HMRC
HMRC guides for UK courier operators
HMRC guides for courier operators are a directory, not a tax article. Start with the contract. IR35 and National Insurance follow the tax status. Self-billing follows only when both sides are VAT registered and a written agreement exists. Worker status is a different question, and VAT registration has its own official page.
Where to read each rule
Open the HMRC or GOV.UK page for the rule, then the Zerity page that says what a depot files. Rates and thresholds change. Use the official page for the current figure.
| Question | Read this first | Zerity page |
|---|---|---|
| Does off-payroll working apply to this engagement? | Understanding off-payroll working (IR35) (GOV.UK) | IR35 for couriers |
| Which National Insurance follows the tax status? | Self-employed National Insurance rates (GOV.UK) | National Insurance for self-employed couriers |
| Can the depot raise the driver's VAT invoice? | Self-billing (VAT Notice 700/62) (GOV.UK) | HMRC self-billing for couriers |
| When must the business register for VAT? | VAT registration (GOV.UK). Confirm the threshold on that page. | Not published. A Zerity VAT guide is planned and is not this page. |
| Is the person a worker for employment rights? | Employment status (GOV.UK) | Employment status for self-employed couriers |
Self-billing, only the condition
HMRC's short guide, VAT: self-billing arrangements (GOV.UK), says both the customer and the supplier must be VAT registered. You need a signed agreement before any self-billed invoice. The supplier agrees not to issue their own VAT invoice for the same supplies, and agrees to say at once if they stop being registered, change their VAT number, or transfer the business. The agreement needs an expiry date, which can be the end of the contract. Without that agreement the invoice is not a valid VAT invoice.
HMRC's internal manual VATREC15010 records that, since 1 January 2004, prior approval from HMRC has not been required where the conditions in the VAT regulations and Notice 700/62 are met. The full courier explanation is the self-billing guide linked above. The product that holds the agreement next to the pay run is self-billing agreement software.
What Zerity does not file
Zerity can hold the self-billing agreement and run the pay. The VAT return is still filed with HMRC by the business or its adviser. Zerity does not decide IR35 status and it does not decide employment status. Those are separate readings of the same contract.
Clients who are responsible for off-payroll working should also read Off-payroll working for clients (GOV.UK). Return to the fleet compliance library.
Reviewed 25 September 2026. Figures and duties below are taken from the official pages linked here. Read the live page before you rely on a date.