If you drive for platforms like Amazon Flex, Uber, Bolt or Deliveroo, tracking your business mileage is one of the simplest ways to reduce your tax bill.
Many self-employed drivers either forget to log their miles or don't realise they can claim them at all. Over a full tax year, this deduction can be worth thousands of pounds.
The Simplified Mileage Method
HMRC allows self-employed drivers to claim a flat rate per business mile instead of calculating actual vehicle costs such as fuel, insurance and repairs.
The current mileage rates are:
- 45p per mile for the first 10,000 business miles in a tax year
- 25p per mile for every mile after 10,000
Example
If you drive 15,000 business miles in a year:
(10,000 × £0.45) + (5,000 × £0.25) = £5,750
This means £5,750 is deducted from your taxable profit.
Depending on your tax bracket, that could reduce your tax bill by over £1,000.
What Counts as a Business Mile?
A business mile is any journey made for work purposes.
For drivers working with delivery or ride-share platforms, this usually includes:
- Driving to your first pickup or delivery
- Miles driven between deliveries or rides
- Driving home after your last job
- Trips to depots or pickup locations (for example Amazon Flex blocks)
Travel to a permanent workplace normally does not count. However, most self-employed drivers working through platforms do not have a fixed workplace, so this rule rarely applies.
What Records Does HMRC Expect?
HMRC requires drivers to keep a record of their business journeys. A proper mileage log should include:
- The date of the journey
- Start and end mileage (or total miles driven)
- The purpose of the trip
- The start and end locations (recommended)
If you estimate your mileage instead of recording odometer readings, you must clearly state that it is an estimate. HMRC may treat estimated records differently during an enquiry.
Tips for Keeping Accurate Mileage Records
The easiest habit is to record your mileage at the start and end of every shift. It only takes a few seconds and ensures your records stay accurate.
If you forget to log a trip, you may be able to reconstruct it using your delivery or ride history, but this should only be a backup rather than your main tracking method.
The Bottom Line
For many self-employed drivers, mileage is the single biggest tax deduction available. Tracking it properly can significantly reduce your tax bill and keep you compliant with HMRC requirements.