Uber & Deliveroo “Payslip” Explained
Uber drivers and Deliveroo riders are self-employed — not PAYE employees. Your app earnings statement isn't a payslip, and tax isn't deducted automatically. Here's what you need to know.
Unlike PAYE employment, Uber and Deliveroo do not deduct income tax or NI from your earnings. You are responsible for setting aside money and paying HMRC through self-assessment. Many new drivers don't realise this until they receive an unexpected tax bill.
PAYE Employment vs Gig Economy Self-Employment
Gig workers are treated entirely differently from regular employees for tax purposes.
| Aspect | PAYE (Employed) | Self-Employed (Gig) |
|---|---|---|
Employment status Uber, Deliveroo, and most other gig economy platforms class workers as independent contractors. You are responsible for your own tax. | PAYE employee | Self-employed worker |
Tax deduction No automatic deductions. You must register for self-assessment and complete a tax return each year. | Deducted by employer (PAYE) | Self-assessment — you pay HMRC directly |
National Insurance Self-employed workers pay Class 4 NI on profits. Class 2 NI was abolished from April 2024, but you can pay it voluntarily. | Class 1 — employer deducts | Class 4 NI |
Income tax rate You can deduct allowable business expenses (mileage, phone, equipment) before calculating your taxable profit. | Basic 20%, Higher 40% | Same rates — but on profits, not gross earnings |
Payslip / statement The app statement is NOT a payslip. It shows gross earnings before any tax deduction. You owe tax on top of this. | Monthly payslip from employer | Weekly/monthly earnings statement from the app |
Pension You need to arrange your own pension. Consider a SIPP. Any contributions get 20% basic rate tax relief added by HMRC. | Employer auto-enrols you | No auto-enrolment |
What expenses can I claim?
Self-employed gig workers can deduct allowable business expenses from their earnings before calculating taxable profit. These are the most common deductible expenses for Uber drivers and Deliveroo riders.
Always keep records and receipts. HMRC can ask for evidence up to 5 years after the tax year ends.
How much tax should I set aside?
A rough rule of thumb: set aside 25–30% of your gross gig earnings for tax and NI. This covers:
- Income tax at 20% on profits above the personal allowance (£12,570)
- Class 4 NI at 6% on profits between £13,570 and £50,270 (2% above)
Your allowable expenses will reduce your taxable profit, meaning the actual tax bill will be lower than 25% of gross — but it's safer to over-save than under-save.
Calculate your Self-Employed Tax
Make sure your monthly budget adds up. Use our self-employed tax calculator to estimate your profit and the exact tax bill you'll face this year.