How UK Delivery Drivers Can Claim Mileage and Fuel Expenses

If you’re a UK delivery driver, you’ve probably asked yourself, "How can I save on taxes?" The answer lies in understanding what expenses you can claim back, including mileage and fuel costs. Whether you’re working for Amazon, DPD, Hermes, or doing part-time food deliveries, this guide will break down everything you need to know. By the end, you’ll be well equipped to maximise your earnings while staying HMRC-compliant.

Read on to learn how to reduce your tax bill with allowable expenses like mileage claims, how to file your claim, and why record-keeping is key.

What Expenses Can UK Delivery Drivers Claim For?

As a UK delivery driver, whether you deliver food, parcels, or even operate as a taxi driver, there are specific work-related expenses you can claim. The most common and impactful one? Mileage expenses.

Every mile you drive for work-related purposes—from picking up a delivery to returning to your base—can count. Take James, for instance—a food delivery driver in London. For every mile he drives during his shifts, he can reduce his tax bill by claiming mileage expenses, making a big difference at tax time.

Examples of Allowable Expenses:

• Mileage driven specifically for work
• Vehicle maintenance or repairs, e.g., oil changes or tyre replacements
• Protective clothing or uniforms required for the job
• Insurance specifically for business use
• Road tolls or parking fees (for work-related trips)

Understanding what you can claim ensures you don’t miss out on savings.

For more details on what qualifies, check out HMRC's official guidelines on UK tax savings for delivery drivers.

How Does Claiming Mileage Work for Delivery Drivers?

Claiming mileage is simpler than you might think, thanks to HMRC's mileage rates. These rates cover the cost of fuel, wear and tear, and other related expenses, making the process straightforward.

HMRC Mileage Rates:

• 45p per mile for the first 10,000 miles driven in a tax year
• 25p per mile for any additional miles beyond 10,000

For example, Sarah, a courier driver, tracks her weekly mileage and finds she drives 100 miles for work each week. Over a one-year period, she can claim £45 per week, which adds up to approximately £2,340 annually.

Quick Tip: Use a spreadsheet or one of the best mileage tracking apps like MileIQ to easily track your miles—it’s one less headache when filing your taxes!

Can I Claim for Fuel as Well?

Absolutely! Fuel is part of your claim—but here’s the key detail: the mileage rate already includes fuel costs. This means you don’t need to track every receipt from the pump.

For example, Peter, a taxi driver who drives 200 miles in a week, uses the mileage rate to claim £90 (200 miles x £0.45). No need to estimate how much he spent on petrol—it’s all accounted for within the rate.

This simplicity is a huge win for busy drivers who don’t have time to manage numerous receipts.

Are There Any Other Expenses Delivery Drivers Can Claim?

Beyond mileage and fuel, there’s a range of other allowable expenses that can help lower your tax bill.

Additional Expenses You Could Claim:

• Vehicle Maintenance and Repairs

If you’re like Emma, a delivery driver for a logistics company, you’re familiar with regular vehicle upkeep like oil changes and tyre replacements. Good news—these costs can be deducted on your tax return.

• Insurance for Business Use

If your job requires specialised coverage, you can deduct the portion of your insurance premium that relates to business use.

• Parking Fees and Tolls

Do you pay to park while collecting goods or delivering them? Parking fees and road tolls are also claimable—just make sure you keep receipts.

For more clarity, visit HMRC’s section on allowable expenses for self-employed drivers.

• Mobile Phone Costs

Do you use your phone to communicate with customers or check delivery routes? You can claim a percentage of your phone bill that relates to work use.

Each of these deductions might seem small, but together, they add up to significant savings.

What Do I Need to Keep Track Of?

When making any work-related claims, accurate record-keeping is essential. While it might feel like extra work upfront, it helps you stay organised and ensures you can provide evidence if HMRC requests it.

Essentials for Record-Keeping:

1. Mileage Logs

Use apps like MileIQ or Microsoft Excel. Be sure to note the date, miles driven, and purpose of the trip.

1. Receipts

Save all receipts related to vehicle maintenance, parking, or insurance. Apps like Receiva make this hassle-free by allowing you to photograph and store receipts digitally.

1. Proof of Work-Related Use

If you’re claiming phone bills or insurance, keep detailed records showing what percentage is for business use.

For tips on staying organised, check out this guide to best mileage tracking apps.

Maximise Your Earnings with Records and Knowledge

The life of a delivery driver comes with plenty of challenges, but claiming mileage and fuel expenses doesn’t have to be one of them. By understanding what counts as an allowable expense, keeping detailed records, and filing accurately with HMRC, you can reduce your tax bill and keep more of your hard-earned money.

If you’re unsure where to start, it’s worth consulting an accountant to avoid missing out on potential savings.

Get ahead of your tax return today and make sure you’re claiming everything you deserve.