Money Tools for UK Delivery Drivers in 2025
Staying on top of invoices, mileage, and taxes is just as important as smashing your delivery targets. This guide rounds up the essential money tools UK couriers use to save time, track expenses, and stay compliant with HMRC. Pick the tools that fit your workflow and get back to earning.
1) Invoicing & Accounting (Self-Assessment Ready)
- FreeAgent (often free with certain UK business banks)
- Best for: Sole traders and small businesses who want simple invoicing, expense capture, and Self Assessment support.
- Why drivers like it: Clean mobile app, bank feeds, automated invoicing reminders, and solid reports. Frequently included at no extra cost with Mettle and some NatWest Group accounts (check eligibility).
- 🔗 FreeAgent | 🔗 Free with Mettle (check offer)
- Xero
- Best for: Those who want powerful integrations and multi-category tracking.
- Highlights: Bank feeds, expense capture, quotes/invoices, VAT returns (if registered), strong ecosystem of add-ons.
- 🔗 Xero UK
- QuickBooks Online
- Best for: Users who prefer QuickBooks’ interface and reporting.
- Highlights: Invoicing, expenses, mileage (built-in tracker), cash-flow dashboards.
- 🔗 QuickBooks UK
2) Mileage Tracking (HMRC-Compliant)
- HMRC Approved Mileage Rates (2025/26)
- Cars/Vans: 45p per mile for first 10,000 business miles; 25p thereafter.
- Motorcycles: 24p per mile (flat).
- Bicycles: 20p per mile (flat).
- Passenger payments (cars/vans): 5p per business mile per passenger (if it’s their work journey too).
- Recommended Apps
- Driversnote – automatic trip logging, HMRC-style reports. 🔗 Driversnote
- MileIQ – auto-detection, quick swipe to classify trips. 🔗 MileIQ
- Everlance – mileage + expense tracking combined. 🔗 Everlance
3) Budgeting & Banking
- Monzo / Starling (Personal or Business)
- Best for: Pots/Spaces for tax savings and expenses; real-time alerts; easy exports.
- Driver tip: Create separate “Tax” and “Fuel” pots; move a % of each payout automatically.
- Tide (Business)
- Best for: Simple business account with built-in invoicing and expense tools.
- Driver tip: Issue quick invoices if you do local contracts (restaurants, shops, catering).
- Mettle (Business)
- Best for: Free UK business account with FreeAgent included (eligibility applies).
- Driver tip: Pair banking + accounting from day one for cleaner records.
4) Tax Timeline & Key Thresholds (Snapshot)
- Self Assessment filing deadlines
- Paper return: 31 October (following the tax year).
- Online return + balancing payment: 31 January.
- Payments on Account (if required): 31 January and 31 July.
- VAT registration threshold
- Standard threshold: £90,000 rolling 12-month taxable turnover (from April 2024, unchanged for 2025/26 at time of writing). Consider voluntary registration if fuel/gear VAT recovery helps.
- National Insurance (self-employed)
- Class 2: no longer due for most from April 2024/25 (credits still apply if profits above the small profits threshold; voluntary Class 2 possible below it).
- Class 4: typically 8% on profits between main thresholds; 2% above (check current year rates before filing).
Quick Comparison Table – Money Tools
| Tool | Best For | Standout Features |
|---|---|---|
| FreeAgent | All-in-one bookkeeping | Invoicing, expenses, bank feeds, Self Assessment support; often free with Mettle/NatWest Group |
| Xero | Scalable accounting | Strong app ecosystem, VAT returns, robust reporting |
| QuickBooks Online | Integrated mileage + accounts | Built-in mileage tracking, cash-flow dashboards |
| Driversnote / MileIQ / Everlance | HMRC-compliant mileage | Automatic trip logging, simple categorisation, exportable reports |
| Monzo / Starling / Tide / Mettle | Banking & budgeting | Pots/Spaces, real-time alerts, easy exports; Mettle includes FreeAgent (eligibility) |
How to Use These Money Tools Together
- Daily: Track mileage automatically; snap receipts after each fuel or gear purchase.
- Weekly: Reconcile bank transactions; move a set % of income to a “Tax” pot.
- Monthly: Send invoices (if applicable), review profit, and download a mileage/expense report.
- Quarterly (if VAT-registered): Check VAT position; file returns on time.
- Year-end: Confirm HMRC rates/thresholds; file Self Assessment by 31 January.
Related Articles
- Tracking Your Income & Expenses – A Simple System
- Mileage Tracking for Couriers – Step-by-Step
- Taxes & National Insurance for UK Delivery Drivers
Final Tip
Pick one accounting app and one mileage app today, connect your bank feed, and create a “Tax” savings pot. These money tools will pay for themselves by saving time, preventing mistakes, and reducing stress at tax time.