Delivery Drivers in the UK: What You Need to Know About Self-Assessment

Are you a self-employed delivery driver in the UK working for Amazon, DPD, Hermes, Deliveroo, or Bolt? Managing your taxes may seem tricky, but with the right approach, you can simplify the process and stay on top of your obligations. From understanding self-assessment to claiming allowable expenses, this guide is here to help.

Your Tax Obligations Explained

When you’re self-employed, you’re responsible for reporting your earnings to HM Revenue and Customs (HMRC) through a self-assessment tax return. But what does that actually involve?

What is Self-Assessment?

Self-assessment is how HMRC collects Income Tax from individuals whose tax isn’t automatically deducted. If your annual income exceeds £12,570 (as of the 2024/25 tax year), you’ll need to pay Income Tax on the amount above this threshold. Additionally, you may owe National Insurance Contributions (NICs)—Class 2 if profits are over £12,570 and Class 4 if they surpass £11,908.

Filing deadlines include:

• 31 October for paper tax returns.
• 31 January for online tax returns.

Meeting these deadlines avoids penalties and gives you more time to plan payments. Consider filing early for peace of mind.

What Is Making Tax Digital?

With Making Tax Digital (MTD), self-employed workers must maintain digital financial records and submit quarterly updates online. This shift ensures more accurate reporting and streamlines the process. Learn more about MTD on the official UK government page.

Not confident about this new process? An experienced online accountant can guide you through maintaining digital records and meeting quarterly deadlines.

Maximise Savings Through Allowable Expenses

A big perk of self-employment is claiming allowable expenses, which lower your taxable income. If you’re a delivery driver, here’s what you can typically offset against your earnings:

• Vehicle-related costs including fuel, insurance, servicing, and repairs.
• Phone & internet bills proportional to the amount used for work.
• Work-related expenses like parking fees (not fines) and PPE.

These deductions reduce your tax bill, but it’s essential to claim only what’s truly work-related.

Accurate Record Keeping

Keep receipts, invoices, and bank statements for all expense claims. HMRC may request proof during an audit, so thorough documentation is key. Simplify the process by using accounting software or apps like Xero or QuickBooks.

Avoiding Penalties and HMRC Investigations

Failing to file your tax return on time or submitting inaccurate information comes with consequences. A late submission alone triggers a £100 fine, followed by daily penalties and added interest on overdue taxes.

Common Mistakes to Avoid

• Missing deadlines for filing and payments.
• Incorrectly calculating revenue or expenses.
• Forgetting to register for MTD if required.

Protect yourself by ensuring accuracy and seeking professional advice if you’re unsure. HMRC’s self-assessment page explains more about the penalties and how to avoid them.

When to Seek Professional Help

Dealing with self-assessment and compliance under MTD can feel overwhelming. That’s where working with an expert can make all the difference. Professional accountants provide tailored advice, precise calculations, and timely submissions. They help you focus on your work—not financial admin.

Look for online accounting services that specialise in self-employed individuals, offer transparent pricing, and have excellent reviews.

Take Action Today

Managing your self-assessment doesn’t have to be stressful. By understanding your obligations, claiming all allowable expenses, and consulting a reliable accountant for guidance, you can save time, money, and unnecessary headaches.

Need help? Get in touch with us and let us simplify the process before the January rush. Get started today by filing early and taking control of your financial future.