Working as a Deliveroo rider offers flexibility to choose when you work, and make money on your schedule.
However, as a self employed delivery rider you have to navigate the challenges of understanding self-employed delivery rider tax, or which Deliveroo rider allowable expenses you can claim on your tax return.
Don’t worry though, as we act as an accountant for delivery drivers in the UK, and help people understand how to claim eligible tax deductions, avoid costly mistakes and only pay tax they legally owe.
In this post we explain how an accountant can help Deliveroo riders pay less tax, manage self assessment, and keep more of their hard earned money.
Claim Deliveroo Allowable Business Expenses
Arguably one of our main priorities, and requests from clients who sign up with Ugo Tax is how can Deliveroo riders pay less tax. One of those ways is for us to identify legitimate business expenses they have.
Deliveroo riders pay tax on their taxable profit, rather than their entire pay. One way to reduce the amount of profit, and subsequently the amount of tax riders have to pay is by us claiming allowable business expenses.
IMPORTANTLY: The expense must qualify under HMRC’s strict rules.
What Expenses Can Deliveroo Riders Claim?
Ugo Tax will help identify Deliveroo rider expenses they can claim based on circumstances, vehicle usage and method used to calculate expenses, and include the following:
Bicycle Expenses: Qualifying parts, servicing and maintenance of the bicycle used to make deliveries.
Motorcycle Expenses: depending on method you choose, you can claim motorcycle of scooter fuel, servicing and maintenance and insurance costs.
Car Expenses: Subject to HMRC’s rules we can claim your relevant car costs depending on usage, and whether you use your vehicle for personal as well as business use. Cost include Insurance, as well as servicing and maintenance.
Phone Usage: We can claim a proportion of your mobile phone bill. A large amount of Deliveroo riders will use their personal phone while logged on. The good news is we can claim a proportion of your monthly bill.
Protective Clothing: Deliveroo scooter riders as well as cyclist can claim protective clothing such as helmets, hi-vis or gloves and jackets.
Accountancy Fee’s: The fees we charge for submitting your tax return each year.
Travel and parking: Eligible costs such as parking fees if you have to pay to park while making deliveries.
HMRC have strict rules on what and how you claim your Deliveroo rider expenses, however we can review your costs and advise you on what can be claimed. We can also advise you on what is going to make you the most tax efficient, meaning you pay less tax.
Understand Mileage Allowances and Vehicle Costs
If you have ever wondered, can Deliveroo riders claim mileage expenses, you will be pleased to know that you can. Mileage allowances is a simplified method for claiming costs associated with using your car, bicycle or motorcycle when working for Deliveroo.
We can help you decide wether it is beneficial to claim actual vehicle costs (such a fuel, insurance and servicing and maintenance) or a mileage allowance which is where you claim for business miles you cover whilst working.
Reduce your tax bill through accurate record keeping
One of our main tasks as accountants for Deliveroo riders is to ensure you are keeping accurate records whilst you are self employed.
Why is this important? If you fail to store receipts or keep accurate records of your business expenses you may, miss out on important deductions or struggle to support your claim if HMRC asks questions.
We can help you create a book keeping system to track:
- Delivery driver business expenses and receipts
- Track business mileage and vehicle costs
- Your Deliveroo pay
- Equipment purchases
- Accountancy Fees and other professional cost
- Records needed to complete you tax return
Keeping on top of your record keeping will help you stay organised making it easier to calculate your taxable profits, claim for your Deliveroo rider expenses and avoid unnecessary HMRC fines.
Complete your Deliveroo rider tax return correctly
If you’re wondering how do i complete my Deliveroo tax return, don’t panic, we got you. When you are a self-employed delivery driver we support you by completing your self-assessment tax return, you avoid penalties and fines, and most importantly check your figures are correct.
We will also assess if you need to register for self-assessment, explain if you need to make a payment on account, and also work out how much tax a Deliveroo rider should save for during the year.
There is also a lot of deadlines and important dates to remember when you are a self-employed Deliveroo rider in the UK. But we ensure you miss non of them:
- The deadline for tax return submission for your tax year ending on the 5th April is 31 January following the end of the tax year.
- If you owe tax, that must also be paid by 31st January following the end of the tax year ending on the 5th April.
- You may also be required to make a payment on account by the 31st July after the 31st January deadline.
If you are thinking about how to pay less tax as a Deliveroo rider, why not get in contact with us today.
We also act as an accountant for delivery drivers who work for Uber Eats, Just Eat and Relay and can assist you in ways to reduce your self-employed delivery rider tax.
