Tax Rebates for Delivery Drivers and Couriers

Delivery drivers and couriers cover a lot of miles in their own vehicles, and many pay more tax than they need to or miss out on relief they are owed. Whether you are self-employed or employed, this guide explains what delivery drivers can claim.

Employed or self-employed?

Most gig economy couriers and many delivery drivers are self-employed, which means you claim your costs as business expenses through Self Assessment. If you are employed and taxed through PAYE, you instead claim tax relief on costs your employer does not reimburse.

What self-employed couriers can claim

Mileage is usually the biggest expense. If you use your own vehicle, you can claim either the simplified flat rate per mile or a proportion of your actual running costs, whichever suits your situation. Other allowable expenses can include your phone, insurance, and equipment used for the work. The more legitimate expenses you record, the lower your taxable profit. Use our self-employed tax calculator to estimate your bill.

What employed drivers can claim

If you are employed and drive your own vehicle between drops or to temporary locations (not your normal commute) and are paid less than HMRC’s approved rate, you can claim mileage relief on the shortfall. If you maintain your own uniform, you may also claim the uniform maintenance allowance.

How far back can I claim?

Employed mileage and uniform claims can usually go back the current tax year plus four previous years. Self-employed expenses are claimed on each year’s tax return.

How to claim

You can claim directly from HMRC, or let TaxPro handle it on a no win, no fee basis. We work out your mileage and other costs and deal with HMRC for you.

Frequently asked questions

Should I claim mileage or actual costs?

The simplified flat rate per mile is easier and suits many drivers, but if your running costs are high, actual costs may give more. It is worth comparing.

I drive for a delivery app. Am I self-employed?

Usually yes. Most app based couriers are self-employed and claim their costs as expenses through Self Assessment.

Can employed multi-drop drivers claim?

If you use your own vehicle for work travel that is not your normal commute and are paid under the approved rate, you can usually claim relief on the shortfall.

How long does it take?

For employed claims, refunds usually come through in around 10 days once submitted, with the whole process often taking 8 to 10 weeks.

Delivery drivers, check what you are owed

If you cover the miles, you may be owed relief or paying more tax than you need to.

Start your claim with TaxPro and we will work out everything you are entitled to, on a no win, no fee basis.

Related: browse all our tax rebates by job to find your trade.