📦 Courier & Gig Economy · 2026/27 Tax Year

Delivery Driver Tax & Pay Explained

Drive for Evri, DPD, or Amazon Logistics? Learn how to read your remittance advice, claim massive expense write-offs, and calculate your January HMRC tax bill.

The "Remittance Advice" Trap

If you have just started as a courier for Evri, DPD, DHL, or Amazon Logistics, your first "payday" might come as a shock. You will not receive a standard payslip. You will not see a tax code (like 1257L), and you will not see deductions for Income Tax or National Insurance.

Instead, you receive a Remittance Advice. This is effectively an invoice showing how much the company is paying you for the services you provided (usually calculated as a day rate or a rate per parcel dropped).

Because you are classed as a Self-Employed Contractor (or a "Self-Employed Plus" courier), you are receiving 100% of your gross earnings. However, this money is not all yours to keep. You are legally required to file a Self Assessment tax return and pay your own tax bill to HMRC every January.

The 25% Rule

Many new couriers spend all their earnings, only to be hit with a £3,000+ tax bill in January that they cannot pay. The golden rule of being a self-employed delivery driver is to open a secondary savings account and instantly transfer 25% to 30% of your profit into it every time you get paid.

Allowable Expenses: The Tax Hack

The biggest advantage of being a self-employed courier is that you can claim Allowable Business Expenses. You do not pay tax on your total income; you only pay tax on your Profit (Income minus Expenses).

To dramatically lower your January tax bill, you should track and deduct the following expenses:

Vehicle Costs: Your van lease or rental payments, MOT, servicing, and repairs.
Fuel or Mileage: You can either claim the exact cost of your diesel/petrol OR use HMRC's simplified mileage rate (45p per mile for the first 10,000 miles, 25p thereafter). You cannot claim both.
Insurance: Expensive "Hire and Reward" courier insurance and Public Liability insurance.
Mobile Phone: The business-use percentage of your mobile phone contract and data plan (essential for routing and delivery apps).
Equipment: High-vis jackets, steel-toe boots, and dashcams.

Delivery Driver "Save For Tax" Calculator

Average Weekly Gross Earnings (e.g. Evri drops / DPD day rate)

Average Weekly Van & Fuel Expenses

The Golden Rule

You should save 13.6% of your profit, which is £75 every single week, to pay your January HMRC Self Assessment.

Annual Breakdown (assuming 48 weeks worked)

Gross Income£36,000

Allowable Expenses-£9,600

Taxable Profit£26,400

Income Tax-£2,766

Class 4 Nat. Insurance-£830

HMRC Tax Bill£3,596

Frequently Asked Questions

Frequently asked questions

Why don't I get a standard payslip from Evri or DPD?

Because most delivery couriers (working for Evri, DPD, Amazon Logistics, or DHL) are classed as Self-Employed independent contractors. You do not get a PAYE payslip with a tax code. Instead, you receive a 'remittance advice' or invoice detailing the parcels you delivered and the gross amount they are paying you.

Do delivery drivers have to pay their own tax?

Yes. Because you are not an employee, Evri and DPD will not deduct Income Tax or National Insurance from your pay. You are responsible for registering for Self Assessment and paying your own tax bill to HMRC in January.

What expenses can a self-employed courier claim?

You can deduct business expenses from your gross income to lower your tax bill. Allowable expenses include your van lease/rental costs, fuel, 'Hire and Reward' vehicle insurance, maintenance, public liability insurance, and the business use percentage of your mobile phone.

How much of my delivery earnings should I save for tax?

As a golden rule, you should save 25% to 30% of your profit (earnings minus your allowable expenses) into a separate bank account to cover your HMRC Self Assessment tax bill.