Do Amazon Flex drivers pay tax?

Yes. Amazon Flex drivers are self-employed, not employees. If you earn over £1,000 per year, you must register for Self Assessment and pay Income Tax and National Insurance on your profits after expenses.

What expenses can Amazon Flex drivers claim?

You can claim mileage (45p per mile for first 10,000 miles, 25p thereafter), phone costs (business percentage), car insurance (business percentage), parking, and other work-related costs like bags or hand warmers.

Do I need to register as self-employed for Amazon Flex?

Yes, if you earn over £1,000 from Amazon Flex. Register with HMRC for Self Assessment by 5 October following the tax year you started. Under £1,000, the Trading Allowance covers your income tax-free.

Can I claim mileage for Amazon Flex deliveries?

Yes. Claim 45p per mile for the first 10,000 business miles, then 25p per mile. Track every delivery mile—from collection point to final drop-off and back. Use a mileage log or tracking app.

Amazon Flex Tax: What Drivers Need to Know

Amazon Flex drivers are self-employed and must pay tax on their earnings. If you earn over £1,000 from Flex blocks, register for Self Assessment with HMRC, track your expenses (especially mileage), and file a tax return by 31 January each year. You can significantly reduce your tax bill by claiming allowable expenses.

This guide covers everything Amazon Flex drivers need to know about UK tax.

Amazon Flex Employment Status

You're Self-Employed, Not Employed

| Characteristic | Amazon Flex | |----------------|-------------| | Employment status | Self-employed | | Employer responsibility | None from Amazon | | Tax deduction | No PAYE (you pay your own tax) | | NI deduction | No (you pay your own NI) | | Holiday/sick pay | None |

Amazon treats you as an independent contractor. You're responsible for:

Registering with HMRC
Calculating your tax
Filing Self Assessment
Paying tax and NI

What This Means

| Aspect | Impact | |--------|--------| | You receive gross pay | No tax deducted by Amazon | | You must register | Self Assessment required (if over £1,000) | | You can claim expenses | Reduce your tax bill | | You pay NI | Class 2 and Class 4 |

When to Register

Earnings Over £1,000

| Annual Earnings | Action Required | |-----------------|-----------------| | Under £1,000 | No action (Trading Allowance covers it) | | Over £1,000 | Register for Self Assessment |

How to Register

Go to gov.uk/register-for-self-assessment
Select "Self-employed or sole trader"
Describe your work (e.g., "Delivery driver")
Receive your UTR within 10 working days

Deadline: Register by 5 October following the tax year you started.

Example: Started Flex in November 2024 → Register by 5 October 2025

Amazon Flex Income

What to Report

Report all earnings from Amazon Flex:

| Income Type | Taxable? | |-------------|----------| | Block payments | Yes | | Surge payments | Yes | | Tips (if any) | Yes | | All Flex earnings | Yes |

Where to Find Your Earnings

| Source | How to Access | |--------|---------------| | Amazon Flex app | Earnings tab shows all payments | | Bank statements | All deposits from Amazon | | Tax summary | Amazon provides annual summary |

Keep records of all payments received.

Amazon Flex Expenses

Mileage (Simplified Expenses)

The biggest expense for Flex drivers is mileage:

| Miles Per Year | Rate | |----------------|------| | First 10,000 | 45p per mile | | Over 10,000 | 25p per mile |

What Miles Count

| Journey | Claimable? | |---------|-----------| | Home to first collection point | No (commuting) | | Collection point to delivery addresses | Yes | | Between delivery addresses | Yes | | Final delivery to home | Yes (if returning) | | Home to return location for undelivered parcels | Yes |

Note: Your journey from home to the Amazon depot/collection point is treated as commuting and isn't claimable, unless it's different each day.

Example: Mileage Calculation

Weekly Flex blocks:

| Item | Miles | |------|-------| | Average per block | 50 miles | | Blocks per week | 5 | | Weekly miles | 250 miles | | Annual miles | 13,000 miles |

Annual mileage claim:

| Calculation | Amount | |-------------|--------| | First 10,000 × 45p | £4,500 | | Next 3,000 × 25p | £750 | | Total | £5,250 |

Phone Expenses

You use your phone for the Flex app:

| Option | Claim | |--------|-------| | Business-only phone | 100% of contract | | Personal phone (business use) | Business % of contract |

Example:

Phone contract: £30/month
Business use: 60%
Annual claim: £30 × 60% × 12 = £216

Car Insurance

If your personal insurance covers delivery work:

| Situation | Claim | |-----------|-------| | Standard policy (covers Flex) | Business % of premium | | Additional delivery cover | 100% of extra premium | | Hire and reward policy | Business % |

Check your policy: Standard car insurance may not cover delivery driving. You may need to add "hire and reward" cover.

Other Allowable Expenses

| Expense | Claimable? | |---------|-----------| | Car washes (for work) | Yes (business %) | | Parking for deliveries | Yes | | Congestion charge | Yes (delivery days) | | Toll roads | Yes (delivery journeys) | | Phone mount | Yes | | Delivery bags/trolley | Yes | | Hi-vis vest | Yes | | Hand warmers/gloves | Yes | | Sat nav (if separate) | Yes | | Car maintenance | Not with mileage method |

Mileage vs Actual Costs

Choose one method:

| Method | What You Claim | |--------|----------------| | Simplified (mileage) | 45p/25p per mile | | Actual costs | Fuel, insurance, repairs, depreciation, etc. |

Recommendation: Mileage method is simpler and often better for delivery drivers.

Important: Once you choose a method for a vehicle, you must stick with it for that vehicle.

Calculating Your Tax

Step 1: Calculate Profit

Profit = Amazon Flex Earnings − Allowable Expenses

Step 2: Apply Personal Allowance

The first £12,570 of profit is tax-free.

Step 3: Calculate Tax and NI

| Tax | Rate | |-----|------| | Income Tax | 20%/40%/45% | | Class 2 NI | £3.45/week (if profit over £6,725) | | Class 4 NI | 6%/2% of profits |

Example: Full Calculation

Tom: Part-Time Amazon Flex Driver

| Item | Amount | |------|--------| | Amazon Flex earnings | £18,000 | | Expenses: | | | Mileage (12,000 miles) | −£5,150 | | Phone (60% business) | −£216 | | Additional car insurance | −£120 | | Parking/tolls | −£80 | | Total expenses | −£5,566 | | Taxable profit | £12,434 |

Tax calculation:

| Tax | Calculation | Amount | |-----|-------------|--------| | Personal Allowance | £12,434 − £12,570 | £0 taxable | | Income Tax | £0 × 20% | £0 | | Class 2 NI | £3.45 × 52 | £179 | | Class 4 NI | (£12,434 − £12,570) × 6% | £0 | | Total tax | | £179 |

Tom pays only £179 in NI because his profit is below the Personal Allowance.

Example: Higher Earnings

Sarah: Full-Time Amazon Flex Driver

| Item | Amount | |------|--------| | Amazon Flex earnings | £32,000 | | Expenses: | | | Mileage (25,000 miles) | −£8,250 | | Phone | −£300 | | Car insurance (extra cover) | −£200 | | Other expenses | −£150 | | Total expenses | −£8,900 | | Taxable profit | £23,100 |

Tax calculation:

| Tax | Calculation | Amount | |-----|-------------|--------| | Income Tax (20%) | (£23,100 − £12,570) × 20% | £2,106 | | Class 2 NI | £3.45 × 52 | £179 | | Class 4 NI | (£23,100 − £12,570) × 6% | £632 | | Total tax | | £2,917 |

Amazon Flex Plus Other Income

Day Job + Flex

If you're employed and do Flex on the side:

| Source | How Taxed | |--------|-----------| | Employment | PAYE (employer deducts) | | Amazon Flex | Self Assessment (you pay) |

Your Flex profit is added to employment income:

| Income | Amount | |--------|--------| | Salary | £30,000 | | Flex profit | £8,000 | | Total | £38,000 |

If your day job uses your Personal Allowance, Flex profit is taxed at 20% from the first pound.

Multiple Gig Economy Platforms

If you work for Flex, Deliveroo, Uber Eats, etc.:

| Platform | Treatment | |----------|-----------| | All platforms | Combined as self-employment | | Expenses | Claim across all work | | Single tax return | Report all together |

Filing Your Tax Return

What You Need

| Information | Source | |-------------|--------| | Total Flex earnings | App/bank statements | | Total mileage | Mileage log | | Expense receipts | Keep all records |

Deadline

| Deadline | Date | |----------|------| | Online tax return | 31 January | | Payment | 31 January |

For 2024/25 tax year → File and pay by 31 January 2026

Which Forms

| Form | Purpose | |------|---------| | SA100 | Main tax return | | SA103 | Self-employment supplementary pages |

Record Keeping

What to Keep

| Record | How Long | |--------|----------| | Amazon Flex earnings statements | 6 years | | Bank statements | 6 years | | Mileage log | 6 years | | Expense receipts | 6 years |

Mileage Tracking

Track every business mile:

| Method | Options | |--------|---------| | App | MileIQ, Everlance, Stride | | Spreadsheet | Date, start/end, miles, purpose | | Logbook | Physical notebook |

Essential: Without records, HMRC may disallow mileage claims.

Example Mileage Log

| Date | From | To | Miles | Purpose | |------|------|-----|-------|---------| | 15/05/25 | Depot | Multiple addresses | 52 | Flex block | | 16/05/25 | Depot | Multiple addresses | 48 | Flex block | | 17/05/25 | Home | Return location | 8 | Undelivered parcels |