Gig Economy Guides
Amazon Flex UK: Why is there no tax deducted from your pay?
If you have just started driving for Amazon Flex, you might have noticed that your weekly payments arrive in your bank account with absolutely zero tax or National Insurance deducted. This is not a mistake, but it is a massive trap if you do not understand the rules. You are self-employed, and HMRC will eventually come for their cut.
Unlike warehouse workers who are direct employees of Amazon, Amazon Flex delivery drivers in the UK are classed as Independent Contractors (self-employed). This fundamental legal difference changes everything about how you are paid.
Why Amazon Doesn't Give You a Payslip
When you work as an employee (PAYE), your employer acts as a tax collector for the government. They look at your gross pay, deduct Income Tax and National Insurance, and give you a payslip showing the deductions.
Because you are an independent contractor, Amazon has no legal right to withhold your tax. Instead of a payslip, they generate a Remittance Advice (essentially a receipt) and pay you 100% of your gross earnings. The legal responsibility to calculate, report, and pay your taxes rests entirely on your shoulders.
HMRC is now watching Amazon Flex
As of 2026, the new digital platform reporting rules mean that Amazon is legally forced to send all of your earnings data directly to HMRC. You can no longer hide gig-economy income. If you do not declare it, HMRC already knows and will issue severe fines.
Read the HMRC Digital Platform Rules →How Much Tax Do You Actually Owe?
Whether you owe any tax at all depends on how much you earn from Amazon Flex, and whether you have another "main" job.
The £1,000 Trading Allowance
If your total income from Amazon Flex (and any other side hustles) is less than £1,000 in a single tax year, you do not owe any tax, and you do not even need to register with HMRC. This is covered by the Trading Allowance.
If Flex is your ONLY job
If you have no other employment, you are entitled to the standard Personal Allowance (£12,570 for 2026/27). You will only pay 20% Income Tax on any Amazon Flex profits you make above £12,570. You will also pay Class 4 National Insurance (currently 6%) on profits above £12,570.
If Flex is a SECOND job (Side Hustle)
If you already have a full-time job paying over £12,570, your main job uses up your entire tax-free allowance. This means every single penny of profit you make from Amazon Flex (after deducting the £1,000 Trading Allowance or your expenses) will be taxed at 20% (or 40% if you are a higher rate taxpayer).
You must save at least 20% to 30% of every Amazon payment in a separate bank account to prepare for your tax bill.
How to Claim Driving Expenses
Because you are self-employed, you are taxed on your Profit, not your total revenue. Profit is your Amazon income minus your business expenses. As a delivery driver, your biggest expense is your car.
Instead of keeping receipts for every drop of petrol, HMRC allows you to use the Simplified Mileage Rate:
- You can claim 45p per mile completely tax-free for the first 10,000 business miles you drive in a year.
- For every mile after 10,000, you can claim 25p per mile.
You must keep a strict mileage log (using an app or a notebook) recording exactly how many miles you drive while out on Amazon Flex blocks. Commuting from your house to the depot does not count. Only the mileage from the depot, between drops, and back to the depot counts.
If you earned £3,000 from Amazon but drove 1,000 business miles, you can deduct £450 (1000 x 45p) from your earnings. You will only pay tax on £2,550.
How to Pay Your Tax (Self-Assessment)
If you earn more than £1,000 in a tax year, you must register for Self Assessment with HMRC by October 5th following the end of the tax year.
You will then need to fill out an online tax return by January 31st, declaring your Amazon Flex income and your mileage expenses. HMRC will calculate your final tax bill, and you must pay it via bank transfer before the January 31st deadline.
Frequently Asked Questions
Does Amazon pay my National Insurance?
No. As a self-employed contractor, you are responsible for paying your own Class 4 National Insurance. This will be calculated automatically when you submit your Self Assessment tax return.
Can I claim the Trading Allowance and Mileage?
No. You must choose one or the other. You can either deduct a flat £1,000 (Trading Allowance) from your earnings with no questions asked, OR you can calculate your exact expenses (like 45p per mile). You cannot do both. As a driver, your mileage almost always exceeds £1,000, so claiming mileage is usually better mathematically.