class 2) or £12,570 (Class 4).
HMRC reporting by platforms
From January 2025, digital platforms are required to report your earnings directly to HMRC. This means HMRC already knows what you earned — filing accurately is now more important than ever.
Estimate your tax bill
Use the income tax calculator to estimate your total tax liability across all income sources. If you have a day job, enter your combined salary + gig profit to see the marginal impact. For a deeper dive, read our self-employed tax guide.