If you work as a delivery driver in the UK, knowing how much tax a Deliveroo rider should save for self-assessment is pretty essential. Whether you work full time or simply make a little bit of extra money on the side, you need to know how your income is taxed to avoid an unexpected tax bill from HMRC.
Whilst the amount of money you need to set aside can depend on how much you are earning, what expenses you have as well as your personal expenses, a general rule would be to save 20-30% of your profits.
How much tax should a Deliveroo rider save?
One of the simplest and easiest ways to prepare for any tax you may have to pay is to transfer a percentage of your profits into a separate saving account.
The table below shows examples of how much you could set aside each week using the 25% saving rule
| Weekly Profit | 25% Weekly Tax Saving | Savings Over 52 weeks |
|---|---|---|
| £200 | £50 | £2600 |
| £300 | £75 | £3900 |
| £400 | £100 | £5200 |
| £500 | £125 | £6500 |
Please bear in mind that the figures above are only examples. Your actual tax bill at the end of the year could be higher or lower depending on your circumstances.
For example, if your only job is working for Deliveroo your taxable income is going to be lower in comparison to someone who has a full time job and works for Deliveroo on the side.
If your still not sure, we offer free calls to clients to discuss their personal circumstances, and tax they may have to pay so why not contact us today.
How does Deliveroo rider tax work in the UK?
If you earn under £1000 in tax year from Deliveroo, the good news is you do not have to declare this income to HMRC. This is known as the self-employed trading allowance, and means you can make up to a £1000 in a tax year without paying income tax or national insurance contributions.
If however you make over this amount as a Deliveroo rider you need to complete a self assessment tax return, and you may have to pay the following:
Income Tax.
Income tax is calculated using your taxable income, minus any expenses you have to do your job.
In 2026/27 people can earn up to £12,570 (which is known as your personal allowance) before they have to pay tax. Your personal allowance is spread over your income so if you work full time and work for deliveroo on the side, this allowance is spread over both.
The amount of tax you pay if required is 20%, which is the basic rate of income tax.
National Insurance
Self-employed Deliveroo riders may also have to pay Class 4 National Insurance contributions which for 2026/2027 are charged as follows
- 6% on profits between £12,570 – £50,270
- 2% on profits above £50,270
The amount of income tax and National Insurance contributions you pay may depend on the amount of expenses you.
How do Deliveroo riders pay less tax?
By claiming legitimate expenses you can reduce the amount of tax you pay. There are 16 expenses delivery drivers claim on a tax return and must adhere to HMRC’s rules.
HMRC’s rules state that you can only claim expenses if they are wholly, exclusively and necessarily incurred for work, and include things like:
Mobile phone cost, however if your phone is for personal use and collecting orders from Deliveroo you can only claim a proportion of the monthly amount.
Other expenses may include costs of using a vehicle such as a car or motorcycle, relevant insurances, and even protective equipment if you do Deliveroo on a bicycle.
What happens if a Deliveroo rider does not save enough for tax?
If you fail to save enough money in time to pay your tax bill, or you don’t save at all, you may be fined by HMRC. Potential consequences by HMRC include late-payment interest and penalties fees.
Things you can do to stop this from happening is to set up a separate bank account and save what you can in advance of any tax deadlines.
If you do find that you owe tax, speak to HMRC as you may be able to set up a payment plan to help manage paying your tax.
