Should I claim mileage or actual running costs?

For almost every delivery driver, the mileage method. It is worth more, needs no receipts, and the choice is locked in per vehicle once you make it.

By JoltMilePublished 19/08/2026

Last checked 12/09/2026.

The mileage method, in almost every case. At 55p a mile for your first 10,000 business miles it is worth more than the real running costs of the sort of car most delivery drivers use, and it needs no receipts and no apportionment.

What each method covers

Mileage methodActual costs
What you claim55p per mile to 10,000, then 25pThe business share of every running cost
CoversFuel, insurance, tax, servicing, repairs, depreciationThe same list, worked out for real
Records neededA mileage logEvery receipt, plus a mileage log to work out the business share
Capital allowancesNot available on the vehicleAvailable on the vehicle

When actual costs can win

An expensive vehicle, a high-value van bought outright, or unusually heavy repair bills can tip it. So can very low mileage with high fixed costs. If you are in that position it is worth working both out once, properly, rather than assuming.

JoltMile is built around the mileage method, applies 55p and 25p at the right point in the year, and tracks your cumulative miles so the 10,000 threshold is handled for you. Simplified expenses if you are self-employed (opens in a new tab).

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Guide

The complete mileage guide for delivery drivers

What counts as a business mile, the 55p and 25p approved rates, the 10,000-mile threshold, and whether mileage or actual costs leaves you better off.

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Can I switch from mileage to actual costs?

Not for a vehicle you have already claimed mileage on. You can choose again when you change vehicle.

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What can I claim on top of the mileage allowance?

Anything that is not a cost of running the vehicle - parking, phone, kit, platform fees.

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Business miles, commuting and the depot run

A business mile is one driven wholly for the work. Commuting between home and a regular workplace is never claimable. For most gig drivers the working day starts when the app goes on, which makes the drive to a chosen pickup zone personal and the drive between drops business.

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Record keeping, and how long to keep it

You have to keep enough to show how every figure on your return was arrived at: what you were paid, what you spent, and how far you drove for the work. Records have to be kept for 5 years after the filing deadline for the year they cover.

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Capital allowances on a vehicle

A capital allowance is tax relief on something you bought to keep and use, spread over years rather than deducted at once. You cannot claim capital allowances on a vehicle and use the mileage rate for it, so for most gig drivers this is a road not taken.

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