Tax for delivery and courier drivers

Parcels, takeaways, groceries — if you deliver for the apps or as a courier, you're self-employed, and the tax is yours to handle. The good news: your mileage does a lot of the heavy lifting.

Driving for the likes of Amazon Flex, Evri, a courier firm or a food app almost always makes you self-employed. Once you earn more than £1,000 in a tax year you'll need to file a return, paying tax on your profit after costs.

How much tax will you actually pay?

You're taxed on your profit — your income after allowable costs — not on everything you take. For the 2026/27 tax year:

• The first £12,570 is tax-free (your personal allowance).
• 20% income tax on profit between £12,570 and £50,270.
• 6% Class 4 National Insurance on that same slice — Class 2 is treated as paid automatically.
• Above £50,270 it steps up to 40% tax and 2% National Insurance.

A worked example. Say you take £24,000 from delivery work and, after £6,000 of mileage and running costs, your profit is £18,000 — your only income. Nothing on the first £12,570, then 20% tax on the £5,430 above it (£1,086) and 6% Class 4 NI (£326) — about £1,412 for the year.

If you also have an employed job, that salary usually uses your personal allowance first, so more of your self-employed profit is taxed — we work out both sides together. Our how-much-tax guide has the full breakdown.

Your vehicle: usually the biggest claim

You pick one method per vehicle and stick with it:

• Simplified mileage — 55p per mile for the first 10,000 business miles and 25p after. For high-mileage delivery work this is often the simplest and most generous option, and it already covers fuel, servicing and wear.
• Actual costs — fuel, insurance, repairs, servicing and so on, plus capital allowances on the vehicle.

Other costs you can claim

• Courier or "hire and reward" insurance — the cover you need to deliver for work.
• Your phone and data for the delivery apps.
• Parking while making deliveries (not fines).
• Bags, trolleys and equipment, and any uniform.

How to file, step by step

• 1. Register with HMRC for Self Assessment by 5 October after the tax year you started. You'll get a UTR (Unique Taxpayer Reference). Here's how →
• 2. Keep records through the year — what you earned, and receipts for what you spent.
• 3. File your return online by 31 January (or on paper by 31 October). The dates that matter →
• 4. Pay what you owe by 31 January.

Making Tax Digital

Making Tax Digital is already here: since 6 April 2026 it applies if your gross self-employment and property income — your turnover, before expenses — was over £50,000. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028. It means keeping digital records and sending HMRC a short update every quarter — 7 August, 7 November, 7 February and 7 May — on top of your year-end return. We keep the records and file everything for you.

Common questions

Do delivery drivers pay tax? Yes — driving for the apps or as a courier is usually self-employment, so once you earn over £1,000 in a tax year you file a return and pay tax on your profit.

Is it better to claim mileage or actual costs? For high-mileage delivery work the 55p-per-mile simplified rate (first 10,000 miles, 25p after, from April 2026) is often simplest and most generous, and it already covers fuel and wear. You pick one method per vehicle.

How much tax will I pay? No tax on the first £12,570, then 20% tax and 6% Class 4 National Insurance on profit above it. On £18,000 of profit that's about £1,412 for the year.

This guide is general information, not personal tax advice. Figures are for the 2026/27 tax year and can change at each Budget — always confirm the current numbers on GOV.UK or ask us to check your situation.