If you are looking into parcel delivery jobs in Essex, there is a good chance you will be working as a self-employed driver. That gives you more freedom over how you work, but it also means you are in charge of your own tax. No employer takes it out of your pay for you.
This can feel daunting if you have never done it before, but it does not need to be. Here is a plain-English rundown of what to expect.
Employed or self-employed?
Most multi drop and courier roles are self-employed positions, sometimes called “owner driver” work. You get paid for the drops or hours you complete, rather than a regular wage with tax already taken out. Being self-employed means telling HMRC you are working for yourself, keeping records of your income and costs, and working out your own tax and National Insurance each year. If you are unsure how a role is classed, check with the company before you start.
Registering and Self Assessment
Before you can pay tax properly, you need to register with HMRC. This is free and quick to do online, and should be done as soon as you start working for yourself, as there are deadlines. Once registered, you will report your earnings each year through Self Assessment.
| Step | What it means |
|---|---|
| Register with HMRC | Tell HMRC you are self-employed |
| Keep records | Track income and expenses through the year |
| Fill in a tax return | Submit your figures once a year, online |
| Pay what you owe | Pay your tax bill by the deadline |
The tax year runs from 6 April to 5 April, with an online tax return deadline each January.
Mileage and expenses
You can claim for some of the costs of doing the job, which lowers the tax you pay, since you are only taxed on your profit. Drivers commonly track their mileage, fuel and running costs, phone costs used for work, and other essentials like a delivery bag or safety gear. Keep a simple record from day one, whether that is a notebook, spreadsheet, or app, and save your receipts as you go.
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National Insurance
Self-employed drivers usually pay Class 2 and Class 4 National Insurance, depending on earnings. This counts towards things like your State Pension. Rates and thresholds change each tax year, so check the official GOV.UK guide to self-employed National Insurance rates for current figures rather than guessing.
Getting it right
Set money aside regularly so you are not caught out at tax time, and update your records weekly rather than leaving it all to the end of the year. HMRC offers free guidance, and an accountant can help if things get complicated.
If you have questions about pay and self-employed status, our common questions page is a good place to start, or read about insurance options for gig delivery drivers.
Ready to get started? Apply for driver roles with Skilled Solutions today, across Essex, Kent, London, and West Sussex.
