Self-Employed Courier Tax UK 2026

As a self-employed courier you are responsible for paying your own Income Tax and National Insurance through Self Assessment. The 2025/26 tax year rules apply — here is everything you need to know to stay compliant and pay no more than you owe.

Key 2025/26 Tax Figures

Personal Allowance: £12,570 (tax-free). Basic rate (20%): £12,571–£50,270. Higher rate (40%): £50,271–£125,140. Class 4 NI: 9% on profits between £12,570 and £50,270, then 2% above. Class 2 NI: abolished from April 2024. Self Assessment deadline: 31 January 2026 for online returns.

Allowable Expenses You Can Claim

Fuel (actual cost or HMRC mileage rate of 45p/mile up to 10,000 miles, 25p after). Hire-and-reward insurance. Vehicle maintenance, tyres, servicing. Mobile phone (business-use proportion). Parking and toll fees incurred during work. Work clothing (uniforms, hi-vis, safety boots). Accountancy fees.

How Much to Set Aside

A useful rule: set aside 25% of every payment you receive. At a £30,000 profit level, your total tax and NI bill is roughly £5,500 — about 18%. Setting aside 25% gives you a comfortable buffer for the payment on account due in July, and means you'll never be caught short at Self Assessment time.

Related Resources

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