Courier Tax Guide UK
As a self-employed courier in the UK, you are responsible for paying your own Income Tax and National Insurance via Self Assessment. Understanding what expenses you can claim is essential to keeping your tax bill as low as legally possible.
Registering as Self-Employed
You must register with HMRC as self-employed within 3 months of starting courier work. Do this via the HMRC website. You will then receive a Unique Taxpayer Reference (UTR) and need to file a Self Assessment tax return every year by 31 January.
Allowable Expenses
Fuel is your biggest deductible cost. You can claim the actual cost of fuel, or use HMRC's approved mileage rate (45p per mile for the first 10,000 miles, 25p after). Other claimable expenses include insurance, vehicle maintenance, phone bills (business use proportion), and any equipment used for deliveries.
2024/25 Tax Bands
Personal allowance: £12,570 (0% tax). Basic rate: £12,571–£50,270 (20%). Higher rate: £50,271–£125,140 (40%). You also pay Class 4 NI at 9% on profits between £12,570 and £50,270. Set aside 25–30% of gross earnings to cover tax and NI.