Tax Guide for Delivery Drivers: Deliveroo, Amazon Flex, DPD

The Accounted Business Team·27 January 2026·5 min read

Delivering Food and Parcels? You Still Need to Sort Your Tax

If you work as a delivery driver for Deliveroo, Uber Eats, Just Eat, Amazon Flex, DPD, Evri, or any other platform, you are almost certainly self-employed. That means HMRC expects you to register as a sole trader, keep records, and file a Self Assessment tax return each year.

Many delivery drivers do not realise they need to do this, or they do not know what expenses they can claim. This guide sets it out plainly for the 2025/26 tax year.

Confirming Your Self-Employment Status

Most delivery platforms treat drivers as self-employed independent contractors. You log on when you want, choose which deliveries to accept, use your own vehicle, and are paid per delivery rather than receiving a salary. This means you need to register as self-employed, keep records, file a Self Assessment return by 31 January, and pay Income Tax and National Insurance on your profits.

Your Biggest Expense: Mileage

For most delivery drivers, vehicle costs are the largest expense.

Car and Van Drivers

Option 1: HMRC mileage rates — 45p per mile for the first 10,000 business miles, 25p after that. This covers everything: fuel, insurance, repairs, depreciation, road tax.

Option 2: Actual costs — fuel, insurance, road tax, MOT, servicing, repairs, tyres, finance interest, and breakdown cover. If you use the vehicle for personal journeys, calculate the business-use percentage and claim only that proportion.

Many delivery drivers do high mileage. If you do 20,000+ business miles, the mileage rate can still work well because the first 10,000 at 45p gives a solid deduction. Once you choose a method for a vehicle, you must stick with it.

Motorcycle, Scooter, and Bicycle Riders

The HMRC motorcycle mileage rate is 24p per mile. Cyclists have no official rate but can claim the cost of purchasing and maintaining the bicycle (adjusted for business-use proportion), including repairs, tyres, and accessories. E-bikes follow the same bicycle rules.

Keeping a Mileage Log

Record the date, start/end mileage, and purpose of each journey. A simple notebook, a mileage app, or your platform's distance records all work. Every mile driven while working counts — including the journey from home to your first pickup and from your last delivery back home, provided you do not have a single fixed base.

Other Expenses You Can Claim

Phone Costs

Your phone is essential for the app, navigation, and customer communication. Claim a reasonable proportion of the cost, or the full cost of a dedicated work phone. Car phone mounts and charging cables count too.

Thermal Bags and Equipment

Insulated bags, hot boxes, phone mounts, high-visibility clothing, waterproof gear, and delivery backpacks are all claimable.

Parking Costs

Legitimate parking fees while making deliveries are claimable.

Parking Fines: NOT Claimable

Parking fines, speeding tickets, and penalty charges are never claimable — HMRC does not allow penalties for breaking the law, even if received while working. However, the standard London Congestion Charge or ULEZ charge itself is claimable for business journeys. A penalty for not paying it is not.

Tips and Gratuities

Tips — whether through the app or cash — are taxable income and must be declared. In-app tips appear in your earnings statements. For cash tips, keep a record of approximate amounts and dates. Under-declaring income is tax evasion, and HMRC does investigate gig economy workers.

Food and Drink

Generally not claimable. HMRC considers food a personal expense — you would eat whether working or not. The exception is if you are working away from your normal area on a temporary basis.

Insurance

Hire-and-reward insurance, public liability insurance, and food delivery-specific policies are claimable. If your policy covers both personal and business use, claim only the business proportion. Standard car insurance may not cover delivery driving, so check you have the right cover.

The £1,000 Trading Allowance

If your total self-employment income is £1,000 or less, you do not need to register or pay tax. Above £1,000, you can use the trading allowance as a flat £1,000 deduction instead of itemised expenses — but this is unlikely to beat your actual expenses given the mileage involved.

How Much Tax Will You Pay?

Income Tax: 0% on the first £12,570, 20% from £12,571 to £50,270, 40% above that
Class 2 NI: £3.45 per week if profits exceed £6,725
Class 4 NI: 6% on profits between £12,570 and £50,270, 2% above that

Your taxable profit is total income minus allowable expenses.

Record-Keeping

Platform earnings statements — download or screenshot them regularly, as platforms can delete historical data
Receipts — fuel, equipment, insurance, phone bills
Mileage log — date, journey details, business miles
Bank statements — especially where platforms pay into your account
Tips record — cash tips with approximate amounts and dates

Keep everything for at least five years after the filing deadline.

Multiple Platforms, One Tax Return

If you work for Deliveroo, Uber Eats, and Amazon Flex in the same tax year, all that income goes on one Self Assessment return. Add up earnings across all platforms, deduct total expenses, and that gives you your taxable profit. Accounted can pull together your earnings and expenses in one place, and Penny categorises everything so you can see where you stand.

Do Not Leave Your Tax to the Last Minute

Register with HMRC, keep your records, and claim every expense you are entitled to — it makes a real difference to your take-home pay. If you want a simple way to stay on top of it all, start your free trial with Accounted today. Let Penny sort the numbers while you focus on the deliveries.

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