Post Updated: January 17th 2023
Understand what allowable expenses a Deliveroo Rider can claim in their tax return.
Lets face it, we all wish we could reduce the amount of tax we pay. One of the advantages of being a Self-employed deliveroo rider means that you can off set costs you have to pay for to do you job against your income, reducing the amount of tax you pay.
Expenses are products or services which you need to pay for in relation to the work you do for Deliveroo, Ubereats or Justeat, allowing you to carry out that work. HMRC has rules about what you can claim for (known as Allowable Expenses) and those you can’t (Disallowable Expenses).
Below is a list of expenses you can claim for depending on whether you do deliveries on a bicycle, scooter/motorcycle or car.
WARNING: some expenses cannot be claimed for from this list due to personal circumstances. It is strongly suggested you speak to an accountant due to HMRC’s strict rules which apply to certain tax write offs mentioned below. Failure to correctly file a tax return may result in investigation by HMRC. Speak to UGO TAX.
Allowable Expenses | Cyclist | Motorcycle | Car |
Maintenance Fees (Brake pads, tyres etc) | Yes | yes | yes |
Parking Charges | yes | yes | yes |
Service Charges from Deliveroo,Ubereats or Justeat | yes | yes | yes |
Helmet | yes | yes | no |
Motorcycle gloves, jackets and trousers | no | yes | no |
Mobile phone, holder and data allowance | yes | yes | yes |
Insurance | no | yes | yes |
Accountant fees | yes | yes | yes |
Bank Charges for bank account | yes | yes | yes |
Deliveroo, Ubereats Justeat kit | yes | yes | yes |
Thermal bags | yes | yes | yes |
Mileage Allowance (see details below about Mileage Allowance) | yes | yes | yes |
MOT | no | yes | yes |
Food Allowance at £5 per day | yes | yes | yes |
Deliveroo Ubereats and Justeat Commissions and service charges | yes | yes | yes |
Below is a list of expenses you cannot claim for.
Disallowable Expenses | Cyclist | Motorcycle | Car |
Parking Fines | no | no | no |
Penalty Charge Notices (PCN) | n/a | no | no |
Self-assessment interest and penalties | no | no | no |
Can I claim a mileage allowance as an expense as a delivery driver?
You can claim a mileage allowance which means for every mile you cover you can claim 45p per mile up to 10,000 miles. 10,000+ miles are 25p per mile. however you cannot claim for petrol and maintenance charges so it is advisable to speak to an accountant to work out what is better. In some cases it is better to claim as mileage allowance as this reduces the amount of tax that might be due.
Now that you understand what allowable expenses a Deliveroo Rider can claim in their tax return, i recommend you read my post on Deliveroo, Ubereats or Justeat: which pays the best in the UK in 2021.
If you need help with registering as self employed or need to file a tax return we recommend you contact Ugo Tax.
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