Delivery driver expenses: what you can claim

The basic rule

GOV.UK says you can only claim allowable expenses for business costs. If something is used for both work and personal life, such as your phone or your car, claim only the work part. Every pound of expenses reduces your profit, and so the Income Tax and National Insurance you pay on it.

Car or van

Mileage rate for cars and vans: 55p a mile for the first 10,000 business miles in 2026/27 (45p in 2025/26), then 25p. Once you use it for a vehicle, you must keep using it for that vehicle. Which is better?

Motorbike or scooter

The mileage rate for motorbikes is 24p a mile, covering fuel, insurance, repairs and the bike itself. Or claim the work share of the real costs. Small bikes use little fuel, so the flat rate often comes out ahead; the Deliveroo calculator has a motorbike example.

Bicycle or e-bike

GOV.UK's flat mileage rates for the self-employed list cars, vans and motorcycles only, so cyclists claim actual costs: repairs and parts, tyres, lights and locks, insurance for delivering, and a bike bought for the work. If that comes to under £1,000 a year, the trading allowance gives a bigger deduction; the Just Eat example shows this.

Costs for every vehicle type

• Phone and mobile data: the work share. GOV.UK lists phone and internet bills as office costs, excluding personal use.
• Delivery bag, phone mount, power bank bought for the work.
• Protective clothing: helmet, hi-vis, waterproofs needed for riding. Everyday clothes don't count (clothing rules).
• Equipment you keep, like a phone bought for the work: an allowable expense under cash basis accounting, or capital allowances under traditional accounting.

What you can't claim

• Personal driving, and travel between home and work.
• Parking and speeding fines, and other penalties.
• Everyday meals and clothes.
• Anything at all, if you use the £1,000 trading allowance instead.

Trading allowance instead of expenses

Instead of adding up costs, you can deduct a flat £1,000 (the trading allowance). It's worth it when your real costs are below £1,000, which is common for cyclists and part-timers. The calculator works out all three options and uses the biggest.

Records to keep

GOV.UK says to keep records of all income and expenses, including receipts and bank statements, for at least 5 years after the 31 January deadline for that tax year. If you use the mileage rate, keep a log of business miles (date, from, to, miles) to back up the claim. Keep your weekly earnings statements from each app too.

Checked against GOV.UK on 31 October 2026. This is general information, not tax advice.