Accounting for couriers and delivery drivers
For a courier the vehicle is the business, so the biggest decision in the books is how to claim for it. Taxmo logs your journeys at HMRC's mileage rates and keeps payouts and costs side by side.
What Taxmo does for couriers and delivery drivers
Mileage log
Log business journeys and Taxmo applies HMRC's approved mileage rates for the tax year, including the lower rate once you pass the annual mileage band.
Income and expenses in one place
Record what you earn and spend in categories, and see your profit and what to set aside for tax as you go. On every plan.
Connect your bank
Connect your bank read-only or upload a CSV statement. Each transaction waits for your approval before it counts. On Starter and Pro.
Receipt scanning
Photograph a receipt or forward it on WhatsApp, and Taxmo reads it into an expense for you to check. On Starter and Pro.
Invoices and quotes
Send quotes and invoices from the same records, and see which invoices are still unpaid. A few a month on Free, without a cap on Starter and Pro.
Expenses couriers and delivery drivers commonly claim
Vehicle: actual costs or the flat rate
Claim the actual running costs of business journeys, such as fuel, insurance, repairs and servicing, or a flat rate per business mile for a car, van or motorcycle. You cannot switch a vehicle to the flat rate once you have claimed capital allowances on it. Source: https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles
Parking and fares
Parking, and train, bus or other fares for business journeys, are claimable on top of the flat mileage rate. Fines and penalty charges are not allowable. Source: https://www.gov.uk/expenses-if-youre-self-employed/travel
Phone and internet
The business share of phone, mobile and internet bills. Only the business part of a mixed-use bill counts. Source: https://www.gov.uk/expenses-if-youre-self-employed/office-property
Business insurance
Any insurance policy for the business, for example public liability insurance. Source: https://www.gov.uk/expenses-if-youre-self-employed/legal-financial
Equipment you keep
Equipment you keep and use in the business is claimed as an allowable expense if you use cash basis accounting, or through capital allowances if you use traditional accounting. Source: https://www.gov.uk/expenses-if-youre-self-employed/office-property
Rules worth knowing
Flat rate or actual costs
Simplified expenses let sole traders claim a flat rate per business mile instead of working out the actual costs of buying and running the vehicle. They cannot be used for a vehicle already claimed through capital allowances or included as an expense. Source: https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles
Current figures, each with its GOV.UK source, are at UK tax rates.
Common questions
Should I use the mileage rate or actual costs?
Either can come out higher depending on the vehicle and how far you drive. Once you have claimed capital allowances on a vehicle you cannot use the flat rate for it, so it is worth deciding early.
I deliver part-time alongside a job. Do I need to tell HMRC?
If your gross trading income is within the trading allowance you generally do not need to, but you then cannot claim expenses against it. Above it, you register for Self Assessment. GOV.UK has the rules and the exceptions.
General information from GOV.UK guidance, not tax advice. Rules and figures change, so verify on GOV.UK using the links on this page before relying on them.