Simplified expenses
Simplified expenses are HMRC flat rates you can use instead of adding up what something really cost. For drivers the important one is the mileage rate, which replaces every running cost of the vehicle with a rate per mile.
Correct for the 2026/27 tax year. Last checked 12/09/2026.
There are three flat rates in the scheme: vehicles, working from home, and living in your business premises. Only the first two are likely to reach a delivery driver.
What it means for your money
It is simpler and usually better. Claiming actual costs means keeping every fuel receipt, every service invoice and an apportionment between business and private use, and then defending that split. The mileage rate needs a log of miles.
Where to read more
Simplified mileage against actual costs shows where the two methods cross over.
Sources
Related
Mileage method or actual costs: which is worth more?
For most delivery drivers the mileage method wins, and it is not close. At 55p a mile it usually beats the real running cost of an ordinary car, and it needs no receipts.
Mileage & expensesUpdated 20/08/2026
AMAP (approved mileage allowance payments)
AMAP is the flat per-mile rate HMRC lets you claim instead of working out what your vehicle actually costs. For a car or van it is 55p a mile for the first 10,000 business miles in a tax year and 25p after that.
Mileage & expensesUpdated 27/08/2026
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.
Mileage & expensesUpdated 19/08/2026
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.
Mileage & expensesUpdated 27/08/2026
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.
HMRC & taxUpdated 27/08/2026
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.
Mileage & expensesUpdated 27/08/2026