TaxBuddieSign inCreate AccountCurrent UK guide · 2026/27 tax year
Delivery Driver Tax UK: 2026/27 Guide
Delivery work can create self-employed income, vehicle costs, platform fees and records across several apps. This guide explains the main UK rules to check and the evidence worth keeping.
Reviewed against GOV.UK and HMRC guidance on 26 September 2026.
Do delivery drivers pay tax?
Delivery income is not automatically tax-free. If you work for yourself, Income Tax is generally worked out on taxable profit: business income less allowable expenses or another permitted deduction such as the trading allowance. National Insurance may also apply.
For 2026/27 the standard Personal Allowance is £12,570, but it covers your total taxable income, not each job separately. PAYE wages, pensions and other income can use some or all of it, and Scottish Income Tax bands differ. Earning under the Personal Allowance does not by itself remove a requirement to register or file.
Two thresholds answer different questions. The £1,000 trading allowance is relevant to whether many sole traders must tell HMRC. The £12,570 standard Personal Allowance is relevant to Income Tax across your total taxable income.
Are delivery drivers self-employed?
Many app-based couriers operate as sole traders, but employment status depends on the real working arrangement rather than a page label. Check your contract and HMRC’s employment-status guidance if you are unsure. This guide focuses on drivers reporting delivery work as self-employment.
When do you need to tell HMRC?
HMRC says a sole trader who earned more than £1,000 before expenses in the last tax year must send a Self Assessment return, subject to the full rules. If you need a return and have not filed before, you normally tell HMRC by 5 October following the end of that tax year.
The £1,000 test uses combined gross trading income from your trades, not the profit left after costs and not a separate allowance for each delivery platform. Use HMRC’s Self Assessment checker for your circumstances.
What expenses can delivery drivers claim?
An allowable expense must meet the relevant rules and relate to the business. Depending on your method and circumstances, that can include the business portion of vehicle costs, platform or account charges, phone use, delivery equipment, protective clothing, parking, tolls, software and professional costs.
Personal spending is not allowable. Ordinary clothing remains personal even if you wear it only while delivering. Fines and penalties are not allowable. Mixed-use costs, such as a phone contract, need a reasonable business portion.
See the detailed delivery driver expenses guide before categorising costs.
Can delivery drivers claim mileage?
Self-employed drivers may be able to use simplified vehicle expenses for eligible business mileage instead of working out actual running costs. For 2026/27 the flat rates are 55p per mile for the first 10,000 business miles in cars and goods vehicles, 25p after that, and 24p for motorcycles.
You cannot add fuel, insurance, repairs and servicing on top of the simplified vehicle rate because those running costs are what the mileage rate replaces. Parking and some other travel costs can be separate. Once you use the flat rate for a vehicle, HMRC says you must continue while that vehicle remains in the business.
Not every mile recorded by GPS is automatically a business mile. Non-business travel and travel between home and a regular place of work are excluded; unusual or depot-based patterns can be fact-specific. Read the 2026/27 HMRC mileage rates guide and keep journey purpose with your mileage record.
Mileage versus actual vehicle expenses
| Method | What you record | Key caution |
|---|---|---|
| Simplified mileage | Eligible business miles and journey purpose | The flat rate replaces fuel, insurance, repairs, servicing and other vehicle running costs. |
| Actual costs | Vehicle bills, business-use calculation and supporting evidence | Only the business portion is relevant; capital allowance rules may apply. |
Can you claim fuel?
Fuel can form part of actual vehicle costs, subject to business use. It is not an extra deduction on top of simplified mileage for the same vehicle. The same distinction matters for vehicle insurance, repairs and servicing.
Phone costs and delivery equipment
The business portion of phone and data costs may be allowable. Delivery bags, phone mounts and other equipment need to be considered under the normal business-purpose and accounting rules. Keep receipts and explain mixed use.
Self Assessment for delivery drivers
Keep a record of gross income before platform fees, then record fees and other costs separately. A net bank payout can hide both parts. If you work across Uber Eats, Deliveroo, Just Eat, Amazon Flex or other apps, bring all trading income together for the tax year from 6 April to 5 April.
For the 2026/27 tax year, a new filer who needs to register would normally do so by 5 October 2027. The standard online filing and payment deadline is 31 January 2028. Check HMRC’s deadlines page closer to filing and do not wait for a platform summary before organising your own records.
See the step-by-step Self Assessment guide for delivery drivers.
Records delivery drivers should keep
- Gross earnings, tips, incentives, adjustments, fees and net payouts for each platform.
- Shift dates, business journeys, mileage totals and journey purpose.
- Expense dates, suppliers, amounts, business-use shares and receipts or invoices.
- Bank statements and the original platform statements used to reconcile totals.
- Notes explaining corrections, refunds, missing evidence and mixed personal use.
HMRC says business records generally need to be kept for at least five years after the 31 January submission deadline for the relevant tax year.
Working across multiple delivery apps
Do not create a second copy of one mixed-app shift. Keep the actual time and distance once, while recording earnings and fees by source. Reconcile Uber Eats, Deliveroo, Just Eat, Amazon Flex and other statements against bank receipts without treating the net payout as extra income.
Start with the Uber Eats tax guide, Deliveroo tax guide or Amazon Flex tax guide for platform-specific record checks.
Making Tax Digital for delivery drivers
Making Tax Digital for Income Tax is being introduced in stages. HMRC says qualifying sole traders and landlords with qualifying income over £50,000 on their 2024/25 return should have started from 6 April 2026. The threshold is more than £30,000 for a 6 April 2027 start and more than £20,000 for a 6 April 2028 start.
Qualifying income means gross self-employment and property income before expenses. Check HMRC’s current eligibility guidance and compatible-software requirements. TaxBuddie helps organise records and CSV exports; it does not submit quarterly updates or tax returns to HMRC.
Delivery driver tax FAQs
Does a platform reporting my income mean I owe tax?
No. HMRC says platform reporting does not automatically mean tax is due. Your total income, allowable deductions and circumstances decide the result, but platform reports do not replace your own business records.
Can I claim mileage and fuel?
Not as duplicate vehicle-running deductions for the same vehicle. Simplified mileage replaces costs such as fuel, insurance, repairs and servicing. Actual-cost treatment is a different method.
Does TaxBuddie file my return?
No. TaxBuddie provides record keeping and exports. It does not provide personalised tax advice or submit returns or MTD updates.
Official sources
Keep your delivery records organised
Track shifts, GPS mileage, earnings, expenses and receipts in one TaxBuddie account.
Important: This guide provides general information, not personalised tax or financial advice. Tax rules and individual circumstances change. Check the linked GOV.UK guidance or speak to a qualified adviser.