Top 5 Tax Deductions Every Deliveroo & Uber Eats Driver Should Know

Top 5 Tax Deductions for Delivery Drivers

One of the perks of being self-employed is the ability to deduct business expenses from your income, reducing your overall tax bill. However, you can only claim expenses that are wholly and exclusively for your business.

1. Vehicle Mileage

This is often the biggest deduction. You can claim a flat rate for every business mile you drive:

• 45p per mile for the first 10,000 miles
• 25p per mile for every mile thereafter

Note: If you use this method, you cannot claim separate costs for fuel, insurance, repairs, or servicing.

2. Mobile Phone Costs

Since you need ample data and a working phone to accept orders, a portion of your mobile phone bill is tax-deductible. Calculate the percentage of business use vs. personal use and claim that proportion.

3. Equipment and Gear

Items necessary for your job are deductible. This includes:

• Insulated food delivery bags
• Phone mounts and chargers
• High-vis jackets and protective clothing
• Bicycles or e-bike accessories

4. Accountancy and Software Fees

Fees you pay to an accountant or for tax software (like GigCalc!) are fully deductible business expenses.

5. Bank Charges and Insurance

If you have a dedicated business bank account, the fees are deductible. Similarly, the business portion of your vehicle insurance (Hire and Reward insurance) can be claimed if you aren't using the mileage allowance method.

Trading Allowance vs. Expenses

Remember, you can choose to claim the £1,000 tax-free Trading Allowance instead of actual expenses. If your total expenses are less than £1,000, it’s usually better to claim the Trading Allowance.