When you work as a self-employed delivery driver, you pay tax on your profit, not on everything you earn. Your profit is the money you make minus the costs of doing the job. These costs are called allowable expenses, and claiming them properly is one of the easiest ways to keep more of your pay.
Lots of new drivers miss out because they are not sure what counts. This guide explains, in plain English, which self-employed driver expenses you can claim, which ones you cannot, and how to keep good records without the stress.
Why claiming expenses matters
Here is a simple example. Say you earn £30,000 in a tax year and spend £8,000 on costs for the job. If you claim those costs, you only pay tax and National Insurance on £22,000. If you forget to claim them, you pay tax on the full £30,000. That is a lot of money to lose just because a receipt went in the bin.
If you are new to working for yourself, our guide to tax and Self Assessment for parcel delivery jobs explains how registering with HMRC and filling in your tax return works.
The golden rule: is it “wholly and exclusively” for work?
HMRC has one main test. A cost can usually be claimed if you spend it wholly and exclusively for your work. In simple terms, you bought it because you needed it to do the job.
If something is used for both work and personal life, such as your phone or your van, you can usually only claim the work part. For example, if you use your phone for work about 70% of the time, you can claim about 70% of the bill.
Self-employed driver expenses at a glance
The table below shows the most common costs for multi-drop and courier drivers.
| Expense | Can you claim it? | Things to know |
|---|---|---|
| Fuel | Yes | Only for work trips. Not if you use the mileage rate. |
| Van insurance | Yes | Includes goods in transit and public liability cover. |
| Repairs, servicing and MOT | Yes | Not if you use the mileage rate. |
| Vehicle tax and breakdown cover | Yes | Not if you use the mileage rate. |
| Van hire or rental | Yes | Only the share used for work. |
| Parking for deliveries | Yes | Can be added on top of the mileage rate. |
| Tolls and congestion charges | Yes | Only for work trips. |
| Parking tickets and fines | No | Penalties can never be claimed. |
| Work share of your phone bill | Yes | Claim the business part only. |
| Hi-vis, safety boots and gloves | Yes | Must be protective clothing for the job. |
| Everyday clothes and trainers | No | Not allowed, even if you only wear them at work. |
| Equipment (sack truck, phone mount, delivery bags) | Yes | Must be used for work. |
| Accountant or bookkeeping fees | Yes | Includes tax return software. |
| Travel from home to your usual workplace | Usually no | HMRC treats this as normal commuting. |
| Lunch on a normal working day | No | Food is only claimable on some overnight work trips. |
Van and vehicle costs: two ways to claim
Your van will probably be your highest cost. You have two choices for how to claim it.
Option 1: Actual costs
You add up what you really spent on running the van for work. This includes fuel, insurance, repairs, servicing, vehicle tax and breakdown cover. If you also use the van for personal trips, you only claim the work share.
This option often suits drivers who do lots of miles in an older or thirsty van, or who pay a lot for insurance and repairs.
Option 2: Simplified expenses (the mileage rate)
Instead of keeping every fuel and repair receipt, you can claim a flat rate for each business mile you drive. For the 2026 to 2027 tax year, the rates are:
| Business miles in the tax year | Rate per mile |
|---|---|
| First 10,000 miles | 55p |
| Every mile after 10,000 | 25p |
So if you drive 12,000 business miles, you could claim £5,500 for the first 10,000 miles and £500 for the next 2,000. That makes £6,000 in total.
A few rules to remember:
- If you use the mileage rate, you cannot also claim fuel, insurance, repairs or vehicle tax for that van.
- You can still claim parking and tolls on top.
- Once you choose the mileage rate for a van, you must keep using it for as long as you use that van for work.
Whichever way you choose, you will need a mileage log. Write down the date, where you went and how many miles you drove for work.
Phones, parking, tolls and work clothing
Smaller costs add up quickly over a year. Your phone, parking, tolls and protective clothing can all count, as long as you follow the rules.
For example, hi-vis vests and safety boots can be claimed because they protect you at work. A normal hoodie cannot, even if it only ever gets worn on shift. For a closer look at each of these, read our guide on whether you can claim phone bills, parking, tolls and work clothing.
Insurance
Insurance is a must for courier work, and the cost can be claimed as a business expense. Most drivers need:
- Hire and reward van insurance, which covers you when carrying goods for payment
- Goods in transit cover, which protects the parcels you carry
- Public liability insurance, which covers you if someone is hurt or their property is damaged
Not sure which cover you need? Our guide to insurance options for gig delivery drivers explains the different types.
What you cannot claim
It is just as important to know what is not allowed. HMRC can ask you to pay back tax, plus extra charges, if you claim things you should not. Do not claim:
- Parking tickets, speeding fines or other penalties
- Personal trips in your van
- Your normal trip from home to your usual place of work
- Everyday clothes, even if you wear them for work
- Meals on a normal working day
If you are unsure about a cost, the safest step is to check HMRC’s guidance or ask an accountant.
How to keep good records
You do not need fancy software to stay on top of things. A notebook, a spreadsheet or a free app all work fine. The key is to be consistent.
- Keep every receipt. Snap a photo on your phone straight away, as paper receipts fade.
- Log your miles daily. Note the date, route and miles for work.
- Use a separate bank account. Keeping work money apart makes everything much clearer.
- Update your records weekly. Ten minutes a week beats a panic in January.
- Keep records for at least five years after the 31 January deadline for that tax year.
For the full official list of what you can and cannot claim for your vehicle and travel, see the GOV.UK guide to car, van and travel expenses for the self-employed.
Start your self-employed driving career
Claiming your expenses properly means more money in your pocket at the end of the year. It is a simple habit that makes a big difference.
At Skilled Solutions, we work with trusted carriers like Amazon Logistics and DPD across Essex, Kent, London and West Sussex. We support drivers from their first application right through to their first delivery, and we offer van rental assistance to help you get started without a big upfront cost.
Ready to get on the road? Explore our self-employed courier jobs and apply today.
This guide is for general information only and is not tax advice. Tax rules can change, so always check the latest HMRC guidance or speak to an accountant about your own situation.
