What's on an HGV Driver's Payslip?
An HGV payslip has more potential line items than most other sectors. Understanding each one protects your take-home and ensures you're not being underpaid.
Basic Pay
Your contractual hourly rate × hours worked (or days worked if you're on a day-rate). Fully taxable. Should never fall below the NMW (£12.71/hr for 21+), which effectively only applies to Class 2 drivers in low-paying depots.
Overnight Subsistence Allowance (Tax-Free)
HMRC allows employers to pay lorry drivers a tax-free subsistence allowance for nights away from home. The 2026 rates under HMRC EIM66110 are:
- Sleeper cab rate: £26.20 per night tax-free + NI-free
- Hotel / B&B rate: £34.90 per night tax-free + NI-free
This allowance must be shown separately on your payslip. If your employer pays it as part of your basic rate and does not separate it, you may be overpaying tax. Ask your payroll department to break it out correctly.
WTD Premium / Overtime
If your hours exceed your contracted amount, any additional pay should appear here. Remember: the Road Transport Working Time Directive caps average weekly hours at 48 over 17 weeks. Hours above your contract are taxable as normal earnings.
Night / Unsocial Hours Premium
Many depots pay a premium (typically 15–25% above basic rate) for working between 22:00 and 06:00. This is fully taxable and subject to NI, but it's a valuable addition — a Class 1 driver on £18/hr working predominantly nights could earn £21–£22.50 effective hourly including the premium.
Holiday Pay
Employed HGV drivers are entitled to a minimum of 5.6 weeks' paid holiday per year. Holiday pay should be calculated on your average pay over the previous 52 weeks — including regular overtime and premiums, not just your basic rate. This is a common error. Agency workers' holiday pay should appear as a separate line item (often "rolled-up holiday pay" — though strictly speaking, this should be paid separately as you take holidays).
Agency vs Directly Employed — Key Differences
- Agency PAYE: Tax and NI deducted by the agency. Higher gross hourly rate. No employer sick pay guarantee. Holiday pay must be paid separately or as a clearly identified element.
- Directly employed: Lower hourly rate typically, but includes sick pay, employer pension contribution, stable hours. Some employers offer company vehicle perks and CPC training funding.
- Umbrella company: From 6 April 2026, the agency bears joint liability for PAYE compliance when umbrella companies are used. Ensure your umbrella is legitimate — check the HMRC list of published non-compliant schemes.
Driver CPC — Can I Claim the Cost?
The Driver CPC requires 35 hours of periodic training every 5 years. If you pay for this training yourself and your employer doesn't reimburse it, you can claim tax relief via a P87 form (available free at gov.uk). A basic-rate taxpayer spending £500 on CPC training gets £100 back from HMRC.