As an Uber Eats courier you're self-employed, so Uber takes no tax from your payments — you settle it yourself through Self Assessment. You're taxed on profit (your earnings and tips, minus delivery costs), not on the totals shown in the Uber app. For 2026/27 the first £12,570 of profit is tax-free, then Income Tax is 20% up to £50,270, and Class 4 National Insurance adds 6% on profit between £12,570 and £50,270. Most cyclists claim delivery costs as 20p a mile; scooter riders 24p; car drivers 55p/25p. Enter your figures above to see the bill and the working.
- You pay tax on delivery profit = earnings + tips − allowable costs (or the £1,000 trading allowance, whichever is better).
- Claim vehicle running costs as simplified mileage: 20p/mile (bicycle), 24p (motorcycle/scooter), or 55p first 10,000 miles then 25p (car) — or actual costs, but not both.
- Tips count as taxable income, whether they come through the app or cash.
- Class 4 NI is 6% on profit £12,570–£50,270, then 2% above. Class 2 is £0 but profit over £7,105 still earns State Pension credit.
- File and pay your 2026/27 Self Assessment by 31 January 2028.
How Uber Eats delivery courier tax is calculated
Uber Eats couriers are independent contractors, not employees, so the money that lands in your bank is gross — nothing has been deducted for tax or NI. You declare it on a Self Assessment tax return and pay tax on the profit. The calculation has three steps:
- Work out delivery profit — add up everything Uber paid you plus any tips, then subtract your allowable delivery costs. The biggest single cost for most couriers is the vehicle, claimed either as flat-rate mileage or as a share of actual running costs (see below).
- Income Tax — your profit (stacked on top of any wages or other income) is taxed at 20%, then 40% above £50,270, after the £12,570 Personal Allowance. The calculator does this stacking for you.
- National Insurance — Class 4 NI is charged on the profit at 6% then 2%. Class 2 is £0 but still builds your State Pension once profit passes £7,105.
One thing to watch: the figure in your Uber statement is usually after Uber's service fee has been taken out, but you should report your gross fares and then claim the Uber service fee as an expense — your accountant or the gov.uk guidance will confirm which total your statement shows.
Allowable expenses for an Uber Eats courier
What you can claim depends almost entirely on what you deliver on. The vehicle cost is the big one, and you pick one method for it and stick with it for that vehicle:
- Simplified mileage (most couriers). A flat HMRC rate per business mile that covers fuel/charging, repairs, insurance and wear — you just log the miles. The 2026/27 rates are 20p a mile by bicycle, 24p by motorcycle or scooter, and 55p for the first 10,000 car miles then 25p. Cyclists and e-bike riders almost always use 20p because their real costs are low.
- Actual costs. Instead of mileage you can claim the business-use share of real running costs — fuel or charging, servicing, tyres, insurance, road tax, depreciation. This usually only beats mileage for a car with high repair bills, and it means keeping every receipt.
On top of your chosen vehicle method, these courier-specific costs are allowable:
- Phone & mobile data — the business-use percentage of your bill (the Uber Driver app is useless without it).
- Insulated delivery bag and equipment — thermal/pizza bags, phone mount, power bank, weatherproof gear bought for the job.
- Bike or e-bike maintenance and parts — tyres, brakes, chains, batteries, servicing (claim these only if you're using actual costs, not the 20p mileage rate, which already includes them).
- Insurance — hire-and-reward / food-delivery cover for scooters and cars, and public liability insurance.
A quick rule: if you claim the per-mile rate, you can not also claim fuel, repairs or vehicle insurance separately — the mileage rate already bundles them. Phone, delivery bag and public liability are separate and can be claimed alongside mileage.
The £1,000 trading allowance
If your total Uber Eats earnings for the year are £1,000 or less, they're usually tax-free and you don't have to tell HMRC — handy if you only deliver occasionally. Earn more than £1,000 and you must register for Self Assessment, but you can still deduct the flat £1,000 trading allowance instead of your real costs. For a cyclist with very low expenses, the £1,000 allowance often beats adding up mileage and bits of kit — switch the "deduct for expenses" option in the calculator to compare both and keep whichever leaves you better off.
When do I pay?
Self Assessment runs on the tax year (6 April 2026 to 5 April 2027 is "2026/27"). The return and any tax for that year are due by 31 January 2028. If your bill tops £1,000 you'll usually also make payments on account — two advance instalments towards the next year's tax, due 31 January and 31 July. Register with HMRC by 5 October after the end of your first tax year of delivering, so leave plenty of time before your first 31 January deadline.
Making Tax Digital from April 2026
From 6 April 2026, the self-employed whose gross trading and property income is over £50,000 must keep digital records and send HMRC quarterly updates under Making Tax Digital for Income Tax. Because the test is on gross income — your full Uber earnings before any mileage or fees — a full-time courier on a car or scooter can be caught even though their profit is much lower. Check where you stand with the qualifying-income checker.
Worked example — a cyclist courier
Priya delivers for Uber Eats on her bicycle around the city. Over 2026/27 she earns £18,000 (including app tips) and rides 9,000 business miles. She uses the simplified mileage method, plus a few extras.
| Step | Calculation | Amount |
|---|---|---|
| Mileage (bicycle) | 9,000 miles × 20p | £1,800 |
| Phone, delivery bag, public liability | £120 + £80 + £100 + £200 misc | £500 |
| Total allowable expenses | £1,800 + £500 | £2,300 |
| Profit | £18,000 − £2,300 | £15,700 |
| Income Tax | (£15,700 − £12,570) × 20% | £626 |
| Class 4 NI | (£15,700 − £12,570) × 6% | £187.80 |
| Class 2 NI | profit above £7,105 → treated as paid | £0 |
| Total to set aside | Income Tax + NI | £813.80 |
Priya's £1,800 mileage claim alone is well above the £1,000 trading allowance, so itemising her costs wins here. A courier earning far less would run the same comparison the other way.
Frequently asked questions
Does Uber Eats take tax off my pay?
No. As an Uber Eats courier you're self-employed, so your payments arrive gross with no tax or National Insurance deducted. You're responsible for declaring the income on a Self Assessment return and paying the tax yourself — which is why setting money aside as you go matters.
Can I claim mileage if I deliver on a bicycle?
Yes. HMRC's simplified mileage rate for bicycles is 20p per business mile in 2026/27, and it covers maintenance, parts and wear. You log your delivery miles and multiply by 20p. If you use this rate you can't also claim bike repairs or parts separately — the 20p already includes them.
Are tips taxable?
Yes. Tips are part of your trading income whether they come through the Uber app or as cash, so include them in your earnings before working out profit. The calculator treats your "earnings before expenses" figure as including tips.
Mileage method or actual vehicle costs — which is better?
For bicycles and e-bikes the 20p mileage rate almost always wins because real costs are low. For a car, actual costs can beat 55p/25p if you have heavy repair or insurance bills, but you must keep every receipt and stick with whichever method you pick for that vehicle. You cannot claim mileage and fuel/repairs for the same vehicle.
Do I have to tell HMRC if I only earn a little from Uber Eats?
If your total delivery earnings for the year are £1,000 or less, the trading allowance usually covers them and you needn't report them. Once you go over £1,000 you must register for Self Assessment, though you can still deduct the £1,000 allowance instead of your actual expenses if that leaves you better off.
Sources: Income Tax rates and Personal Allowances, Self-employed National Insurance rates, simplified expenses for vehicles (gov.uk), verified 11 June 2026. Estimates for information only — not regulated tax advice.