If you deliver parcels for Amazon Flex, drop off takeaways through Uber Eats or Deliveroo, or run routes for DPD as a self-employed courier, every legitimate expense you claim reduces your taxable profit — and therefore your income tax and National Insurance bill. Many gig-economy drivers overpay by hundreds of pounds each year simply because they do not claim everything they are entitled to.
This guide covers every deduction available to self-employed delivery drivers in the UK for the 2026/27 tax year, with a worked example showing exactly how much you could save.
Are You Self-Employed as a Delivery Driver?
Most delivery platforms treat their drivers as self-employed. If you work for Amazon Flex, Uber Eats, Deliveroo, Just Eat, Stuart, or DPD on a contractor basis, you are responsible for your own tax. That means registering for Self Assessment with HMRC, reporting all your delivery income, and filing a tax return each year.
If you earn more than £1,000 from delivery work in a tax year (6 April to 5 April), you must register. The deadline is 5 October following the end of that tax year.
Multi-apping is common — you might run Amazon Flex blocks during the day and switch to Deliveroo in the evening. If all your delivery work is self-employed, you report it as a single self-employment income stream on one tax return. There is no need to register separately for each platform.
Vehicle Costs: Your Largest Deduction
For most delivery drivers, the vehicle is the single biggest running cost. As a sole trader you have two methods to claim it, and you must choose one when you start using a vehicle for business — you cannot switch later for that vehicle.
Simplified Expenses (Mileage Rate)
Multiply your business miles by the HMRC approved mileage rate:
- 45p per mile for the first 10,000 business miles
- 25p per mile for every mile above 10,000
This flat rate covers fuel, insurance, MOT, servicing, tyres, road tax, and depreciation — everything related to the vehicle. You do not need to keep fuel receipts or service invoices; you just need an accurate mileage log.
For most delivery drivers using a reasonably priced car or small van, simplified expenses is the better method. It is straightforward, and the deduction is often higher than actual costs.
Actual Costs
Calculate your total annual vehicle expenses — fuel, insurance, road tax, servicing, repairs, lease payments, depreciation — then multiply by your business-use percentage.
When actual costs work better: If you drive a high-value vehicle with expensive running costs and a very high proportion of business use, actual costs may produce a larger deduction. However, the record-keeping burden is significantly heavier.
For a detailed comparison of both methods, see our guide on actual costs vs the mileage rate for self-employed drivers.
Other Allowable Expenses for Delivery Drivers
Beyond vehicle costs, you can claim a range of expenses that most drivers overlook:
Mobile phone. Navigation apps, platform notifications, and customer contact all run through your phone. Claim the business-use proportion of your monthly bill. If you use your phone roughly 70% for delivery work, deduct 70% of the cost.
Delivery bags and carriers. Insulated bags, thermal carriers, and pizza bags bought for the job are fully deductible business expenses.
Protective clothing and PPE. Hi-vis vests, waterproof jackets bought specifically for work, cycling helmets, and safety boots qualify. Everyday clothing does not — even if you only wear it while delivering.
Phone mount and accessories. A dashboard phone holder, charging cables for your vehicle, and a portable power bank used for work are all claimable.
Parking charges. Business parking at delivery locations is deductible. Parking fines and penalties are never claimable.
Congestion Charge and Clean Air Zones. If your delivery route takes you through London’s Congestion Charge zone or a Clean Air Zone in Birmingham, Bristol, or elsewhere, the daily charge is a legitimate business expense.
Accountancy and bookkeeping fees. The cost of having an accountant prepare your Self Assessment return is an allowable deduction.
Bank charges. Fees on a business bank account or payment processing charges are deductible.
For a full explanation of how the 45p rate works and what it includes, read our breakdown of the HMRC 45p per mile rate.
Worked Example: Full-Time Uber Eats and Amazon Flex Driver
Sarah drives for Uber Eats three evenings a week and picks up Amazon Flex blocks at weekends. Here is what her 2026/27 tax year looks like:
| Item | Amount |
|---|---|
| Total delivery income (Uber Eats + Amazon Flex) | £28,000 |
| Business miles driven | 18,000 |
| Simplified expenses: 10,000 × 45p | £4,500 |
| Simplified expenses: 8,000 × 25p | £2,000 |
| Total mileage deduction | £6,500 |
| Phone (70% business use) | £420 |
| Delivery bags, mount, PPE | £180 |
| Accountant fee | £250 |
| Parking charges | £150 |
| Total expenses | £7,500 |
| Taxable profit | £20,500 |
Without claiming expenses, Sarah would pay income tax and Class 4 NIC on the full £28,000. By claiming £7,500 in legitimate deductions, she reduces her taxable profit to £20,500 — saving roughly £1,500 in income tax alone, plus additional National Insurance savings.
The mileage deduction accounts for almost 87% of her total claim. That is why accurate mileage tracking matters more than anything else. An app like Tripbook records every journey automatically using GPS, so Sarah never misses a mile across her Uber Eats and Amazon Flex shifts.
Making Tax Digital: What Changes from April 2026
Making Tax Digital for Income Tax (MTD ITSA) is now live. The rollout is phased by income:
- April 2026: Self-employed drivers with gross income above £50,000 must comply
- April 2027: Threshold drops to £30,000
- April 2028: Threshold drops to £20,000
If you fall within scope, you must keep digital records using MTD-compatible software and submit quarterly updates to HMRC — not just one annual return. You also file a final year-end declaration through the same software.
HMRC has confirmed a soft-landing period for 2026/27: no penalty points for late quarterly updates in the first year. Late payment penalties still apply, however.
Even if your income sits below the £50,000 threshold right now, building good digital habits pays off. Tripbook already keeps a digital, GPS-verified mileage log that you can export at any time — exactly the kind of record HMRC expects under MTD.
For more detail on the quarterly reporting requirements, see our full guide to Making Tax Digital and mileage tracking.
Keeping Records That Survive an HMRC Enquiry
HMRC can open an enquiry into your Self Assessment return, and you are required to keep supporting records for at least five years after the 31 January submission deadline. For mileage claims, that means a contemporaneous log showing:
- The date of each journey
- Start and end points
- Business purpose (e.g. “Amazon Flex delivery block — depot to route”)
- Miles driven
Paper logbooks work in theory, but delivery drivers often complete dozens of short trips in a single shift. Manually logging each one is impractical and easy to get wrong. A GPS mileage tracker like Tripbook captures every trip automatically, categorises business and personal journeys, and exports a clean summary ready for your tax return or accountant.
Download Tripbook from the App Store and start logging every delivery mile automatically — so you claim every penny you are owed at tax time.
