Mileage Allowance for Delivery Drivers 2026: HMRC Rates Explained
Self-employed UK delivery drivers can claim 45p per mile for the first 10,000 business miles by car or van, and 25p per mile thereafter. Bicycle couriers (Deliveroo, Bolt Food) claim 20p per mile with no upper limit. On 10,000 car miles, that is a £4,500 deduction reducing your taxable profit directly. You claim this on your Self Assessment return each year.
Key Takeaways
- Car/van: 45p per mile for first 10,000 business miles, 25p thereafter
- Bicycle: 20p per mile for all business miles — no upper limit
- Motorcycle: 24p per mile for all business miles — no upper limit
- Mileage allowance covers fuel, insurance, depreciation — no separate claims needed
- You must keep a mileage log for every journey: date, route, and purpose
- Once you choose mileage allowance for a vehicle, you cannot switch to actual costs
Table of Contents
What Are the HMRC Mileage Allowance Rates for 2026?
HMRC sets Approved Mileage Allowance Payment (AMAP) rates for self-employed workers. These rates cover all costs of using your own vehicle for business: fuel, oil, tyres, insurance, servicing, and depreciation. You claim one flat rate per mile rather than tracking each cost individually.
| Vehicle Type | First 10,000 Business Miles | Above 10,000 Business Miles |
|---|---|---|
| Car or van | 45p per mile | 25p per mile |
| Motorcycle | 24p per mile | 24p per mile |
| Bicycle | 20p per mile | 20p per mile |
"You can claim Approved Mileage Allowance Payments (AMAP) for using your own vehicle for business purposes. The rate for cars and vans is 45p per mile for the first 10,000 miles."
— GOV.UK — HMRC Employment Income Manual EIM31205
These rates have not changed since 2011. HMRC reviews them periodically. For the 2025/26 tax year, the rates above remain current and authoritative.
Which Mileage Rate Applies to Your Delivery Platform?
The rate you claim depends entirely on the vehicle you use for deliveries — not the platform you work for. Many platforms allow couriers to choose their vehicle type, so confirm which vehicle you actually used for each delivery period.
| Platform | Typical Vehicle | HMRC Rate | 10,000 Miles = Deduction |
|---|---|---|---|
| Amazon Flex | Car or van | 45p / 25p | £4,500 |
| Uber Eats (car) | Car | 45p / 25p | £4,500 |
| Just Eat (car) | Car | 45p / 25p | £4,500 |
| Deliveroo (bicycle) | Bicycle | 20p | £2,000 |
| Bolt Food (bicycle) | Bicycle | 20p | £2,000 |
If you switch between vehicles within the same tax year — for example, cycling in summer and driving in winter — you must log each journey with the vehicle used and apply the correct rate for that journey.
How Do You Calculate Your Mileage Allowance Deduction?
The calculation is straightforward. Multiply your total business miles by the applicable rate, applying the threshold split for cars and vans.
| Scenario | Calculation | Total Deduction |
|---|---|---|
| Car: 8,000 miles | 8,000 × 45p | £3,600 |
| Car: 10,000 miles | 10,000 × 45p | £4,500 |
| Car: 14,000 miles | (10,000 × 45p) + (4,000 × 25p) | £5,500 |
| Bicycle: 6,000 miles | 6,000 × 20p | £1,200 |
| Bicycle: 10,000 miles | 10,000 × 20p | £2,000 |
How Much Tax Does Mileage Actually Save?
Every pound of mileage deduction reduces your taxable profit by £1. For a basic rate taxpayer, that saves 20p in Income Tax plus 6p in Class 4 NI per pound of deduction — a combined saving of 26p per pound. On a £4,500 car mileage deduction, you save approximately £1,170 in total tax. This is why accurate mileage logging is the single most valuable tax habit for delivery drivers.
Should You Claim Mileage Allowance or Actual Vehicle Costs?
Self-employed delivery drivers have two options for claiming vehicle costs: the HMRC mileage allowance or the actual costs method. You must choose one approach per vehicle and cannot switch later.
| Method | What It Covers | Record-Keeping | Best For |
|---|---|---|---|
| Mileage allowance (AMAP) | All vehicle costs in one rate | Mileage log only | Most gig drivers |
| Actual costs | Fuel, insurance, servicing, depreciation | All receipts + mileage log | High-cost vehicles, low mileage |
For the majority of delivery drivers, the mileage allowance method is simpler and produces a higher deduction. Actual costs become worth considering only if you drive a high-cost vehicle and cover relatively few business miles per year.
You Cannot Switch Methods Retrospectively
Once you choose the mileage allowance method for a vehicle, HMRC does not allow you to switch to actual costs for that vehicle in a later year — even if actual costs would produce a larger deduction. Make your decision in the first year you use the vehicle for business and record your choice in your accounts.
How Do You Keep a Valid Mileage Log?
HMRC requires a contemporaneous record — meaning you log journeys as they happen, not at the end of the year from memory. A retrospective estimate is not acceptable and will be disallowed if HMRC investigates.
Each entry in your mileage log must include:
- Date of the journey
- Start location (e.g. home address or depot)
- Destination (e.g. delivery area or postcode)
- Business purpose (e.g. Amazon Flex delivery block)
- Miles covered for that journey
- Vehicle used if you operate more than one vehicle
Best Tools for Logging Delivery Mileage
Several free and low-cost apps automate mileage logging using your phone's GPS. Popular options for UK self-employed workers include MileIQ, TripLog, and Driversnote. These apps record journeys automatically and export HMRC-compliant logs at year end. Alternatively, a simple spreadsheet updated after each shift takes under two minutes and satisfies HMRC requirements.
Keep your mileage records for at least 5 years after the 31 January submission deadline for the relevant tax year. HMRC can open an enquiry for up to 4 years after filing, or longer if errors are suspected.
How Do You Claim Mileage Allowance on Your Self Assessment Return?
You enter your total mileage deduction as an allowable expense when completing your Self-Employment supplementary pages (SA103S or SA103F) as part of your annual Self Assessment return.
- Total your business miles from your mileage log for the full tax year (6 April 2025 to 5 April 2026)
- Apply the correct rate. For cars: (miles up to 10,000 × 45p) + (miles above 10,000 × 25p). For bicycles: total miles × 20p
- Enter the total deduction in the "Motor expenses" or "Other expenses" box on your SA103S form — HMRC guidance confirms mileage allowance is entered here
- Do not also claim fuel, insurance, or servicing separately if you are using the mileage method — the flat rate already covers all these costs
- Keep your mileage log in case HMRC requests supporting evidence
If you are filing using HMRC-approved tax software, there will be a dedicated field for mileage allowance. Enter your calculated total and the software will include it in the correct box automatically.
What Are the Most Common Mileage Mistakes That Trigger HMRC Queries?
HMRC data-matches mileage claims against fuel consumption patterns and average journey lengths for specific postcodes. The following errors are most likely to attract scrutiny.
- Claiming commuting miles: The journey from your home to your first regular pick-up location is not a business mile. Business mileage begins only when you are travelling on a delivery or between delivery locations
- Round-number estimates: Claiming exactly 10,000 miles every year without a log is a significant risk indicator for HMRC
- Applying the wrong rate: Using 45p per mile for a bicycle, or failing to reduce to 25p after 10,000 car miles
- Claiming both mileage and fuel: If you use the AMAP mileage method, fuel costs are already included. Claiming them separately is double-counting
- No mileage log: HMRC can disallow the entire claim if you cannot produce contemporaneous records on request
Frequently Asked Questions
What is the HMRC mileage allowance rate for delivery drivers in 2026?
Self-employed delivery drivers can claim 45p per mile for the first 10,000 business miles by car or van, and 25p per mile thereafter. Bicycle couriers claim 20p per mile for all business miles.
Can Deliveroo and Bolt Food bicycle couriers claim mileage allowance?
Yes. Self-employed bicycle couriers can claim 20p per mile for every business mile covered. There is no upper mileage limit for the bicycle rate. A mileage log is required.
How do I calculate my mileage allowance deduction?
For a car covering 12,000 business miles: (10,000 × 45p) + (2,000 × 25p) = £4,500 + £500 = £5,000 total deduction. For a bicycle covering 6,000 miles: 6,000 × 20p = £1,200.
What records do I need to claim mileage allowance?
You must keep a mileage log recording the date, start location, destination, business purpose, and miles covered for each journey. HMRC can request these records during an enquiry.
Can I claim mileage allowance if I am self-employed?
Yes. Self-employed gig economy delivery drivers claim HMRC Approved Mileage Allowance Payments on their Self Assessment return under allowable expenses on the SA103 supplementary pages.
Can I switch from mileage allowance to actual vehicle costs?
No. Once you choose the mileage allowance method for a vehicle, you must use it for the entire life of that vehicle in your business. You cannot switch to actual costs retrospectively.
Which platforms use car mileage and which use bicycle mileage?
Amazon Flex, Uber Eats (car drivers), and Just Eat (car drivers) use 45p per mile. Deliveroo and Bolt Food bicycle couriers use 20p per mile. The rate depends on your vehicle, not the platform.
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