Bookkeeping and Making Tax Digital (MTD) for self-employed delivery drivers and couriers

Your miles, your payouts and what the apps tell HMRC

For most delivery drivers the vehicle is the biggest cost by a long way. It’s also where we see the most mistakes, along with income figures that don’t match what the apps have paid.

Mileage or actual costs. You can claim a flat rate for every business mile, which covers fuel, insurance, servicing, tyres and wear and tear. Or you can claim the business share of what you really spend running the vehicle, plus capital allowances on the vehicle itself. You choose for each vehicle. Once you’ve used the flat rate for a vehicle, you keep using it for as long as it’s in your business, and you can’t move to the flat rate for a vehicle you’ve already claimed capital allowances on.

High mileage. At 250 business miles a week, you’d reach 10,000 miles in 40 weeks, and the car and van rate drops to 25p after that. If your van is thirsty or expensive to run, actual costs can come out ahead. The choice sticks, so ask us before your first tax return.

Which miles count. The round itself, driving between restaurants and customers, and setting off from home when your business is run from home usually all count. The drive to a depot or delivery station you go to every day is less clear cut, so ask us if that’s you. Personal trips in between don’t count.

Delivering by bike. HMRC’s flat rates are for cars, vans and motorbikes. On a pedal bike or e-bike, you claim what you actually spend instead, like the bike, repairs, tyres and lights. You may see 20p a mile quoted for bikes, but that’s a rate employers can pay their staff.

Your payouts are your income. If you deliver through apps or depots such as Amazon Flex, Evri, DPD, Deliveroo, Uber Eats or Just Eat, keep every pay statement. What you earned for the work, including tips and any bonuses, is your income. Check each statement for anything taken off before you’re paid, such as a hire or equipment charge. If there is, record the amount before the charge as income and the charge as an expense, so your turnover is right.

The apps tell HMRC. Since 1 January 2024, digital platforms have had to collect details of the people who earn through them and report what they paid to HMRC each year. The first reports went in by 31 January 2025, and gov.uk gives delivering food as an example. The small-seller exemption only covers selling goods, not services like delivery. The platform must give you a copy of what it reports. That doesn’t mean you owe tax, but HMRC can see what you were paid, so make sure your own figures add up. Selling goods or services on a digital platform (gov.uk)

Read more about cars, vans and mileage, simplified expenses and capital allowances.

Flat mileage rates for 2026/27

Vehicle	Per mile
Car or van, first 10,000 business miles	55p
Car or van, every mile after that	25p
Motorbike, any number of miles	24p

If you claim mileage for a vehicle, you can’t also claim its fuel, insurance or repairs. Parking and tolls on business journeys can go in on top. Simplified expenses for vehicles (gov.uk)

A full-time year in a car

12,000 business miles	Claim
First 10,000 miles at 55p	£5,500
Next 2,000 miles at 25p	£500
Mileage claim for the year	£6,000

Actual costs would only beat this if the business share of fuel, insurance, repairs and capital allowances came to more than £6,000.

Two apps, one tax year

What the apps show	Dates
Your tax year	6 April to 5 April
Some app summaries	1 January to 31 December

If an app’s yearly summary runs January to December, add up your weekly payouts for the tax year instead. Recording each one in Pulse as it lands does this for you.