The short answer: if you drive or deliver through apps and your total income is more than the £1,000 trading allowance in a tax year, you need to tell HMRC, usually by registering for Self Assessment. You pay tax on your profit after allowable expenses, and app platforms now report what you earn to HMRC, so your return needs to match.
Are you self-employed?
Most people who drive for taxi and private hire apps or deliver food and parcels through apps are treated as self-employed for tax. That means you are responsible for keeping records, sending a tax return and paying your own Income Tax and National Insurance.
When you need to tell HMRC
- If your total trading income is more than £1,000 in a tax year (6 April to 5 April), you need to tell HMRC.
- If you need to send a tax return for the first time, register for Self Assessment by 5 October after the end of the tax year.
- The online tax return, and any tax due, must be in by 31 January. See deadlines and penalties.
Apps now report your income to HMRC
Since 1 January 2024, UK digital platforms have to collect your details and report your income from personal services such as driving a taxi or delivering food to HMRC each year, by the following January. For example, income from January to December 2024 was reported by 31 January 2025. The platform must give you a copy of what it reported. Whether or not a platform reports you, you still need to tell HMRC about income over the trading allowance.
Expenses you can claim
You pay tax on your profit, not your total earnings. Expenses you may be able to claim include:
- Vehicle costs: either actual costs (fuel, insurance, repairs, servicing) for the business share, or flat mileage rates
- Platform and service fees taken by the app
- Phone and data costs for the business share
- Licences, such as a private hire licence, and work equipment such as delivery bags
Instead of claiming actual expenses, you can choose to deduct the £1,000 trading allowance. Read more in our guide to allowable expenses.
Flat mileage rates (simplified expenses)
| Vehicle | Before 6 April 2026 | From 6 April 2026 |
|---|---|---|
| Cars and goods vehicles, first 10,000 business miles | 45p a mile | 55p a mile |
| Cars and goods vehicles, after 10,000 miles | 25p a mile | 25p a mile |
| Motorcycles | 24p a mile | 24p a mile |
If you use the flat rate, you cannot also claim the actual costs of buying and running the vehicle, such as insurance, repairs, servicing and fuel. Keep a log of your business miles either way.
Mileage allowance calculator
Work out a simplified expenses claim for your business miles.
Only business journeys count, not your commute to a regular workplace.
Estimate only. If you use flat mileage rates you cannot also claim fuel, insurance, repairs or servicing for that vehicle.
Making Tax Digital
If your income from self-employment and property, before expenses, is over £50,000, Making Tax Digital for Income Tax has applied since 6 April 2026. It extends to income over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028. Many full-time drivers will be affected. Check with our free MTD checker.
How we help
We register you with HMRC, set up simple records, claim the right expenses, check your figures against what the platforms report and file your tax return. Tax returns from £149. See our page for the self-employed.
Sources: gov.uk, Check if you need to tell HMRC about your income from online platforms; Selling goods or services on a digital platform; Simplified expenses: vehicles; Use Making Tax Digital for Income Tax. Checked 6 October 2026.
Common questions
Do I need to pay tax on delivery or taxi app income?
If your total trading income is more than the £1,000 trading allowance in a tax year, you need to tell HMRC and you pay tax on your profit after expenses.
Does the app tell HMRC what I earn?
Yes. Since 1 January 2024, UK platforms report sellers’ income to HMRC each year and must give you a copy of what they report.
What mileage rate can I claim?
Using simplified expenses, cars and goods vehicles can claim 55p a mile for the first 10,000 business miles from 6 April 2026 (45p before that), then 25p. Motorcycles are 24p a mile.
Can I claim fuel and the mileage rate?
No. If you use the flat mileage rate, you cannot also claim the actual running costs such as fuel, insurance and repairs.
General information only, not personal advice. Tax rules, rates and thresholds change, so check gov.uk or speak to us about your own situation.