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?
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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.
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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.
Mileage & expensesUpdated 27/08/2026