The recent change to the 55p mileage rate for delivery drivers is great news, especially since this is the first change in 15 years. But what does it mean to delivery drivers in the UK?
From April 2026 the mileage rate you can claim has increased from 45p per mile to 55p on the first 10,000 miles you travel for business. For each mile after the 10,000 you can claim 25p per mile.
Example 1:
Lets say you do 10,000 miles delivering parcels for Amazon Flex in your own vehicle.
Old rate 45p per mile = £4500 claim on your tax return
New rate 55p per mile = £5500 claim on your tax return
This means you claim an extra £1000.00, which covers petrol, servicing, maintenance and insurance.
Higher expense claim = Lower tax bill
Rules:
- Can be claimed if you use a car or van
- Mileage solely for business miles covered
- Once you start using the simplified mileage rate for your vehicle, you cannot change back.
- The 55p mileage rate only applies to the first 10,000 miles. (25p per mile thereafter).
- You must keep an accurate mileage log.
What does the 55p mileage rate for delivery drivers cover?
- Fuel costs (petrol and Diesel) for the business related miles you do.
- Vehicle wear and tear as well as depreciation.
- Vehicle Insurance for Business use.
- Getting a vehicle MOT as well as servicing cost.
Did you know that it’s not only mileage expenses you can claim? There are 16 expenses delivery drivers claim on a tax return, including vehicle cleaning costs, floor mats and phone holders.
Who can claim the 55p mileage rate?
The rate applies to any delivery drivers in the UK who use their own cars or vans to deliver food and parcels. It is also important to note that a mileage claim does not include the miles you cover to commute to your place of work.
For example, if you work for Amazon Flex and have to travel 5 miles to the depot to collect your parcels, those 5 miles could not be claimed.
Why has the 55p rate changed?
One of the main reason there has been change from 45p to 55p is the soaring cost of petrol and diesel, as well as the general increases in costs of running a vehicle such as servicing, insurance and maintenance.
How do I claim the 55p per mileage rate?
As a self-employed delivery driver, you can make a mileage claim when you complete your annual self-assessment tax return. The benefit of claiming mileage is that you do not have to submit individual fuel receipts.
If you are wondering, do I need to do a tax return? Generally speaking, if the pay you receive has not had income tax and National Insurance contributions deducted from it, then you will need to submit a tax return.
What’s the best way to do a mileage log?
It is important to keep a mileage log if you plan to claim the 55p per mile rate. This can be in a book or diary, or even a spreadsheet and include in formation such as:
- Date
- Business purpose/reason for travel
- Total miles
- Start and end locations of trip.
