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Updated for 2026/27
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Deliveroo Tax UK: The Rider's Complete Guide (2026/27)

Everything you need to know about HMRC tax rules for Deliveroo, Uber Eats and Just Eat. Learn about the 'Side Hustle Tax' and the 45p mileage trick.

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TaxWiz Editorial

Tax Content Writer • Modified 2026-04-16

Rider Expense Checker

How much of your delivery fee is actually yours to keep? Use our mileage tool to lower your tax bill.

Open Mileage Calculator

The Self-Employed Reality

When you sign up to ride for Deliveroo, Uber Eats, or Just Eat, you are essentially starting your own miniature logistics company. In the eyes of HMRC, you are a "Sole Trader."

The Short Answer

You are a business owner, not an employee.

This means you don't get 'Tax-Free' paychecks. You are paid the gross amount, and you must save a portion of every delivery fee to pay HMRC later in the year.

When Do I Pay Tax?

Many riders work part-time alongside a regular job or studies. This is where the £1,000 Trading Allowance becomes your best friend.

Do I need to register?

  • Under £1,000 (Gross Income): You keep 100% of your earnings. No need to tell HMRC.
  • Over £1,000 (Gross Income): You MUST register for Self Assessment, even if you made a loss after fuel.

The Mileage Secret

The biggest "expense" for most riders isn't their phone or their bag—it's the vehicle. HMRC allows you to use Simplified Mileage Rates instead of tracking every petrol receipt.

Real Example: Liam

Liam rides a motorcycle for Deliveroo. He earned £3,000 last year and covered 4,000 business miles.

Total Deliveroo Income£3,000
Mileage (4,000 mi @ 24p)-£960
Other Gear (Helmet/Bag)-£200
Taxable Profit£1,840

Takeaway: By using the 24p motorcycle rate, Liam wipes out nearly £1,000 of his taxable profit without ever showing a single fuel receipt.

Gear & Equipment

Aside from the miles you travel, there are several other items you can legally deduct to lower your tax bill.

Rider Tax Deductions
  • The Insulated Bag: 100% deductible if you bought it yourself.
  • Smartphone & Data: You can claim a percentage (e.g. 50%) based on how much you use it for deliveries vs personal use.
  • Protective Gear: Helmets, high-vis jackets, and safety gloves are all valid expenses.
  • HUK Insurance: Your "Hire & Reward" (H&R) insurance is a legitimate business cost.

Your Next Step

Don't let the paperwork slow you down. Follow these three steps to stay compliant.

Ready to File?

  1. Start a mileage log today. Track your start and end miles every shift.
  2. Use our Mileage Calculator to see your potential deductions.
  3. If you've crossed £1,000, follow our HMRC Registration Guide.
Go to Side Hustle Hub

Frequently Asked Questions

No. As a Deliveroo rider, you are a self-employed courier. Deliveroo is not your employer; they are your client. This means you are responsible for calculating and paying your own tax via Self Assessment.
Generally, no. You have to eat regardless of whether you are working or not. Only 'business subsistence' (meal costs while traveling to a temporary location away from your normal route) is usually deductible, and HMRC is very strict about this for local couriers.
You can claim 20p per business mile for your bicycle or E-bike. Alternatively, you can claim the actual cost of charging and repairs, but the 20p 'Simplified' rate is usually much easier.

Tax Disclaimer: TaxWiz provides general educational information and guides for UK residents. While we strive to maintain accuracy for the 2026/27 tax year, tax rules are subject to change. This content does not constitute regulated financial, legal, or tax advice. For complex situations, we strongly recommend consulting a qualified UK accountant. View our full Disclaimer.