Delivery Courier Expenses: What You Can and Can't Claim

Self-employed delivery couriers can claim costs that are wholly and exclusively for their delivery work, plus the business share of anything also used personally. That typically means vehicle or bike running costs, part of your phone, delivery bags, platform fees and parking while working — but never everyday food, clothing or fines.

The single biggest decision is how you claim vehicle costs, because it controls what else you can claim alongside. This guide works through what is and is not allowable, how the two vehicle methods compare, and the records that make your claim stand up if HMRC asks.

Key takeaways

• Only costs incurred for the delivery work, or their business share, are allowable.
• Choose between actual vehicle costs and simplified mileage rates; you cannot mix them.
• Your phone, delivery bags and platform fees are usually allowable in part or in full.
• Everyday meals, ordinary clothing and fines are not allowable.
• A mileage log and platform statements are the backbone of your records.

What "allowable expense" means

An allowable expense is a cost you can deduct from your self-employed income before tax is worked out. The general rule is that it must be incurred wholly and exclusively for the business. Where something is used for both work and personal life, such as a phone or a car, you can usually claim the business proportion. HMRC's overview is on GOV.UK's expenses if you're self-employed page.

Vehicle costs: the decision that shapes everything else

Couriers using a car, van or motorcycle can claim vehicle costs in one of two ways. The actual costs method claims the business share of what you really spend: fuel, insurance, servicing, repairs, road tax and MOT, plus capital allowances on the vehicle. The simplified expenses method uses flat mileage rates set by HMRC instead of all those running costs. The rules and current rates are on GOV.UK's simplified expenses for vehicles page.

Once you choose a method for a vehicle, you normally keep it for as long as you use that vehicle. Cyclists can also claim for business journeys by bike; check the current treatment on GOV.UK.

What you can and cannot claim

Income: gross or net of fees?

Delivery platforms present earnings differently. Some statements show gross earnings followed by a service fee; others only show what was paid into your bank. The principle is consistency: if the statement shows a gross figure and a fee, declare the gross amount as income and claim the fee as an expense. Tips paid through the app are generally part of your income too. Keep every statement for the tax year.

Step by step: keep records that hold up

1. Decide your vehicle method at the start and record the decision.
2. Download platform statements monthly and keep them for the tax year, 6 April to 5 April.
3. Keep a mileage log: odometer readings at the start and end of each shift.
4. Photograph receipts for equipment, phone bills and parking as you go.
5. Use a separate bank account for delivery income and costs if you can.
6. Work out your phone and vehicle business percentages from real usage, not guesses.
7. Leave out personal costs and fines completely.

Worked example (illustrative example)

"Kemi", an invented illustrative example, delivers food by motorcycle across several apps. Her mileage log shows that most of the bike's miles are for deliveries, with a smaller share for personal trips.

Kemi uses the simplified mileage rate for the motorcycle, so she claims her business miles at HMRC's rate and does not claim fuel, insurance or servicing separately. On top of that she claims her insulated delivery bag, a phone mount, the business share of her phone contract, the platform service fees shown on her statements, and parking while working. Her lunches during shifts and a parking fine are left out.

A friend with an older, thirstier car uses actual costs instead, claiming the business share of fuel and insurance. Both approaches are valid; the key is sticking with the chosen method for each vehicle. Kemi is invented for illustration, not a real client.

Common mistakes

• Claiming fuel on top of mileage rates. It double-counts running costs.
• Claiming 100% of a phone or car used personally. Only the business share is allowable.
• Claiming meals and clothing. These are personal costs.
• Declaring net income and claiming fees too. That deducts the same fee twice.
• Having no mileage log. Without one, your business percentage is hard to support.

Getting it handled

Our personal tax service starts from £180 per year and prepares your Self Assessment return, including choosing the right vehicle method on your real figures. Couriers who also drive passengers should read private hire insurance and your tax return, and our app-based driver tax return guide covers the return itself. We also work with app-based drivers through our driver accounting service.

Want a second pair of eyes on your expenses? Get in touch or see our pricing.