Invoicing as a self-employed delivery driver
Multi-drop and courier drivers are often paid by the day, by the route, or per parcel, sometimes with van hire or insurance deducted. Here's how to invoice clearly, check what you're paid, and keep records HMRC will accept.
On this page
First: are you really self-employed?
Many delivery roles are offered "self-employed", but your status depends on how the work actually happens: who controls your routes and hours, whether you can send a substitute, and who provides the van. GOV.UK's employment status pages explain the differences between employee, worker and self-employed, and HMRC's CEST tool can help. Worker status brings rights such as holiday pay and the minimum wage. If you're unsure, get advice before you sign.
How drivers are typically paid
- Day rate: a fixed amount per route day, sometimes with a different rate for a "rescue" or extra route.
- Per drop or per parcel: an amount for each successful delivery or collection.
- Per mile, for some same-day courier work.
- Mixed: a day rate plus per-drop extras, or fuel supplements.
Self-billing is common
Many delivery service partners and courier firms self-bill their drivers, which means they produce the invoice from their records. If so, don't send your own as well, but do keep your own log of routes, drops and miles and check every self-bill against it.
If you invoice yourself
Send one invoice per week, with a row for each day. A clear layout:
| Day & date | Route / depot | Description | Amount |
|---|---|---|---|
| Mon 05/10 | DHP4 – Route 12 | Full route day | £165.00 |
| Tue 06/10 | DHP4 – Route 12 | Full route day | £165.00 |
| Wed 07/10 | DHP4 – Route 9 | Full route day + rescue (22 drops @ £1.20) | £191.40 |
| Thu 08/10 | DHP4 – Route 12 | Full route day | £165.00 |
| Sat 10/10 | DHP4 – Route 3 | Full route day | £165.00 |
| Total | £851.40 | ||
Add the usual details: invoice number and date, your name and address, the client's company details, payment terms and bank details. See our invoice requirements guide.
Van hire, insurance and other deductions
Some firms deduct van hire, insurance, damage charges or uniform costs from your pay. These are usually shown on their self-bill or remittance. If you invoice yourself, don't net them off your invoice unless that's agreed. Invoice the full amount and let them show deductions on the remittance, so your income and costs are recorded separately. For tax purposes, your income is the gross amount, and the van hire and insurance are expenses.
Check that deductions match what you agreed in writing. Unexplained "damage" charges are a common cause of disputes.
Expenses and mileage
Self-employed drivers can claim allowable business expenses. For vehicles, you can usually either claim actual costs (fuel, insurance, repairs, hire, and so on, in proportion to business use) or use simplified expenses with flat mileage rates. You can't do both for the same vehicle. GOV.UK's simplified expenses page gives the current mileage rates and the rules. Travel between home and a permanent workplace is generally not claimable, but travel between delivery points is part of the job. Keep a mileage log either way.
Records to keep
- Every invoice or self-bill, plus remittances
- Route sheets or app screenshots showing drops per day
- Mileage log, fuel receipts, van hire and insurance documents
- Bank statements
GOV.UK says sole traders must keep records for at least 5 years after the 31 January submission deadline for the tax year.
Worked example: checking a week's self-bill
Using the week above, the invoice or self-bill should come to £851.40. Say a driver's own log shows 5 full route days at £165.00 (£825.00), plus a rescue route of 22 drops at £1.20 (£26.40). That is £825.00 + £26.40 = £851.40. If the firm's self-bill says £825.00, the £26.40 for the rescue drops has been left out. A log with day, route, drops and rate lets you find the difference in minutes.
Why gross income matters
Suppose the firm deducts £220.00 for van hire and £45.00 for insurance from the £851.40 week and pays you £586.40. Your income for tax is still £851.40, and the £265.00 is an expense you can claim if it is a genuine business cost. If you only record the £586.40 you receive, you would understate both income and costs. Keep the self-bill or remittance showing the deductions, and see how long to keep invoices.
Mileage and VAT notes
If you use your own vehicle, see the mileage allowance calculator for the current simplified expenses rates. Whether you have to register for VAT depends on your turnover, so check the current threshold on GOV.UK. Most delivery partners pay a flat amount that includes everything, so work out what you keep after costs before accepting a route. The day rate to hourly rate guide shows how to convert.
Frequently asked questions
Do delivery drivers need to send invoices?
Only if the firm doesn't self-bill. Many delivery firms self-bill, in which case you check their invoice instead of sending your own.
Should van hire be taken off my invoice?
Generally invoice the full amount and let the firm show the deduction separately. For tax purposes, your income is the gross amount and the van hire is an expense.
Can I claim mileage and fuel?
Not both for the same vehicle. Either claim actual vehicle costs or use simplified mileage rates. See GOV.UK for the rules.
Am I entitled to holiday pay?
Not if you're genuinely self-employed. If you're actually a worker, you may be, so check your employment status.
What should I record each day as a delivery driver?
The date, route or depot, number of drops, any rescue or extra routes, miles and the amount you expect. You can then check it against the firm's self-bill.
Is my income the amount paid to my bank?
No. For tax it is the gross amount before deductions such as van hire. The deductions are separate expenses if they are genuine business costs.
Sources
- Employment status – GOV.UK
- Simplified expenses: vehicles – GOV.UK
- Expenses if you're self-employed: travel – GOV.UK
- Business records if you're self-employed – GOV.UK
This guide is general information, not legal, tax or financial advice. Rules and rates change, so check the linked GOV.UK pages for the current position.