Complete List of Allowable Expenses for Delivery Drivers in 2025/26
Allowable Expenses for Delivery Drivers: The Complete HMRC-Approved List
The average UK delivery driver leaves £500-£1,200 per year in unclaimed expenses on the table. That's money going straight to HMRC instead of staying in your pocket. The reason? Most drivers simply don't know what they can claim.
HMRC allows self-employed workers to deduct "wholly and exclusively" business expenses from their income before calculating tax. For delivery drivers, the list is longer than you might think. This guide covers every legitimate expense you can claim, with practical examples and HMRC references.
The Golden Rule: "Wholly and Exclusively" for Business
Before we dive into the list, understand HMRC's key test: an expense must be incurred "wholly and exclusively" for business purposes. If something has both personal and business use (like your phone), you can claim the business proportion.
For example, if you use your phone 60% for deliveries (navigation, apps, customer calls) and 40% personally, you can claim 60% of your phone bill.
Category 1: Vehicle Expenses
Your vehicle is your biggest business asset. You have two HMRC-approved methods to claim vehicle costs:
Option A: Simplified Mileage Rate (Recommended for Most Drivers)
| Miles | Rate | Example (12,000 business miles) |
|---|---|---|
| First 10,000 | 45p per mile | 10,000 × £0.45 = £4,500 |
| Above 10,000 | 25p per mile | 2,000 × £0.25 = £500 |
| Total claim | £5,000 | |
With mileage, you cannot also claim fuel, insurance, repairs, or MOT separately — the mileage rate covers everything vehicle-related.
Option B: Actual Vehicle Costs
If you prefer, claim the actual costs of running your vehicle for business. You'll need to calculate the business-use percentage:
- Fuel: Business proportion of all fuel purchases
- Insurance: Business proportion of your vehicle insurance premium
- Road tax: Business proportion
- MOT and servicing: Business proportion of maintenance costs
- Repairs: Business proportion (e.g., new tyres, brake pads)
- Breakdown cover: Business proportion of AA/RAC membership
- Car wash: If needed for business appearance
- Lease payments: Business proportion (not the full lease cost if also personal use)
Which is better? For most delivery drivers doing 8,000-15,000 business miles per year, the mileage method usually wins. Use our free calculator to compare both methods instantly.
Category 2: Phone and Technology
- Mobile phone bill: Business proportion (typically 50-70% for active drivers)
- Phone mount/holder: 100% if used only while delivering
- Phone charger (car): 100% business use
- Replacement phone: Business proportion if also used personally
- Data top-ups: Business proportion
- Sat nav device or app subscription: Business proportion
Category 3: Equipment and Supplies
- Thermal delivery bag: 100% — essential for food delivery
- Insulated backpack: 100% for cycle couriers
- Hi-vis jacket or safety gear: 100%
- Waterproof clothing: If purchased specifically for deliveries
- Cycle helmet: 100% for bicycle couriers
- Bicycle maintenance: Business proportion for cycle couriers
- Power bank: Business proportion
- Dash cam: Business proportion
Category 4: Administrative and Professional
- Accountancy fees: 100% — the cost of preparing your tax return
- Tax software subscriptions: 100%
- Bank charges: Business proportion (or 100% if you have a separate business account)
- Stationery: Pens, notebooks, printer ink for business records
- Postage: For business correspondence
Category 5: Insurance and Licences
- Public liability insurance: 100% if required for your delivery work
- Additional vehicle insurance: The extra cost of business/hire-and-reward cover above standard personal insurance
- DBS check: 100% if required by a platform
- Driving licence renewal: Business proportion
Category 6: Parking and Tolls
- Car parking fees: When parking for collections or deliveries
- Congestion charge: Business journeys only
- ULEZ charge: Business journeys only
- Road tolls: Business journeys only (e.g., Dartford Crossing, M6 Toll)
Note: Parking fines and speeding tickets are never allowable, even if incurred during a delivery.
Category 7: Working from Home
If you do admin work at home (invoicing, record-keeping, route planning), you can claim:
- Flat rate: £6 per week (£312 per year) — no receipts needed
- Actual costs: Business proportion of electricity, heating, internet, and council tax for the room used
What You CANNOT Claim
- Personal food and drink: Your own lunch or coffee while working
- Clothing that could be worn personally: Normal jeans, trainers, etc.
- Commuting to a regular workplace: Travelling to the same depot daily
- Fines and penalties: Parking tickets, speeding fines, HMRC penalties
- Gym membership: Even if you cycle for deliveries
- Travel between home and your first delivery: This is generally considered commuting
How to Keep Records
HMRC requires you to keep records for at least 5 years after the filing deadline. Tips:
- Take photos of receipts immediately — paper fades
- Use a simple spreadsheet or app to log expenses weekly
- Keep a mileage log with date, start point, destination, and purpose
- Separate business and personal bank accounts where possible
Frequently Asked Questions
Can I claim for food I buy while delivering?
Generally no. HMRC considers eating a personal choice. The exception is if you're on an overnight trip away from home — then "subsistence" costs may be claimable.
Do I need receipts for mileage claims?
You don't need fuel receipts with the mileage method, but you do need a mileage log showing dates, distances, and business purpose.
Can I claim the cost of buying my delivery vehicle?
Not directly as an expense. But you can claim Capital Allowances — typically the Annual Investment Allowance, which lets you deduct the business-use proportion of the vehicle cost. This is separate from running costs.
What if I forgot to claim expenses in previous years?
You can amend your tax return up to 12 months after the filing deadline. For older years, you may be able to make an "overpayment relief" claim to HMRC.
Is the Trading Allowance (£1,000) better than claiming actual expenses?
Only if your actual allowable expenses are less than £1,000, which is rare for active delivery drivers. The £1,000 Trading Allowance is mainly useful for very casual gig workers.
Conclusion
Claiming the right expenses is the single biggest way to reduce your tax bill as a delivery driver. The key is knowing what qualifies and keeping good records. Don't leave money on the table.
Want to see exactly how much your expenses could save you? Use our free tax calculator — enter your income and expenses, and we'll show you the optimal deduction method and your exact tax bill.