Whether you deliver parcels for Amazon Flex, food for Deliveroo, or packages for DPD, you could be missing out on a delivery driver tax rebate worth hundreds of pounds.
Delivery driver tax rebate claims allow you to get tax relief on mileage, phone costs, vehicle maintenance, and other work-related expenses, but most drivers never claim.
The delivery driver tax rebate rules differ depending on whether you are self-employed or employed through PAYE.
Getting it wrong can mean missing out on your delivery driver tax rebate, or worse, facing penalties from HMRC for failing to file correctly.
Thousands of UK delivery drivers are owed a delivery driver tax rebate for expenses they have already paid.
If you use your own vehicle, phone, or equipment for work, you could claim tax back for the current year and backdate your delivery driver tax rebate claim for up to four previous tax years.
This guide explains exactly what delivery drivers can claim, how to submit your claim, and how much you could get back.
Delivery Driver Tax Rebate: Key Takeaways
- Most delivery drivers are classed as self-employed and must register with HMRC if they earn over £1,000 per year
- Self-employed drivers claim expenses through their Self Assessment tax return, reducing their taxable profit
- PAYE employed drivers can claim tax relief on unreimbursed expenses using form P87, online IForm or Self Assessment
- Mileage rates are 45p per mile for the first 10,000 miles and 25p per mile thereafter for cars and vans
- Bicycle couriers can claim 20p per mile, motorcycle riders 24p per mile
- Phone costs, delivery bags, protective clothing, and vehicle maintenance are all claimable
- You can backdate claims for up to four tax years
Delivery Driver Tax Rebate: Employment Status
The first thing to establish is your employment status, because this determines how you claim expenses and how much tax you pay.
Self-Employed Delivery Drivers
If you work for any of the following platforms, you are almost certainly self-employed in the eyes of HMRC:
- Amazon Flex
- Deliveroo
- Uber Eats
- Just Eat (courier)
- Gophr
Self-employed means you are not on a company payroll. No tax is deducted from your earnings before you receive them, and you are responsible for reporting your income and paying your own tax.
If your gross income from delivery work exceeds £1,000 in a tax year (6 April to 5 April), you must register for Self Assessment and file a tax return.
The deadline to register is 5 October following the end of the tax year in which you started.
For example, if you started delivering in January 2026 and earned more than £1,000 by 5 April 2026, you must register by 5 October 2026 and file your 2025/26 tax return by 31 January 2027.
PAYE Employed Delivery Drivers
Some delivery drivers are employed directly by companies and paid through PAYE.
In this case, your employer deducts Income Tax and National Insurance before you receive your pay.
Examples include drivers employed directly by:
- Supermarket delivery services (Tesco, Sainsbury’s, Asda)
- Courier companies where you are on the payroll (not self-employed contractors)
- Pizza chains with employed drivers
If you are employed through PAYE but pay for work-related expenses out of your own pocket without full reimbursement from your employer, you can claim tax relief on those expenses.
The claim method depends on the total amount in that tax year.
Working for Multiple Platforms
Many drivers work across several apps, perhaps Amazon Flex during the day and Deliveroo in the evenings.
If all your delivery work is self-employed, you report it as a single self-employment income stream on one tax return.
You do not need to register separately for each app. HMRC sees all your gig economy income as one self-employed business.
If you have both employed (PAYE) work and self-employed delivery income, you include both on your Self Assessment tax return.
Your PAYE income goes in the employment section, and your self-employed delivery income goes in the self-employment section.
Self-Employed Delivery Driver Tax Rebate Expenses
Self-employed drivers deduct allowable expenses from their income before calculating tax. This reduces your taxable profit and therefore your tax bill.
The general rule is that expenses must be incurred wholly and exclusively for your business.
If you use something for both work and personal purposes, you can only claim the business proportion.
Mileage (Simplified Expenses)
The simplest way to claim vehicle costs is using HMRC’s simplified expenses, also called the flat-rate mileage allowance which uses AMAP rates set by HMRC..
You multiply your business miles by a fixed rate that covers fuel, insurance, repairs, servicing, and depreciation.
AMAP mileage rates:
- Cars and vans: 45p per mile for the first 10,000 business miles, then 25p per mile
- Motorcycles: 24p per mile (all miles)
- Bicycles: 20p per mile (all miles)
For example, if you drive 15,000 business miles in your car during the tax year:
- First 10,000 miles at 45p = £4,500
- Next 5,000 miles at 25p = £1,250
- Total mileage expense = £5,750
This £5,750 is deducted from your self-employed income before tax is calculated.
Important: Business miles include all miles driven while working, from the moment you go online to accept deliveries until you go offline.
They do not include your commute from home to a depot if you start and end there, unless your home is your business base.
Actual Vehicle Costs (Alternative Method)
Instead of simplified mileage, you can claim the actual costs of running your vehicle. This includes:
- Fuel
- Insurance
- Road tax
- MOT and servicing
- Repairs and maintenance
- Breakdown cover
- Tyres
- Vehicle finance interest (not capital repayment)
If you use the vehicle for both business and personal journeys, you must calculate the business percentage based on mileage.
For example, if 70% of your total miles are for deliveries, you can claim 70% of your actual vehicle costs.
Which method is better? You can only choose one method per vehicle.
Once you have claimed capital allowances or actual costs on a vehicle, you cannot switch to simplified mileage for that vehicle in future years.
Simplified mileage can be better for cars because the 45p rate is generous.
Actual costs may be better for electric vehicles with low running costs, or for older vehicles where repair costs exceed what the mileage rate would give you.
Phone Costs
Your phone is essential for accepting orders, navigation, and communicating with customers. You can claim:
- The cost of a phone used solely for work
- A proportion of your phone bill if used for both work and personal
If you have a dedicated work phone, claim the full cost. If you use one phone for everything, estimate the business percentage. Many drivers claim 50-75% depending on their usage.
You can also claim the cost of accessories like phone holders, chargers, and power banks used for work.
Delivery Equipment
Items you need to carry out your work are fully deductible:
- Delivery bags (insulated bags for food delivery)
- Hi-vis jackets and safety gear
- Waterproof clothing for cycling or motorcycling
- Gloves and helmets
- Branded clothing required by the platform
These are claimed at the actual cost paid, so keep your receipts.
Other Allowable Expenses
- Parking fees incurred while making deliveries (not parking fines)
- Toll charges
- Congestion charge (if required for deliveries)
- Bike maintenance and repairs (locks, lights, puncture repairs)
- Accountancy software or apps (including mileage tracking apps)
- Accountant fees for completing your tax return
- A proportion of home costs if you use a room as a business office (simplified: £6 per week or actual costs)
What You Cannot Claim
- Parking fines or speeding tickets
- Food and drink during normal working hours
- Everyday clothing (even if you only wear it for work)
- The cost of travelling from home to a regular workplace
- Anything reimbursed by the platform
PAYE Delivery Driver Tax Rebate Claims
If you are employed and paid through PAYE, you cannot deduct expenses from your income in the same way as self-employed workers. Instead, you claim tax relief on allowable expenses.
Tax relief means HMRC reduces the tax you owe based on what you have spent. You do not get the full expense back—you get relief at your tax rate.
A basic rate taxpayer (20%) claiming £500 of expenses would receive £100 tax relief. A higher rate taxpayer (40%) would receive £200.
Allowable Expenses for PAYE Drivers
You can claim tax relief on expenses that are wholly, exclusively, and necessarily incurred for your job, and not reimbursed by your employer.
- Mileage: If you use your own vehicle for work journeys and your employer does not reimburse you at the full HMRC rate (45p/25p for cars), you can claim the difference. If your employer pays you 30p per mile, you can claim 15p per mile for the first 10,000 miles.
- Uniform and protective clothing: If you must wear a uniform with your employer’s logo or specific protective clothing and you pay for it yourself, you can claim for purchase, cleaning, and repair costs.
- Tools and equipment: Items you must provide yourself to do your job.
How to Claim as a PAYE Employee
Claims under £2,500 per year: Use form P87 or HMRC’s online iForm. You can submit online through your Personal Tax Account or by post.
You will need your employer’s PAYE reference (on your payslip) and records of your expenses.
Claims over £2,500 per year: You must complete a Self Assessment tax return. Register using form SA1, then include your employment expenses in the employment section of your return.
For mileage claims, you must keep a log showing the date, start and end locations, purpose, and miles driven for each journey. HMRC may ask for this evidence.
HMRC’s personal tax account service or their App can be helpful in finding details like your national insurance number and pay and tax figures.
How to Keep Records
Good record-keeping is essential for both self-employed and employed drivers. HMRC can ask for evidence of your expenses, and without records, your claim may be rejected.
What Records to Keep
- Mileage log: Date, start location, end location, purpose of journey, miles driven. Apps like Driversnote, MileIQ, or Untied can track this automatically using your phone’s GPS.
- Receipts: For all expenses where you claim the actual amount (phone, equipment, repairs). Digital photos or scans are acceptable.
- Bank and payment records: Statements showing income from each platform and business expenses paid.
- Platform earnings summaries: Most apps provide an annual summary of your earnings. Download and keep these.
How Long to Keep Records
Keep records for at least five years after the 31 January deadline for the relevant tax year.
As an example for 2025/26 (deadline 31 January 2027), keep records until at least 31 January 2032.
How to Submit Your Delivery Driver Tax Rebate
Self-Employed Drivers
You claim expenses through your annual Self Assessment tax return:
- Register for Self Assessment if you have not already (by 5 October following the end of your first tax year of self-employment)
- Keep records throughout the year using a spreadsheet, app, or accounting software
- Complete form SA103 (self-employment supplementary pages) as part of your tax return
- Submit online by 31 January following the end of the tax year
- Pay any tax due by the same deadline
The self-employment pages ask for your total income and total expenses.
You do not need to submit receipts with your return, but you must keep them in case HMRC asks.
If your tax bill exceeds £1,000, you may also need to make payments on account (advance payments) in January and July towards the following year’s bill.
PAYE Employed Drivers
For expenses under £2,500:
- Gather evidence: mileage logs, receipts, payslips showing any reimbursement
- Complete form P87 and post to HMRC
- Online through your Personal Tax Account
- Submit to HMRC with copies of your evidence (online or by post)
- Wait for processing: typically 8-12 weeks for postal claims, faster online
If successful, HMRC will either adjust your tax code to give relief in future pay packets (for current year claims) or send a refund by cheque or bank transfer (for previous year claims).
How Much Could You Claim Back?
The value of your claim depends on your mileage, expenses, and tax rate.
Example 1: Self-Employed Food Courier (Car)
- Annual delivery miles: 12,000
- Mileage claim: (10,000 × 45p) + (2,000 × 25p) = £5,000
- Phone (50% business use): £300
- Delivery bag: £30
- Waterproof jacket: £50
- Mileage app subscription: £35
Total expenses: £5,415
If this driver earned £18,000 gross and had £5,415 in expenses, their taxable profit would be £12,585.
They would pay no Income Tax (below the £12,570 personal allowance) and minimal National Insurance.
Without claiming expenses, they would pay tax on the full £18,000, resulting in a significantly higher tax bill.
Example 2: Self-Employed Bicycle Courier
- Annual delivery miles: 3,000
- Mileage claim: 3,000 × 20p = £600
- Phone (70% business use): £420
- Bike maintenance: £200
- Delivery bag: £40
- Waterproof clothing: £80
Total expenses: £1,340
Example 3: PAYE Driver Not Fully Reimbursed for Mileage
- Annual business miles: 8,000
- Employer pays: 25p per mile = £2,000
- HMRC rate: 45p per mile = £3,600
- Shortfall: £1,600
Tax relief at 20% = £320 refund
Tax relief at 40% = £640 refund
Common Mistakes to Avoid
Not registering for Self Assessment: If you earn over £1,000 from self-employed delivery work, you must register. HMRC is actively writing to delivery drivers identified through platform data. Failing to register can result in penalties.
Missing the deadline: Self Assessment returns are due by 31 January. Late filing triggers an automatic £100 penalty, with further penalties for continued delay.
Claiming personal expenses: Only claim what is genuinely for business. HMRC can check, and incorrect claims may result in penalties plus interest.
Not keeping records: Without evidence, claims can be rejected. Get into the habit of logging miles and keeping receipts from day one.
Using the wrong mileage rate: Different rates apply to cars (45p/25p), motorcycles (24p), and bicycles (20p). Using the wrong rate will result in an incorrect claim.
Forgetting to claim: Some drivers simply do not know they can claim expenses, or assume it is too complicated. The claims process is quite straightforward, and the savings can be substantial.
Backdating Delivery Driver Tax Rebate Claims
Yes. You can claim for the previous four tax years. As of the 2025/26 tax year, you can still claim back to 2021/22.
For self-employed drivers, this means amending previous tax returns or submitting returns for years you missed.
For PAYE employees, you can submit a P87 or IForm covering multiple years or amend previous Self Assessment returns.
If you have been delivering for several years without claiming expenses, the backdated amount could be significant.
A driver with 10,000 annual miles over four years could have £18,000 in unclaimed mileage expenses alone.
What is Making Tax Digital and does it affect delivery drivers?
Making Tax Digital (MTD) for Income Tax is a new HMRC requirement that will affect self-employed delivery drivers from April 2026 onwards, depending on your income level.
The timeline:
- April 2026: Self-employed individuals with gross income over £50,000 must use MTD-compatible software and submit quarterly updates to HMRC
- April 2027: Threshold drops to £30,000
- April 2028: Threshold drops to £20,000
If your total self-employed income (before expenses) exceeds these thresholds, you will need to keep digital records using compatible software and submit a summary of your income and expenses to HMRC every three months, instead of just filing one annual tax return.
For most part-time delivery drivers earning under £20,000, MTD will not apply until at least April 2028.
If delivery driving is your main income and you earn above the thresholds, you should start using MTD-compatible accounting software now to prepare.
The good news is that apps like FreeAgent, QuickBooks, and Xero are already MTD-compatible, so if you start using them now for expense tracking, you will be ready when the requirements apply to you.
For more details, see our full guide to Making Tax Digital for the self-employed:
Delivery Driver Tax Rebate FAQs
Do I need to register as self-employed if delivery driving is just a side hustle?
Yes, if your gross self-employed income exceeds £1,000 in a tax year. This applies even if you have a full-time PAYE job. You would complete a Self Assessment return declaring both your employed income and your self-employed delivery income.
Can I claim mileage if I use an electric vehicle?
Yes. The same mileage rates apply to electric cars and vans (45p/25p). The rate covers all running costs including electricity.
What if my employer does not reimburse any mileage?
You can claim the full HMRC rate (45p per mile up to 10,000 miles, then 25p) via form P87 or Self Assessment. You will need evidence that you use your own vehicle for work journeys and are not reimbursed.
Can I claim for meals while working?
Generally no. Meals during a normal working day are considered personal expenses. There are limited exceptions for overnight stays or travel to temporary workplaces outside your normal area, but these rarely apply to local delivery drivers.
What happens if I do not file a tax return?
HMRC may estimate your income and send you a tax bill, which is often higher than it should be because they do not know your expenses.
You will also face late filing penalties (starting at £100) and interest on any unpaid tax. In serious cases, HMRC can open an investigation.
Do I pay National Insurance as a self-employed delivery driver?
Yes, if your profits exceed certain thresholds. For 2025/26:
- Class 2 NICs: £3.45 per week if profits exceed £6,725
- Class 4 NICs: 6% on profits between £12,570 and £50,270, then 2% on profits above £50,270
Claiming expenses reduces your profit, which can reduce or eliminate your National Insurance bill as well as your Income Tax.
Can I use accounting software to track my expenses?
Yes, and it is highly recommended. Apps like FreeAgent, QuickBooks, Xero, or dedicated delivery driver apps like Untied can automate mileage tracking, categorise expenses, and generate the figures you need for your tax return. The cost of the software is itself a deductible expense.
