Sole trader
A sole trader is a self-employed person trading as themselves rather than through a company. You and the business are the same legal person: you keep the profit and you carry the risk personally.
Correct for the 2026/27 tax year. Last checked 12/09/2026.
Almost every UK gig driver is a sole trader. There is nothing at Companies House, no annual accounts to file and no separate legal entity, just an obligation to report your profit each year.
What it means for your money
You pay income tax and Class 4 National Insurance on your profit, not on your turnover. Profit is what the platforms paid you minus what the work cost you, and mileage is usually the largest single cost.
Because there is no company between you and a claim, your insurance matters more, not less. That is an argument for the right policy rather than an argument for incorporating.
Where to read more
Registering as a sole trader, and do I need a limited company for the comparison.
Sources
Related
Registering as a sole trader: the whole process
Everything from deciding whether you need to register, through getting a UTR, to the 5 October deadline and what arrives in the post.
HMRC & taxUpdated 20/08/2026
Should I set up a limited company for delivery work?
Almost certainly not at gig-driver earnings. The extra accounting and filing cost usually outweighs the tax saving until profits are well into five figures.
HMRC & taxUpdated 19/08/2026
UTR (unique taxpayer reference)
A UTR is the ten-digit number HMRC gives you when you register for Self Assessment. It identifies you as a taxpayer, it never changes, and you cannot file a return without it.
HMRC & taxUpdated 27/08/2026
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How Deliveroo works for a rider: what you need to join, how each fee is worked out, the pay floor agreed with the GMB union, when the money arrives, the insurance Deliveroo gives you for free, and the parts that are left to you.
Getting startedUpdated 29/09/2026
Delivering for Uber Eats: the full guide
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