AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Delivery app riders and drivers are usually treated as self-employed, so the platform does not deduct tax for you: you report the income yourself and often pay it in instalments. The IRS says gig income must be reported even if no 1099 form arrives; in the UK, trading income above the £1,000 trading allowance means registering for Self Assessment. Insurance is the other gap: a personal car or bike policy may not cover delivering for pay, so check the policy before your first shift.
Why app work is different from a job
Many Nigerians abroad pick up delivery shifts in their first months, between jobs or alongside study or a main job. The money lands in your account weekly, which makes it feel like wages. It usually is not. Platforms generally treat couriers as independent contractors, which means no tax is taken at source, no employer pension contribution, and nobody insuring you while you work. Each of those becomes your responsibility.
How the income is taxed
United States
The IRS Gig Economy Tax Center (reviewed 9 July 2026) lists driving for booked rides or deliveries as gig work and says the income must be reported even if you do not receive a 1099-K, 1099-MISC or 1099-NEC, including money paid in cash or through an app. Self-employment tax of 15.3% (12.4% Social Security and 2.9% Medicare) applies once net self-employment earnings reach $400, on top of income tax, according to the IRS self-employment tax page. If you expect to owe $1,000 or more, the IRS says you generally pay estimated tax during the year rather than all at the end, using Form 1040-ES.
United Kingdom
GOV.UK says the first £1,000 of trading income a year is covered by the trading allowance; if your gross trading income is above that, you must register for Self Assessment. You can use the allowance or deduct your actual expenses, not both. For a courier with fuel, phone and bike or car costs, actual expenses are often the better choice once income is meaningful.
Canada and Ireland
The CRA says taxi and ride-sharing drivers must register for GST/HST regardless of income, while other small suppliers can wait until taxable supplies pass $30,000; check which side your platform puts you on. In Ireland, Revenue says self-employed PRSI Class S is 4.35% of income from 1 October 2026, with a minimum of €650, where income is at least €5,000 a year.
Records that make tax season bearable
- Download weekly or monthly earnings statements from each app and keep them; app histories are sometimes trimmed.
- Log mileage or hours worked, with dates, if you plan to claim vehicle costs.
- Keep receipts for fuel, repairs, phone plan, insulated bags, helmets and parking.
- Put aside a share of every payout for tax in a separate pot so the bill is not a shock.
- Note any tips paid in cash; they are income too.
Worked example (US)
Example: Emeka earns $18,000 from delivery apps in a year and has $5,000 of deductible costs, so his net profit is $13,000. At 15.3%, self-employment tax on $13,000 would be $1,989; the IRS calculation applies the rate to a slightly reduced base, so his actual figure is a little lower. That is before income tax. If he had set aside nothing, the bill in April would arrive in one lump; paying estimated tax each quarter spreads it.
The insurance gap
This is what riders most often miss. A standard motor policy lists the uses it covers on the certificate or schedule, often social, domestic and commuting. Delivering food or parcels for payment may be a separate use the insurer has to agree to. If you crash while working without the right cover, the insurer may refuse the claim, leaving you to pay for damage and injury to others yourself. What to check:
- Read your certificate's "use" section, then ask your insurer in writing whether app delivery is covered.
- Read the platform's own terms: some provide cover only while you are carrying an order, and only for certain risks.
- Check whether you are covered between orders, while waiting for the next job.
- If you cycle, ask about personal accident and third-party liability cover; most countries do not require cycle insurance, but a claim against you can still be large.
- Think about income protection: as a contractor you usually get no sick pay if you are injured.
Keep written answers from your insurer and the platform with your records. If you switch vehicles, platforms or cities, check the cover again rather than assuming it carries over.
Gig work also counts as self-employment when you apply for credit or a tenancy; lenders will want tax records rather than app screenshots, as explained in proof of income as a self-employed newcomer.
Where Pryme fits
A separate pot for tax is easier when your earnings land in one place and you can see them by currency. Pryme's multicurrency account keeps dollars, pounds or euros as they arrive, and the Personal Assistant can prepare reminders for quarterly payments; nothing moves without your approval. If you send part of your earnings home, Send shows the rate and the fee before you approve.
Questions people ask
Do I pay tax on Uber Eats or Deliveroo income?
Usually yes, as self-employed income. In the UK, gross trading income above £1,000 means registering for Self Assessment; in the US it must be reported even without a 1099.
Does my car insurance cover food delivery?
Not necessarily. Check the use section of your certificate and ask your insurer in writing before you start.
Can I do delivery work on a student or work visa?
It depends on the visa. Many limit or forbid self-employment. Check your own visa conditions first.
What expenses can a delivery rider claim?
Typically fuel or mileage, repairs, phone costs and equipment used for the work, with receipts. Rules differ by country.
Sources
- IRS: Gig Economy Tax Center (reviewed 9 Jul 2026) · accessed Oct 2026
- IRS: Self-employment tax (27 Jun 2026) · accessed Oct 2026
- IRS: Estimated taxes (reviewed 25 Sep 2026) · accessed Oct 2026
- GOV.UK: Tax-free allowances on property and trading income · accessed Oct 2026
- CRA: When to register for and start charging the GST/HST (modified 16 Jun 2026) · accessed Oct 2026
- Revenue: PRSI for the self-employed (15 Oct 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.