Tax Advice for Self Employed Amazon Flex Drivers

How Amazon Flex Works for Self Employed Drivers

Online shopping has never been simpler and with Amazon Prime members topping 8 million in the UK it is easy to see why there is a growing demand for drivers to sign up to their Amazon Flex Scheme. The Amazon Flex Scheme is open to self employed drivers who have their own vehicles and a mobile phone.

What is Amazon Flex?

Much like Uber, drivers are notified of Amazon packages that need delivering via an app where the driver can opt to pick up a Job from Amazon.

How to Become Self Employed

If you would like to become an Amazon Flex driver, then you must be self employed. When you are self employed you are responsible for your own taxes and national insurance (unlike if you were employed in a job and issued with a payslip each month showing your pay and deductions).

The simplest way to register as Self Employed is to visit the HMRC website and register online. The process can take 10 days to complete upon which HMRC will post you a UTR number (Unique Tax Payers Reference). Keep this safe as you will need this code to file your Self Assessment Tax Return.

Register with HMRC for Self Employment Online

What is a UTR number

From this point you must then:

  • Keep a list and receipts of all your income and expenses;
  • Complete a Self Assessment Tax Return by 31 January each year summarising your business income and expenses;
  • Pay any Tax due by 31 January each year (and payments on account by 31 January and 31 July each year).

What are Payments On Account

Your tax return submitted by 31 January covers the previous tax year (a tax year runs from 6 April to 5 April). So for example, your tax return due by 31 January 2018 details your earnings between 6 April 2016 to 5 April 2017 and this will detail your income from your Amazon Flex delivery work as well as any other earnings you may have (such as from other delivery work, rental income, bank interest or dividends).

Here is a sample Tax Return and Sample Self Employment Section which would need to be included for Self Assessment.  These are samples, you will need to submit your own Tax Return online.

Tax Return Sample

Self Employment Tax Return Section Sample

When Should You Register with HMRC as a Self Employed Amazon Flex Driver?

You must register with HMRC as self employed as soon as possible after starting work as an Amazon Flex Driver but HMRC rules are that you must register by 5 October in your business’ second tax year.

Next: How Much Tax Do You Pay?

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Anita is a Chartered Accountant, turned blogger, with over 10 years experience in accounting, tax and operations for Small Businesses. Anita is on a mission to make finance simple for the self employed, so they can stop stressing about their business finances and focus on building profitable businesses which will give them the lifestyle they dream of.