What Can Delivery Drivers Claim on Tax in 2026/27? | UK Guide

If you operate as a self-employed delivery driver in the UK (for platforms like Deliveroo, Uber Eats, or Amazon Flex), you run a business. You pay Income Tax and National Insurance only on your net trading profits, meaning you must deduct all allowable business expenses from your gross income.

For the 2026/27 tax year, the government has extended key green tax reliefs, reduced National Insurance rates, and mandated new digital reporting rules. Here is an exhaustive breakdown of what delivery drivers can claim on tax.

Claiming Vehicle Expenses

Your vehicle represents your largest business expense. The tax system gives you two distinct methods for claiming these costs. You must choose one method and stick to it for the lifespan of that specific vehicle in your business.

Method A: Simplified Mileage Rates

To simplify record-keeping, you can claim a flat-rate deduction based on the business miles you drive, rather than tracking individual receipts for fuel, insurance, and repairs. The approved mileage rates are set out in section 230 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), and HMRC permits self-employed drivers to use these exact rates:

“The rates applicable are as follows— Car or van 45p for the first 10,000 miles 25p after that Motor cycle 24p Cycle 20p”

If you drive 12,000 business miles in a car during the 2026/27 tax year, you calculate your deduction as follows:

• 10,000 miles × 45p = £4,500
• 2,000 miles × 25p = £500
• Total claim = £5,000.

This flat rate covers all running costs (fuel, servicing, road tax, and insurance). You cannot claim these separately.

Method B: Actual Apportioned Costs & EV Allowances

Alternatively, you can claim the actual costs of running your vehicle, apportioned for the percentage you use it for business. If you drive 20,000 miles a year and 15,000 are for deliveries, you claim 75% of your total fuel, insurance, maintenance, and vehicle finance interest.

If you buy a vehicle using this method, you claim the cost of the vehicle itself via Capital Allowances. For the 2026/27 tax year, the government has heavily incentivised electric vehicles. Section 30 of the Finance Act 2026 extends the 100% First-Year Allowance (FYA) for zero-emission cars.

“…section 45D of CAA 2001 (expenditure on zero-emission cars)… for “2026” substitute “2027”.”

This allows you to deduct the entire business proportion of the purchase price of a new electric car from your taxable profits in the year you buy it, right up until 5 April 2027.

Subsistence (Food and Drink)

Normally, you cannot claim the cost of food and drink because you must eat to live, meaning it fails the “wholly and exclusively” test for business expenses. However, delivery driving is classed as an “itinerant trade” (a mobile business).

HMRC’s Business Income Manual (BIM47705) provides a specific exception for itinerant workers:

“A deduction is, however, allowable for reasonable expenses on food and drink for consumption by the trader either at a place to which the trader travels in the course of the trade or while travelling in the course of the trade, if certain conditions are satisfied… the trade is an itinerant trade at the time the expenses are incurred…”

If you purchase food while out continuously executing deliveries, you can claim the reasonable cost of these meals as a tax-deductible expense.

National Insurance Rates for 2026/27

After deducting your expenses, you pay Class 4 National Insurance Contributions (NICs) on your remaining profit.

For the 2026/27 tax year, the government has structurally reduced these rates. You pay:

• 6% on profits between the £12,570 Lower Profits Limit and the £50,270 Upper Profits Limit.
• 2% on any profits exceeding £50,270.

The mandatory flat-rate Class 2 National Insurance has been abolished for profits above £12,570. If your profits fall below the Small Profits Threshold, you can still choose to pay Class 2 voluntarily at a rate of £3.65 per week to protect your State Pension record.

Digital Reporting and MTD Compliance

For the 2026/27 tax year, two major digital reporting regimes impact delivery drivers.

Digital Platform Reporting

HMRC has enacted strict data-sharing rules for the gig economy. Digital platforms (including Deliveroo, Uber Eats, and Amazon) must now report your total earnings directly to HMRC.  You can no longer under-declare your income, as HMRC uses this automated data to instantly identify non-compliance and launch investigations.

Making Tax Digital (MTD for ITSA)

From 6 April 2026, the government mandates Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) for sole traders.  If your total qualifying trading income exceeds £50,000, you must abandon the annual tax return and instead use compatible software to maintain digital records and submit quarterly updates to HMRC.  The threshold for this mandatory digital reporting drops to £30,000 in April 2027, and £20,000 in April 2028.

Summary Table: Delivery Driver Tax Treatments (2026/27)

Next steps: If you anticipate your gross delivery income exceeding £50,000 during the 2026/27 tax year, you should immediately transition your mileage logs and expense receipts into MTD-compatible software to ensure you do not miss your first mandatory quarterly filing deadline in August 2026.