How to Start as a Self-Employed Delivery Driver in the UK

Self-employed delivery driving has exploded in the UK, driven by the growth of e-commerce and on-demand delivery services. Whether you work with Amazon Flex, DPD, Hermes (Evri), Uber Eats, Deliveroo, or run your own courier service, this guide covers the financial side of being a self-employed driver.

Employment Status — Are You Really Self-Employed?

This is the first question to answer. Many delivery drivers work through apps and platforms that classify them as self-employed. However, HMRC may take a different view if the platform controls how, when, and where you work.

Key indicators of genuine self-employment:

• You can choose when to work
• You can decline work
• You provide your own vehicle and equipment
• You can hire a substitute to do deliveries for you
• You bear the financial risk (fuel, vehicle maintenance, insurance)

If you are genuinely self-employed, you are responsible for your own tax through Self Assessment.

Sole Trader or Limited Company?

Sole trader is the standard choice for delivery drivers. Simple, low admin, and appropriate for the income levels.

Registering with HMRC

Register for Self Assessment within three months of starting delivery work. You will receive a UTR (Unique Taxpayer Reference) by post.

Even if your platform sends you a summary of your earnings, you are responsible for reporting your income and paying your tax. The platform does not do this for you.

VAT registration at £90,000 turnover — most individual drivers will not reach this.

Insurance

• Commercial vehicle insurance — your personal car insurance does NOT cover delivery work. You need hire and reward or courier insurance. This is more expensive than personal insurance — budget £1,500–£3,000+ per year.
• Goods in transit insurance — covers the items you are carrying if they are lost or damaged. Some platforms provide this; others do not.
• Public liability — covers damage or injury to third parties
• Personal accident — covers your income if you are injured and cannot drive

Driving without the correct insurance is illegal and invalidates any claims. Make sure your policy specifically covers delivery and courier work.

Claimable Expenses

Vehicle Costs — Two Methods

Mileage method: Claim 45p per mile for the first 10,000 business miles, then 25p per mile. This covers all vehicle running costs — you cannot claim fuel, insurance, or maintenance separately.

Actual costs method: Claim the business proportion of actual vehicle costs — fuel, insurance, maintenance, repairs, road tax, MOT, breakdown cover, parking, tolls, and finance payments. You need to track total miles and business miles to calculate the proportion.

Choose the method that gives you the larger deduction. For high-mileage drivers, actual costs often produce a better result.

Other Expenses

• Phone — essential for navigation and platform apps. The business proportion is deductible.
• Phone mount and accessories — for safe navigation
• Delivery bags — thermal bags, insulated bags
• Parking and congestion charges — for business journeys
• Toll charges
• Cleaning costs — vehicle cleaning and valeting
• Uniform — if required by the platform
• Home office costs — for admin
• Accountancy fees

Accounted tracks your mileage and expenses automatically. Snap fuel receipts and everything is categorised.

Industry-Specific Tax Tips

Mileage Records

If you use the mileage method, keep a contemporaneous mileage log — date, start location, end location, miles driven, purpose. HMRC can ask for this.

If you use the actual costs method, record your total annual mileage and your business mileage separately.

Platform Income

Your platform earnings are your gross income. Any platform fees or commissions deducted before you receive payment are a deductible expense — but your gross income (before fees) is what you report.

Multiple Platforms

If you work across several platforms (e.g., Deliveroo and Amazon Flex), add up all your income. It is all self-employment income reported on one tax return.

Vehicle Purchase

If you buy a vehicle specifically for delivery work, the business proportion of the cost can be claimed through capital allowances. Electric vehicles qualify for a 100% first-year allowance.

Managing Your Income

Delivery driver income can be unpredictable. Good financial habits help:

• Track your true hourly rate — deduct vehicle costs from your earnings to understand what you actually make per hour
• Set aside money for tax — 25–30% of your profit
• Budget for vehicle maintenance — high-mileage driving increases wear and tear
• Build an emergency fund — for vehicle breakdowns, slow periods, or illness

Bookkeeping Tips

• Separate business and personal finances — a business bank account is essential
• Record all platform payments
• Track mileage daily — do not try to reconstruct it at year end
• Keep fuel receipts if using the actual costs method
• Record vehicle maintenance and repair costs
• File your tax return early — do not wait until January

Accounted connects to your bank and uses AI to categorise your transactions. It tracks mileage at HMRC-approved rates and keeps everything ready for Self Assessment.

Key Deadlines

• 31 January — Self Assessment tax return and payment
• 31 July — second payment on account

Getting Started

Self-employed delivery driving offers flexibility and immediate earning potential. Get your insurance sorted, register with HMRC, and track your finances from day one — because the tax bill will come, and you need to be ready for it.

Ready to deliver on your financial obligations? Sign up for Accounted and let Penny track your mileage, expenses, and tax automatically.