Calling all Amazon Flex delivery drivers in the UK! Did you know that your self employed? Which means you are responsible for managing your taxes.
This may sound stressful, and a little daunting, so here is a list of things we tell our customers to do to avoid fines, overpaying tax, and generally staying on the right side of HMRC’s Laws:
1. Register as Self-Employed – Sign up with HMRC for Self Assessment and get a Unique Taxpayer Reference (UTR), or you can simply ask us to register you today.
2. Keep Accurate Records – As a self employed Amazon Flex delivery driver you need to keep records of all your income and expenses.
3. Understand Allowable Expenses – research and know what your business-related costs will include such as vehicle maintenance, petrol costs and mileage. Importantly, make sure to only include the 16 expenses delivery drivers claim on a tax return; otherwise, you will find yourself in trouble with HMRC.
If there is an Amazon Flex expense you are not sure if you can claim, why not ask us by leaving a comment at the bottom of this page?
4. File a Self Assessment Tax Return – Complete and submit your tax return by the deadline (31 January for online submissions).
5. Pay Income Tax and National Insurance – Calculate and pay what you owe based on your profits, and most importantly do so before the HMRC deadlines to avoid fines and penalties.
6. Did you know Ugo Tax is a dedicated accountancy service for delivery drivers across the UK, helping them navigate the stressful world of self-employed tax?. We support people not only working for Amazon Flex, but also Deliveroo, Uber Eats and Just Eat. If you have questions about Amazon Flex tax, why not get in contact today.
7. Set Money Aside for Taxes – A great tip is to set aside money each month to cover taxes you may have to pay at the end of the tax year. This is because tax is not deducted automatically from your Amazon Flex Pay. At Ugo Tax, we advise our Amazon Flex delivery driver clients to save between 15% and 20% of their monthly income to ensure they have funds available to pay any tax that may be due.
8. Understand VAT Rules – depending on your circumstances you may need to register for VAT.
9. Check Payment on Account Requirements – Once you start paying tax over £1000, you may need to make an advance payment on account for your next tax year.
10. Claim Mileage Allowance if Using Your Own Vehicle – claiming a mileage allowance can be a simple and great way of covering your vehicle costs. Please be aware that there are strict rules governing mileage allowance claims, so it is essential to consult a professional first. Making incorrect claims can result in you recieving fines from HMRC.
11. Seek Professional Advice if Needed – if you work for Amazon Flex part-time, and also have a full time job, speak to Ugo Tax to ensure you understand your complex tax situation.
FAQ’s
Is Amazon Flex worth it?
You may be wondering is Amazon Flex worth it, especially if you’re working full-time already. Amazon Flex is an incredibly flexible side hustle that allows you to book slots at your convenience, such as the weekends, and is particularly busy in the lead-up to Christmas. This makes it really popular for people looking to make a bit of extra money. Make you understand self-employed tax and your responsibilities as a freelancer.
Can I use the mileage method instead of actual vehicle costs?
Yes, claiming mileage instead of adding up individual vehicle costs is a simpler way of going about claiming expenses. You can claim 45p per mile for the first 10,000 miles and 25p per mile thereafter. There are important rules, though, when claiming mileage, so always speak to a professional.
How can Ugo Tax accountants help Amazon Flex delivery drivers?
An accountant will be able to support you in the following ways:
- Help to register you as self employed with HMRC.
- Ensure that you claim for all your allowable expenses.
- File your self-assessment tax return correctly and on time to avoid fines and penalties.
- Reducing your stress allows you to focus on deliveries.
What happens if I have another job alongside Amazon Flex?
You will need to declare your Amazon Flex pay separately via a tax return and pay any self-employed tax that might be due.
Got a question?
Why not get in touch if you have a question about how to submit your Amazon Flex tax return?
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Amazon Flex Delivery Driver Tax Return
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