Deliveroo Tax Guide 2026: How Much Tax Do Riders Pay?

Deliveroo Tax Calculator 2026

Enter your estimated annual Deliveroo earnings and business miles to see your tax and take-home pay for the 2025/26 tax year.

Are Deliveroo Riders Self-Employed?

Yes. Deliveroo classifies its riders as independent contractors, which means you are self-employed for tax purposes. HMRC treats your Deliveroo earnings as self-employment income, not PAYE employment income — so no tax is deducted before you are paid.

If you work for yourself, you're usually considered self-employed. You can work for yourself and be employed by an employer at the same time.

— GOV.UK: Working for yourself

This means you must:

• Register for Self Assessment with HMRC if your gross income exceeds £1,000
• Keep records of all income and allowable expenses
• Submit an annual Self Assessment tax return
• Pay any tax and National Insurance owed by 31 January

If you also have a PAYE job alongside Deliveroo, you still need to declare your Deliveroo income through Self Assessment.

How Much Tax Do Deliveroo Riders Pay?

Your income tax is calculated on your taxable profit — that is, your gross Deliveroo earnings minus allowable expenses. The table below shows estimated tax bills at common income levels for the 2025/26 tax year.

*Assumes £800 expenses (mileage + equipment). Figures are estimates for 2025/26. Personal Allowance £12,570 applied.

Income tax rates for 2025/26 in England and Wales:

• £0 – £12,570 — Personal Allowance (0% tax)
• £12,571 – £50,270 — Basic rate (20%)
• £50,271 – £125,140 — Higher rate (40%)
• Over £125,140 — Additional rate (45%)

Scottish riders pay different rates — use HMRC's Scottish Income Tax calculator for accurate figures.

How Much National Insurance Do Deliveroo Riders Pay?

From April 2024, Class 2 National Insurance was abolished. Deliveroo riders now only pay Class 4 NI:

For a rider earning £25,000 with £1,430 expenses, taxable profit is approximately £23,570. Class 4 NI = (£23,570 − £12,570) × 6% = £660.

What Expenses Can Deliveroo Riders Claim?

You can deduct allowable business expenses from your gross Deliveroo income before calculating your tax bill. Only costs that are wholly and exclusively for business count.

Equipment and Kit

• Bicycle purchase (or proportion used for work) or moped/scooter
• Cycle repairs and maintenance: tyres, brakes, chain
• Helmet, high-visibility vest, gloves, and cycling gear
• Insulated delivery bag or backpack (if purchased yourself)
• Bicycle lock and security equipment

Phone and Data

• Business proportion of mobile phone contract (e.g. 60% if used mostly for Deliveroo)
• Phone mount or handlebar holder used for navigation
• Mobile data costs attributable to Deliveroo app use

Insurance

• Third-party liability insurance for delivery work
• Cargo or equipment insurance if separately purchased

Other Allowable Costs

• Accountant or tax adviser fees for preparing your Self Assessment
• Bank charges on a dedicated business account
• Food and drink consumed during shifts (only if you are away from your base — strict HMRC rules apply)

Expenses must be wholly and exclusively for trade purposes. You cannot claim the cost of everyday clothing, personal food, or commuting from home to your first delivery.

— GOV.UK: Expenses if you're self-employed

Not sure what counts? See our full Gig Worker Expenses Checklist for a complete breakdown.

Mileage Allowance: Bicycle vs Moped vs Car

Instead of claiming actual fuel and running costs, most Deliveroo riders use HMRC's Approved Mileage Allowance Payments (AMAP). The rate depends on your vehicle:

Most Deliveroo riders use a bicycle. At 5,000 delivery miles per year, you can claim £1,000 in mileage allowance — reducing your tax bill by £200 if you are a basic rate taxpayer.

Keep a mileage log with the date, start and end point, purpose, and miles covered. HMRC can request this during an enquiry.

How Do Deliveroo Riders File Their Self Assessment?

Filing Self Assessment for the first time can feel daunting. Here is a step-by-step guide:

1. Register for Self Assessment — go to GOV.UK and register by 5 October following the end of the tax year. You will receive a UTR (Unique Taxpayer Reference) by post within 10 working days.
2. Gather your records — total Deliveroo income, all expense receipts, bank statements, and your mileage log for the whole tax year (6 April to 5 April).
3. Log in to HMRC Online Services — use your Government Gateway ID. If you do not have one, create an account at the same time as registering.
4. Complete the SA100 return — enter your self-employment income and expenses in the self-employment section (SA103S for income under £85,000).
5. Submit and pay by 31 January 2027 — for the 2025/26 tax year. Make a payment on account for the following year if HMRC requests one.

Missing the 31 January deadline triggers an automatic £100 penalty, even if you owe no tax. After 3 months, daily £10 penalties begin (up to £900 total).

Tax Tips to Reduce Your Deliveroo Tax Bill

Reducing your tax bill legally through careful record-keeping and allowable deductions is straightforward once you know the rules.

• Track every business mile — a mileage app such as MileIQ or a simple spreadsheet. 5,000 bicycle miles = £1,000 off your taxable profit.
• Use the trading allowance correctly — if your gross Deliveroo income is under £1,000, you owe no tax and no Self Assessment is needed.
• Keep all receipts — photograph them with your phone and store them digitally. HMRC requires you to keep records for 5 years after the 31 January deadline.
• Open a dedicated bank account — separating Deliveroo income from personal spending makes completing your Self Assessment much faster.
• Consider a pension contribution — contributions to a personal pension reduce your taxable income pound for pound.
• Pay on account on time — if HMRC requests payments on account (advance payments toward next year's bill), paying on time avoids interest charges.

Want a full breakdown of every expense you can claim? See our Gig Worker Expenses Checklist and our HMRC Self Assessment 2026 guide.

Frequently Asked Questions