You are self-employed for tax
If you earn money through a UK gig platform, you are self-employed for tax purposes. The platform pays you in full and leaves tax to you.
Under UK digital-platform reporting rules, HMRC now receives earnings data directly from the apps. If you took home over £1,000 gross in the tax year across any combination of platforms, you need to be on HMRC's radar.
The £1,000 trading allowance
- Gross income under £1,000 in a tax year: no need to declare. The trading allowance covers it.
- Over £1,000: you must register for Self Assessment and declare. You then either deduct the £1,000 allowance from gross income (simplest), or claim actual allowable expenses, whichever gives the lower taxable figure. You cannot do both.
What counts as an allowable expense
- Mileage for every work trip (45p per mile for the first 10,000 miles, then 25p).
- Phone bill, work portion only.
- Bike maintenance, delivery bags, waterproofs if you ride.
- Platform fees or commission deducted after the fact, if any.
- Public liability insurance if you took one out.
Mileage versus actual costs
Same rule as private-hire drivers. The mileage method is simpler and works well for most gig riders. Actual costs can win if your vehicle is heavily used for work and you have clean records, but every receipt has to be there.
Side income on top of a PAYE job
You still declare gig earnings even if you have a day job that pays you through PAYE. Your Self Assessment combines the PAYE income (already taxed through payroll) with your gig profit, and HMRC calculates the extra tax owed. The PAYE job does not shelter gig earnings.
National Insurance
- Class 2 kicks in at £6,725 of profit, a flat £3.45 per week.
- Class 4 kicks in at £12,570 of profit, 6% up to £50,270 then 2% above.
Below £6,725 profit, no NI applies, but income tax still kicks in above the Personal Allowance of £12,570 (combined with any other income).
Quick test
Did one or more apps pay you more than £1,000 gross in the tax year? If yes, you are filing.