Worker guides · For HGV drivers (employed and agency) · Last reviewed 2026-05-08

HGV driver payslip guide - basic, night-out, mileage

HGV driver pay structures vary widely between PAYE employees of haulage firms and agency drivers paid through umbrella companies. The deductions look different and the take-home calculation works differently.

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.

Basic and overtime

Basic hourly rate plus overtime at varying rates depending on contract. Night shifts often carry a premium. Confirm against your contract.

Night-out allowance

When you sleep in the cab on long-haul, employers pay a night-out allowance. HMRC has approved scale rates for tax-free allowances; amounts above those scale rates are taxable. Check whether your allowance is on or above the scale rate.

Mileage and expenses

Reimbursement of business mileage is normally tax-free up to HMRC's approved mileage allowance payments. Anything above is taxable.

Agency vs umbrella vs PAYE

Many agency HGV drivers are paid through umbrella companies, where the umbrella deducts employer NI from the assignment rate before paying you. The headline 'rate' from the agency therefore does not equal your gross pay. The /guides/audience/umbrella-vs-ltd-take-home-comparison page explains this in detail.

FAQs

Why does my umbrella payslip show smaller gross than the agency rate?

Umbrellas deduct employer NI, the apprenticeship levy, and sometimes a margin from the assignment rate before paying you. Your taxable gross is the net of those deductions. This is structurally why umbrella pay feels lower than equivalent PAYE pay at the same headline rate.