Uber Eats delivery drivers and tax

Boleyn19

Hi,
I want to check my understanding of the position is correct. My 21 year old son and his friend have minimum wage PAYE jobs but aren't getting enough shifts. So both have signed up with UE. I thought I'd check the tax situation as both are pretty naive when it comes to finances and thought either no tax or UE or HMRC would just ask for the tax at some point.

Both hope to earn more that £1k before end March. In that case they must register for self-assessment before 5 October. If they don't end up earning more than £1k they don't submit a return. The return must be submitted before end January 2027 even if they will be under the £12570 threshold for tax.

They can claim expenses for mileage @45p pm, the essential extra car insurance, the delivery bag and the DBS fee. If this comes to under £1k they claim the £1k trading allowance instead.

Anything incorrect or something I've missed?

MyRealNameToo

Are you sure of the legal status? Uber drivers are Workers in the UK but their help page says it's different for delivery drivers but doesnt go on to provide more information. 

Boleyn19

MyRealNameToo said:

Are you sure of the legal status? Uber drivers are Workers in the UK but their help page says it's different for delivery drivers but doesnt go on to provide more information. 

Yes, they aren't going to be Uber drivers as in taxis but Uber Eats couriers. Quote from their website.

"A worker is an employment classification that is unique under UK employment law. Workers are not employees but are entitled to the National Living Wage, holiday pay and pensions. Drivers remain self-employed for tax purposes and still have to complete an annual tax return".

I've got all my points in te OP from tax sites talking specifically about food delivery couriers.

MyRealNameToo

Boleyn19 said:

MyRealNameToo said:

Are you sure of the legal status? Uber drivers are Workers in the UK but their help page says it's different for delivery drivers but doesnt go on to provide more information. 

Yes, they aren't going to be Uber drivers as in taxis but Uber Eats couriers. Quote from their website.

"A worker is an employment classification that is unique under UK employment law. Workers are not employees but are entitled to the National Living Wage, holiday pay and pensions. Drivers remain self-employed for tax purposes and still have to complete an annual tax return".

I've got all my points in te OP from tax sites talking specifically about food delivery couriers.

You missed the next line which says "Please note that the above does not apply to couriers who use the Uber Eats platform, or Fleet partners who use the Rides platform."

Assuming you're right, then they need to register by 5 October next year assuming they started in April or later this year. You dont have to register until you already know if your turnover is above £1,000. If you're registered to do a return you must do a return, you can't be registered to do them and then not. 

When you do the return you will need to have both the self employment and employee details to hand as both go through the sausage machine, the later is easiest done with the P60

Boleyn19

MyRealNameToo said:

Boleyn19 said:

MyRealNameToo said:

Are you sure of the legal status? Uber drivers are Workers in the UK but their help page says it's different for delivery drivers but doesnt go on to provide more information. 

Yes, they aren't going to be Uber drivers as in taxis but Uber Eats couriers. Quote from their website.

"A worker is an employment classification that is unique under UK employment law. Workers are not employees but are entitled to the National Living Wage, holiday pay and pensions. Drivers remain self-employed for tax purposes and still have to complete an annual tax return".

I've got all my points in te OP from tax sites talking specifically about food delivery couriers.

You missed the next line which says "Please note that the above does not apply to couriers who use the Uber Eats platform, or Fleet partners who use the Rides platform."

Assuming you're right, then they need to register by 5 October next year assuming they started in April or later this year. You dont have to register until you already know if your turnover is above £1,000. If you're registered to do a return you must do a return, you can't be registered to do them and then not. 

When you do the return you will need to have both the self employment and employee details to hand as both go through the sausage machine, the later is easiest done with the P60

Hi, thanks for your reply. All couriers use the platform. Thanks for pointing out that sentence. It means the couriers are not workers but are self-employed. The taxi-drivers have more protection following a ruling by the Supreme Court in 2021.

From Uber Eats  https://help.uber.com/en-GB/driving-and-delivering/article/tax-faq?nodeId=e3348dca-a097-4a95-a25a-41d42eceb3ac on the regulations which came in Jan 2024

Do I need to report information to the tax authorities myself or is the reporting handled by Uber Eats?

You are responsible for your own personal tax affairs and you should continue filing a Self-Assessment Tax return as you have been doing. Please consult a tax advisor or accounting advisor for further advice.

https://www.virtue-accountants.co.uk/blog/uber-eats-deliveroo-and-amazon-drivers-tax-advice-for-uk-delivery-workers#:~:text=Your%20Tax%20Responsibilities%20as%20a,Assessment%20page%20to%20learn%20more.

"As a delivery driver for platforms like Uber Eats, Deliveroo, or Amazon, understanding your tax obligations is crucial to ensure you comply with HMRC and avoid penalties. Whether you're delivering food or packages, you are considered self-employed, which comes with its own set of responsibilities regarding tax returns, VAT, and expenses."

Boleyn19

MyRealNameToo said:

Assuming you're right, then they need to register by 5 October next year assuming they started in April or later this year. You dont have to register until you already know if your turnover is above £1,000. If you're registered to do a return you must do a return, you can't be registered to do them and then not. 

Thanks for the clarification on when to register, I thought it was October 2025. Thought it odd that they would register before they know they'd earned over the £1k.

LITRG

Hi Boleyn19 you may find this guidance on gig workers helpful: https://www.litrg.org.uk/working/gig-economy and our self-employment guide covers what you need to do re registering for self-employment, keeping business records and how to complete a tax return etc : https://www.litrg.org.uk/working/self-employment/self-employment-guide . All the best