Accountants for Self-Employed Delivery Drivers
Tax returns, mileage and van costs for DPD, Amazon Flex, Evri, Yodel, Royal Mail and own-van couriers. Vehicle costs are the biggest claim in this trade and the one most often under-claimed. Fixed fees, free first conversation.
Your vehicle is your biggest claim
Multi-drop work is hard on a van, and the costs are higher than most drivers put on their return. Getting the vehicle treatment right is usually worth more than everything else combined.
One choice per vehicle, and you are stuck with it — so year one matters.
Vans are treated far more generously than cars. Most drivers do not know.
Return submitted on time, records set up for MTD when it reaches you.
Chartered Accountant and Chartered Tax Adviser in the firm
Agreed before we start, no hourly billing
Wherever in the UK you drive
Accountants for Couriers and Delivery Drivers
Delivery work is self-employment from the first parcel. Nothing is deducted at source, so you register with HMRC, keep records and file a Self Assessment return each year.
What makes this trade different from other driving work is the vehicle. Multi-drop rounds put enormous mileage and wear through a van, turnover is high relative to profit, and the difference between claiming the vehicle properly and claiming it roughly is usually the largest number on the return. That is where we start — and we handle the bookkeeping through the year so the figures are there when the return is due.
Every Kind of Delivery Work
One platform or several, own van or leased, full-time or alongside another job.
DPD
Owner-driver and franchise routes, van costs and daily rates.
Amazon Flex
Block-based delivery work, usually in your own car or van.
Evri
Parcel rounds paid per drop, often alongside other work.
Yodel
Self-employed courier routes and multi-drop rounds.
Royal Mail
Parcelforce and self-employed delivery arrangements.
Own van work
Direct contracts, subcontracting and multi-drop for local firms.
Food delivery instead? See our Deliveroo and food delivery page. Driving something larger? Our HGV and lorry driver page covers that.
Van, Car and Mileage — What Actually Works Best
Four things decide how much your vehicle is worth on your return.
A van is not a car
For tax purposes vans count as plant and machinery, so the cost can often be claimed far more quickly than a car of the same value. If you are choosing between the two, this is worth knowing before you buy.
Mileage or actual costs
45p per mile for the first 10,000 business miles then 25p, or actual running costs plus capital allowances. For a van used only for deliveries, actual costs frequently work out better.
One choice per vehicle
Once you claim simplified mileage for a vehicle you must keep using it for that vehicle. You cannot switch to actual costs later, so the first year matters more than people realise.
Multi-drop wear and tear
Courier work destroys vehicles faster than ordinary driving. Tyres, brakes, clutches and servicing at short intervals are all business costs, and they add up to more than most drivers claim.
Rates and allowances are set by HMRC and change from time to time. See GOV.UK simplified expenses, or ask us to compare both methods on your actual figures.
Which method suits you?Amazon Flex Drivers
Flex drivers are self-employed and paid per block, with nothing deducted for tax. The expense that matters most is mileage, and it is usually higher than drivers assume — the drive to the station before the block starts counts as business mileage too, and over a year that is a substantial claim on its own.
Worth being clear on one thing, because it causes constant confusion: Flex is delivery work. Selling on Amazon is a different business entirely, with stock, fees and VAT considerations. If you sell rather than deliver, this is not the right page.
What Flex drivers should track
- Blocks worked, with dates and the payment for each.
- Miles for every block, including travel to and from the station.
- Fuel, servicing, insurance and repairs if claiming actual costs.
- Phone and data — the app is not optional, so a share is claimable.
- Parking on the round, and any equipment you buy yourself.
MTD for Self-Employed Delivery Drivers
MTD for Income Tax already applies to sole traders with qualifying income over £50,000, dropping to £30,000 from April 2027 and £20,000 from April 2028.
This catches couriers earlier than almost any other trade, because the threshold uses gross income, not profit. Multi-drop turnover is high and vehicle costs eat most of it. A driver taking home £22,000 on turnover of £45,000 is measured on the £45,000 — and will be inside MTD from April 2027.
Worth setting your records up before it arrives rather than in the month it does. Read more about our Making Tax Digital support.
Getting ready
- Check your gross income against the thresholds — not your take-home.
- Move records off paper and into Xero, QuickBooks or FreeAgent.
- Get into a quarterly rhythm before it becomes compulsory.
- Keep mileage logged as you go rather than reconstructing it in January.
Second Van, First Driver
A lot of couriers end up running two or three vans, or subcontracting rounds to other drivers. At that point you are a business rather than a driver, and three things change: VAT becomes a live question as turnover climbs, payroll is needed if you employ anyone, and a limited company may start making sense.
The one to get right early is employment status. If you take on drivers and treat them as self-employed, HMRC may take a different view — and the liability sits with you, not them. It is a much cheaper conversation before the first payment than after an enquiry.
Our Delivery Driver Tax Return Process
A straightforward process from first conversation to a filed return.
- Tell us which platforms you deliver for, what you drive and the tax year you need.
- Send your income records, bank statements, mileage logs, fuel and vehicle receipts and any HMRC letters.
- We review your records, compare mileage against actual vehicle costs and check your VAT position.
- We prepare your Self Assessment return and explain the figures clearly before submission.
- After your approval we file with HMRC and confirm what is payable and when.
- We set up your record-keeping for the year ahead, including MTD readiness where it applies.
Need Help With Your Delivery Driver Tax Return?
Self Assessment, mileage, van costs, VAT and Making Tax Digital for DPD, Amazon Flex, Evri, Yodel and own-van couriers. Fixed fees, free first conversation.
Delivery Driver Tax Questions, Answered
Registering, van costs, mileage, Amazon Flex, VAT and Making Tax Digital.
Registering and filing
Yes, if your gross self-employment income was more than £1,000 in a tax year. That covers DPD, Amazon Flex, Evri, Yodel, Royal Mail self-employed rounds and direct van work. Register with HMRC by 5 October following the end of the tax year in which you started, then file by 31 January. There is an automatic £100 penalty for filing late even where no tax is owed.
No. You register as self-employed once and report everything on a single Self Assessment return, whatever mix of platforms and direct contracts it came from. Keeping the income from each separated in your own records makes the return quicker, and shows you which work is genuinely paying once fuel and mileage are accounted for.
You pay Income Tax and National Insurance on your profit — income after allowable expenses — not on what the platform paid you. The first £12,570 of total income is usually covered by the personal allowance, then 20% at basic rate. Setting aside 20 to 30% of your profit covers most drivers, though vehicle costs are high in this trade so profit is often a lot lower than turnover.
Yes. Under HMRC digital platform reporting rules, delivery platforms share driver income data with HMRC. It does not replace your responsibility to keep records and declare everything, but it does mean your figures need to match what the platforms reported.
Your van, mileage and expenses
Business mileage or actual vehicle running costs, insurance including goods in transit and public liability, servicing, repairs, tyres, MOT, vehicle cleaning, parking and tolls on business journeys, phone and data, trolleys and straps, scanners and equipment, PPE and work clothing, and accountancy fees. In multi-drop work the vehicle costs are usually the largest single item by some distance.
Usually, yes — and more quickly than a car. Vans count as plant and machinery for tax purposes, so a van used wholly for business can often be claimed against profits far faster than a car of the same value. If there is private use, the claim is restricted to the business proportion. If you are choosing between a car and a van for delivery work, this is worth factoring in.
It depends on the vehicle and how it is used. Simplified mileage at 45p and 25p is easier and suits drivers using a car that is also for personal use. Actual costs plus capital allowances usually give a better result for a van used only for deliveries, particularly with high mileage and heavy wear. You must pick one per vehicle and stick with it, so it is worth comparing properly in year one.
No. Fines and penalty notices are never allowable, which is worth knowing in a trade where they are an occupational hazard. Parking fees for genuine business journeys are allowable.
Amazon Flex and platform work
Yes, once your gross income from Flex and any other self-employed work passes £1,000 in a tax year. Amazon Flex drivers are self-employed, so no tax is deducted from your block payments. You register with HMRC, keep records of blocks worked and mileage driven, and file a Self Assessment return.
The main one is mileage or vehicle running costs, which in Flex work is substantial — you are usually driving your own car, often a fair distance to the station before the round even starts. Also phone and data, parking on the round, and any equipment you buy yourself. Keep a log of blocks worked with the miles for each.
Completely, and they are often confused. Flex is delivery work — you are paid for blocks and taxed as a self-employed driver, which is what this page covers. Selling on Amazon is a retail business with stock, fees, VAT and possibly overseas considerations. If you sell rather than deliver, our ecommerce accountancy page is the right one.
Growing, VAT and Making Tax Digital
MTD for Income Tax applies to sole traders by qualifying income — gross income, not profit. It already applies above £50,000, dropping to £30,000 from April 2027 and £20,000 from April 2028. This catches a lot of multi-drop couriers, because turnover in this trade is high relative to profit. A driver taking home £22,000 on turnover of £45,000 is measured on the £45,000.
Registration is required once taxable turnover exceeds £90,000 in a rolling 12-month period. A single driver rarely reaches it, but franchise routes, drivers running two or three vans, and courier businesses subcontracting to others often do. It is worth watching if you are growing.
Most single-van drivers stay as sole traders. A company can become worth considering once profits rise, you are running multiple vehicles or taking on drivers. It brings more filing and cost, and vehicle capital allowances work differently, so the case has to be made on numbers. We can model both.
You will need payroll, PAYE, real-time submissions and pension auto-enrolment, plus clarity on whether the drivers are employees or genuinely self-employed. HMRC asks about employment status frequently in this trade and the liability sits with you. Worth settling before the first payment rather than after.
What Bolt Drivers Need to Know About Tax
Bolt does not deduct tax from what you earn. You are self-employed from your first fare, which means registering with HMRC, keeping records and filing a Self Assessment tax return each year.
Register by 5 October
If you earn more than £1,000 from driving in a tax year, you must tell HMRC by 5 October following the end of that tax year. The return itself is due by 31 January.
Set aside 20 to 30%
A rough guide for Income Tax and National Insurance on your profit. Putting it aside weekly is the simplest way to avoid a January surprise.
Claim your mileage
45p per mile for the first 10,000 business miles and 25p after that, or actual running costs — whichever works out better for your vehicle.
Working both apps?
Bolt and Uber together is still one tax return. Keep the income from each separated in your records and it stays straightforward.
Two things worth knowing. HMRC receives income data directly from platforms under digital reporting rules, so what you declare needs to match what Bolt reports. And Making Tax Digital for Income Tax already applies to sole traders with gross income over £50,000, dropping to £30,000 from April 2027 and £20,000 from April 2028. The test uses turnover rather than profit, so it catches more full-time drivers than people expect.