UK Gig Economy Tax News: Week of 9 June 2026
This week's key numbers for UK gig workers: mileage rate stays at 45p/mile, Class 4 NI remains 6%, and HMRC has confirmed Making Tax Digital for Income Tax Self Assessment (MTD ITSA) goes live for incomes over £50,000 from April 2026 — already in effect.
HMRC Approved Mileage Rate: 45p/Mile Confirmed for 2025-26
The HMRC approved mileage allowance for cars and vans remains at 45p per mile for the first 10,000 business miles in the 2025-26 tax year, dropping to 25p per mile beyond that threshold. For bicycle users — relevant for Deliveroo and Uber Eats cyclists — the rate is 20p per mile.
These rates have not changed since 2011, which means they cover a smaller proportion of actual motoring costs each year due to fuel price increases. HMRC has made no announcement of a review for the current tax year.
Current HMRC Mileage Rates 2025-26
"You can claim for the cost of using your own vehicle for business journeys using HMRC's approved mileage rates."
— GOV.UK: Expenses if you're self-employed
Class 4 NI Rate Reminder: 6% for 2025-26
Class 4 National Insurance for the self-employed is 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Class 2 NI was abolished from April 2024 — there is no longer a weekly flat-rate contribution.
For a Deliveroo driver with £25,000 net profit, Class 4 NI works out at approximately £746 for the full year — paid via Self Assessment by 31 January 2027.
Making Tax Digital ITSA: Now Live for Income Over £50,000
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) has been mandatory since April 2026 for self-employed workers and landlords with income over £50,000. This requires quarterly digital submissions to HMRC using compatible software, in addition to the annual Self Assessment return.
The threshold drops to £30,000 from April 2027. Gig workers currently earning below £50,000 do not need to act yet but should familiarise themselves with compatible software — HMRC maintains a list at gov.uk.
For full details see our guide: Making Tax Digital for Self-Employed 2026.
Upcoming Dates to Keep in Your Diary
- 31 July 2026 — Second payment on account due for 2025-26 Self Assessment
- 5 October 2026 — Deadline to register for Self Assessment if you started gig work in 2025-26
- 31 October 2026 — Paper Self Assessment return deadline
- 31 January 2027 — Online Self Assessment return and payment deadline