Tax Guide for Self-Employed Delivery Drivers in the UK
What expenses can a self-employed delivery driver claim? Mileage, insurance, phone costs — with a worked tax calculation for Uber, Deliveroo, and Amazon Flex.
Tax Essentials
- Typical Income
- £20,000–£35,000
- VAT Threshold Risk
- Low risk
If you deliver for Uber Eats, Deliveroo, Just Eat, Stuart, Amazon Flex, Wolt, or a parcel network like Evri, DPD, or Yodel, you're self-employed — even though you work through an app. Delivery driver tax works the same as any sole trader: you report your income and pay through Self Assessment. The good news: the expenses you can claim reduce your tax bill significantly, especially vehicle costs.
Since January 2024, UK digital platforms report your earnings directly to HMRC under the OECD model reporting rules for digital platforms. HMRC already knows what each platform paid you — so filing accurately matters more than ever.
Tax Essentials
| Field | Details |
|---|---|
| CIS applicable | No |
| Typical income range | £20,000–£35,000 |
| HMRC flat rate expense | None — claim actual expenses or simplified mileage |
| VAT threshold relevant | No (rare for solo drivers; threshold £90,000) |
| Platform reporting | Yes — UK platforms report earnings to HMRC since 2024 |
| Key deadline | 31 January (Self Assessment) |
What You Can Claim
| Expense | Examples | Typical Annual Cost |
|---|---|---|
| Vehicle mileage | 45p/mile car (first 10,000), 25p after; 24p/mile moped; 20p/mile bicycle or e-bike | £1,000–£6,000 |
| Hire and reward insurance | Required for car/moped delivery (Zego, AXA); not needed for bicycles | £1,200–£2,500 |
| Phone & data | Smartphone contract, mobile data (business portion — typically 50–70%) | £150–£350 |
| Delivery equipment | Thermal bag, phone mount, USB charger, hi-vis vest | £50–£150 |
| Protective clothing | Waterproof jacket, cycling gloves, helmet (bicycle/moped riders) | £50–£200 |
| Bike maintenance | Tyres, brake pads, chains, tubes, servicing (bicycle and e-bike riders) | £100–£400 |
| Vehicle maintenance | Servicing, MOT, tyres, repairs (if claiming actual costs instead of mileage) | £500–£1,500 |
| Accounting fees | Tax return preparation, bookkeeping | £100–£300 |
Mileage vs Actual Costs — Which to Choose
This is the biggest decision for delivery drivers. You can claim either mileage or actual costs — not both.
Simplified mileage rate — claim a flat rate per mile that covers fuel, insurance, wear and tear, everything:
- Car/van: 45p per mile (first 10,000), then 25p
- Motorcycle/moped: 24p per mile
- Bicycle/e-bike: 20p per mile
Actual costs — track every receipt for fuel, insurance, repairs, road tax, and claim the business percentage. This can work out better for older vehicles with high running costs.
A car driver doing 15,000 delivery miles gets £5,750 via mileage. A cyclist doing 5,000 miles gets £1,000. Once you pick a method for a vehicle, you generally stick with it.
Insurance: Hire and Reward
If you deliver by car or moped, standard car insurance does not cover paid delivery work. You need hire and reward cover. Providers like Zego and AXA offer flexible pay-per-hour or monthly policies. Annual cover typically runs £1,200–£2,500 depending on age and location. This cost is fully deductible.
Bicycle and e-bike riders don't legally need hire and reward insurance, but specialist cycling insurance (£50–£150/year for theft and damage) is worth considering.
Expenses You Can't Claim
- Food during shifts — your lunch or snacks while waiting for orders aren't deductible, even if you eat between deliveries
- Fines and penalties — speeding tickets, parking fines, red light fines
- Normal clothing — jeans, trainers, and hoodies don't count. Only specialist protective gear qualifies (waterproofs, hi-vis, helmets)
- Home-to-first-pickup travel — HMRC treats this as commuting, not a business journey
- Personal phone use — only the business portion of your phone bill is deductible
Example: How Much Tax Does a Delivery Driver Pay?
Alex drives for Uber Eats and Deliveroo by car. Here's his 2025/26 tax year:
| Item | Amount |
|---|---|
| Platform income (gross) | £28,000 |
| Mileage (15,000 miles) | −£5,750 |
| Phone (business portion) | −£200 |
| Delivery gear | −£100 |
| Accounting fees | −£150 |
| Taxable profit | £21,800 |
| Income Tax (after £12,570 personal allowance) | £1,846 |
| Class 2 NI (profits ≥ £6,845 SPT — credits treated as paid) | £0 |
| Class 4 NI (6% on £12,570–£50,270) | £554 |
| Total tax + NI due | £2,400 |
Note: Alex uses the mileage method, so insurance, fuel, and vehicle costs are already covered by the 45p/25p rate — he can't claim them separately. Class 2 NI is no longer charged for 2025/26 when profits sit above the Small Profits Threshold (£6,845) — National Insurance credits are awarded automatically.
Without claiming mileage and expenses, his tax + NI on £28,000 would be around £4,012. The mileage deduction alone saves Alex £1,612.
Record Keeping Tips
Good records are essential — see our full guide on what records to keep for the basics. For delivery drivers specifically:
- Screenshot your platform earnings weekly — Uber Eats, Deliveroo, and Amazon Flex show earnings in-app, but layouts change and data can be hard to export later. Screenshot or download your weekly summary
- Log every delivery mile — use a mileage tracking app (many are free) that records trips automatically via GPS. HMRC expects a mileage log with dates, routes, and distances
- Save hire and reward insurance documents — annual or monthly policy confirmations are your proof of this large deduction
- Keep platform annual statements — each platform sends a yearly earnings summary (usually in January). Download and store these — they match what HMRC receives
- Separate personal and business spending — a dedicated bank account or card for fuel, insurance, and gear makes tax time much simpler
Key Deadlines
| Deadline | What |
|---|---|
| 5 April | Tax year ends — finalise your income and expense records |
| 5 October | Register for Self Assessment (if your first year) |
| 31 January | File Self Assessment and pay any tax owed |
| 31 July | Second payment on account (if applicable) |
If you earn under £1,000 total from all self-employed work, you don't need to register or file. Above that, you need to register with HMRC.
Frequently Asked Questions
How much tax does a self-employed delivery driver pay?
A car-based delivery driver earning £28,000 with 15,000 business miles claimed at the HMRC mileage rate pays roughly £1,846 in Income Tax plus £554 in Class 4 National Insurance for the 2025/26 tax year. Class 2 NI is £0 because profits sit above the £6,845 Small Profits Threshold. Expenses cut the bill significantly — without claiming mileage, the same driver would pay over £4,000.
Do I need to declare Uber Eats or Deliveroo earnings on Self Assessment?
Yes — if your total self-employed income exceeds £1,000 in the 2025/26 tax year, you must register for Self Assessment and declare it. Since January 2024, UK platforms including Uber Eats, Deliveroo, Just Eat, and Amazon Flex report driver earnings directly to HMRC under the OECD digital platform reporting rules, so undeclared income is easy for HMRC to spot.
Can I claim mileage to deliveries on my tax return?
Yes — you can claim 45p per mile for the first 10,000 business miles by car (then 25p), 24p per mile by motorcycle or moped, and 20p per mile by bicycle or e-bike for 2025/26. This covers fuel, insurance, and wear and tear. The journey from your home to your first pickup counts as commuting and isn't claimable.
Do I need hire and reward insurance to deliver food by car or moped?
Yes — standard car or moped insurance doesn't cover paid delivery work, so you need hire and reward cover before you start. Providers like Zego and AXA offer pay-as-you-go or monthly policies, typically £1,200–£2,500 a year. The premium is a fully allowable business expense on your Self Assessment.
Do delivery drivers need to charge VAT?
Most don't — you only register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period (2025/26 threshold). Few delivery drivers reach this, even working full-time. If you do approach the threshold, register within 30 days. Platforms like Uber handle their own service-fee VAT separately from your earnings.
This guide is for informational purposes only and does not constitute tax, legal, or financial advice. Tax rules change frequently. Always verify current requirements on GOV.UK or consult a qualified accountant for your specific situation.
Official Sources
- Expenses if you're self-employed — GOV.UK
- Simplified expenses for vehicles — GOV.UK
- Self-employed National Insurance rates — GOV.UK
- Tax help for hustles: delivery driving — HMRC
- Register for Self Assessment — GOV.UK