If you earn money through Uber, Deliveroo, Amazon Flex, TaskRabbit, or any other gig platform, you're probably self-employed in HMRC's eyes. That means Making Tax Digital could apply to you.

Are Gig Workers Self-Employed?

In most cases, yes. Platforms like Uber and Deliveroo treat you as a self-employed contractor, not an employee. You receive gross payments (no tax deducted), and you're responsible for reporting your income to HMRC.

If you currently file a Self Assessment tax return for your gig income, MTD will affect you.

Does MTD Apply to Me?

MTD for Income Tax applies if your gross self-employment income (total earnings before expenses) is above:

  • £50,000 — you must comply from April 2026
  • £30,000 — you must comply from April 2027

For gig workers, your gross income is the total you received from the platform before any deductions (including the platform's commission fees). So if you earned £55,000 in gross fares through Uber, MTD applies — even if your take-home after Uber's cut and expenses was much less.

Not sure if you're above the threshold? Use our free MTD checker.

What Changes Under MTD?

Currently, you file one Self Assessment tax return at the end of the tax year. Under MTD:

  1. Keep digital records of all your income and expenses throughout the year
  2. Submit quarterly updates to HMRC (four times a year)
  3. Submit a Final Declaration after the tax year

The quarterly updates are simple summaries — total income and total expenses for the quarter. Not a detailed breakdown of every trip.

Tracking Gig Economy Income and Expenses

Income

Most platforms provide earnings summaries — weekly or monthly statements showing your gross earnings. You'll need to record these in your MTD software.

If you work across multiple platforms (e.g., Uber and Deliveroo), you may need to decide whether that's one self-employment or two. If they're the same type of work (courier/delivery), they're usually one self-employment. If they're genuinely different trades, they might be separate.

Common Expenses You Can Claim

Gig workers often forget deductions they're entitled to:

  • Vehicle costs — fuel, insurance, road tax, MOT, repairs (or you can use simplified mileage rates: 45p per mile for the first 10,000 miles, 25p after)
  • Phone and data — the business-use proportion of your mobile phone bill
  • Platform fees — Uber's commission, service charges
  • Safety equipment — hi-vis jacket, thermal bags, phone mount
  • Parking and tolls — for business journeys (not commuting)
  • Cleaning costs — if you need to keep your vehicle clean for passengers

If you use simplified expenses (mileage rate), you claim a flat rate per mile instead of actual vehicle costs. This is simpler and often more tax-efficient for gig workers. For the full HMRC rate tables and a comparison of when simplified beats actual costs, see our motor, home office and simplified expenses guide.

See our full guide on what expenses you can claim under MTD.

The Mileage Tracking Challenge

For Uber drivers and delivery riders, mileage is your biggest expense. You need to track:

  • Business miles — trips with passengers or deliveries, plus driving to pick-ups
  • Personal miles — commuting to your starting point, personal errands

Keep a simple log: date, start mileage, end mileage, purpose. Some apps automate this, but even a note in your phone works.

At each quarterly update, you'll multiply your business miles by the mileage rate and report that as your vehicle expense.

Platform-by-Platform: How Income Works

Different platforms handle earnings differently. Here is how the main ones work for MTD purposes.

Uber (Rides and Eats)

Uber provides weekly earnings statements. Your gross income for MTD is the total fare charged to customers, not the amount deposited in your bank. Uber's service fee (typically 20-25%) is a business expense you can claim. If you earned £1,000 in fares and Uber took £200 in commission, your gross income is £1,000 and you claim £200 as a platform fee expense.

Deliveroo

Deliveroo pays per delivery, including base fees, distance bonuses, and tips. All of these count as gross income. Deliveroo does not charge a commission in the same way Uber does — they set the delivery fee directly. Your gross income is the total Deliveroo paid you, including tips received through the app.

Amazon Flex

Amazon Flex pays per delivery block. Your gross income is the total Amazon paid you, including any surge pricing or tips. Amazon does not deduct commission from your earnings. Vehicle costs are your responsibility and your main deductible expense.

TaskRabbit and Other Platforms

TaskRabbit charges a service fee (typically 15%) on top of what the client pays. Your gross income is the amount you receive after TaskRabbit's fee — unlike Uber, where you record the full fare. Check each platform's terms to understand whether fees are deducted from your payment or added to the client's bill.

Common Mistakes Gig Workers Make With MTD

1. Using Net Earnings Instead of Gross

The £50,000 threshold is based on gross income — the total before platform fees, fuel, and other costs. Many gig workers look at their bank deposits and think they are under the threshold, when their gross platform earnings are actually above it.

2. Not Separating Business and Personal Mileage

HMRC only allows you to claim mileage for business journeys. Driving from home to your first pick-up location is generally considered commuting (not claimable). Driving between jobs is business mileage. Keeping this distinction clear from the start avoids problems later.

3. Forgetting to Record Cash Tips

If you receive cash tips, these are taxable income and must be included in your quarterly updates. Platform tips are usually tracked automatically, but cash tips are your responsibility to record.

4. Mixing Personal and Business Expenses

If you use your car for both personal and business trips, you must only claim the business proportion. Using simplified mileage rates (45p per mile) avoids this problem entirely — you just need an accurate mileage log.

A Quarterly Update Walkthrough for Gig Workers

Here is what a typical quarterly update looks like for an Uber driver.

Quarter 1 (6 April to 5 July):

Category Amount
Gross fare income £14,200
Uber service fee (expense) £2,840
Mileage: 4,500 business miles × 45p £2,025
Phone bill (70% business use) £84
Phone mount and charger £35
Total expenses £4,984
Net profit for quarter £9,216

You enter these figures into your MTD software and submit. The whole process takes five to ten minutes if you have kept your records up to date during the quarter.

For a step-by-step walkthrough of the submission process, see our guide on your first MTD quarterly update.

What If I Earn Under the Threshold?

If your gross gig income is below £30,000, MTD does not apply yet. You continue filing Self Assessment as normal.

However, HMRC plans to lower the threshold further in future years, potentially to £20,000. Getting set up with MTD software now means you are ready when the threshold catches up.

You can also voluntarily register for MTD before you are required to. Some people prefer this because spreading the reporting across four quarters is easier than doing everything in January.

Choosing MTD Software as a Gig Worker

Gig workers have simple finances compared to most businesses — income from one or two platforms, vehicle expenses, and a handful of other costs. You do not need a full accounting package with invoicing, payroll, and bank feeds.

What you do need: - Quarterly HMRC submissions — the legal requirement - Simple expense categories — vehicle costs, phone, platform fees - No accounting jargon — you are a driver or rider, not a bookkeeper

For a comparison of your options, see our MTD software comparison for 2026 or our guide to the cheapest MTD software in the UK.

Getting Started

  1. Check if MTD applies to you — use our free checker
  2. Start tracking income and expenses digitally — even before MTD kicks in, getting into the habit now saves stress later
  3. Choose MTD software — you need something that connects to HMRC's API to submit quarterly updates

ClearMTD is designed for people who want simple, no-fuss MTD compliance. Enter your income and expenses, and we handle the HMRC submissions. From £7.50/month.

No accounting knowledge needed. No jargon. Just the numbers. Get started free.

Further Reading