Gig Economy & Tax

Are You Self-Employed?

Most gig workers are treated as self-employed for tax purposes, even though platforms manage the bookings. You’re likely self-employed if:^[1]

• You can choose when and where to work
• You can turn down work
• You provide your own equipment (vehicle, phone, tools)
• You’re not guaranteed a minimum number of hours

What You Need to Do

As a self-employed gig worker, you must:^[1]

1. Register for Self Assessment if income exceeds £1,000
2. Keep records of all earnings and expenses
3. File a tax return each year
4. Pay Income Tax and NI on your profits

Common Expenses for Gig Workers

Deductible expenses vary by gig type:^[2]

Delivery Drivers & Ride-Hailing

• Vehicle costs (fuel, insurance, servicing, MOT) or use HMRC’s mileage rates
• Phone costs (business proportion)
• Thermal bags and delivery equipment

Task-Based Workers

• Tools and equipment
• Travel costs to jobs
• Protective clothing
• Insurance

Simplified Mileage Rates

Instead of tracking actual vehicle costs, you can use HMRC’s flat mileage rates:^[3]

Platform Reporting

Digital platforms are now required to report your earnings to HMRC if you exceed certain thresholds. This means HMRC already knows how much you earned, so it’s important to file accurately.^[4]

Further Reading

• Side Hustles & Tax
• Simplified Expenses
• Registering as Self-Employed
• Digital Platform Reporting Rules