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Tax, mileage & admin tools

What HMRC actually wants from a self-employed van driver, and the tools that make it painless.

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The basics, in plain terms

Most owner-drivers operate as sole traders. You'll need to register as self-employed with HMRC, file a Self Assessment tax return each year, and pay Income Tax and National Insurance (Class 2 and Class 4) on your profit — not your total earnings.

You can either claim actual vehicle expenses (fuel, insurance, repairs, finance interest, apportioned for business use) or use HMRC's simplified mileage rate: 45p per mile for the first 10,000 business miles each tax year, then 25p per mile after that. Pick one method per vehicle and stick with it.

VAT registration is only required once your taxable turnover passes £90,000 in a rolling 12-month period — most single-van operators stay under this, but it's worth checking every quarter if you're close.

45pMileage rate, first 10,000 miles
25pMileage rate after 10,000 miles
£90,000VAT registration threshold
Not tax advice Rules and thresholds change with each Budget. This page is a starting point, not a substitute for HMRC guidance or a qualified accountant — check gov.uk for current rates before you file.
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Accounting & mileage tools

ToolPriceMileage auto-trackingSelf Assessment ready
LedgerRoute£9/moYesYesTry free →
SoleBooks£6/moNoYesTry free →
MileMarker£4/moYesExport onlyTry free →

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