HGV Driver Net Pay Calculator

HGV Class 1 vs Class 2 Salaries

The distinction between Class 1 (C+E license) and Class 2 (C license) is the primary driver of salary variance in the UK haulage sector. Class 1 drivers operate articulated lorries often exceeding 40 tonnes, requiring higher skill levels for reversing and maneuvering, and typically covering longer distances.

Class 1 (C+E)

In 2026, a Class 1 driver can expect a base salary between £32,000 and £42,000 for standard general haulage (Monday to Friday). However, this can rise significantly to £45,000 - £50,000+ for:

• Tramping: Drivers who sleep in the cab all week.
• Supermarket Logistics: often entails unsociable hours and weekend work.
• Heavy Haulage: Moving abnormal loads.
• ADR Tankers: Fuel and chemical transport.

Class 2 (C)

Class 2 drivers typically drive rigid vehicles over 7.5 tonnes. This role is often associated with multi-drop deliveries, pallet networks, or tipper work. The physical demand can be higher due to the nature of multi-drop (loading and unloading), but the driving complexity is generally considered lower than articulation.

Salaries for Class 2 drivers in 2026 range from £28,000 to £38,000. While the gap between Class 1 and 2 has narrowed slightly due to universal driver shortages, a Class 1 license remains the gold standard for maximum earning potential.

Agency vs. Employed: The IR35 Factor

Historically, many HGV drivers operated as Limited Companies (PSCs), allowing them to pay lower taxes and claim extensive expenses. However, the IR35 reforms in the private sector have fundamentally changed this.

Employed (PAYE)

Most major logistics contracts now require drivers to be PAYE, either directly employed by the haulier or through an agency's payroll.
Pros: Employment rights, holiday pay, sick pay, pension contributions, job security.
Cons: Lower immediate take-home pay compared to the old Ltd company model, less flexibility.

Agency (Umbrella/PAYE)

Agency drivers often command a higher hourly rate to compensate for the lack of guaranteed hours and benefits. In 2026, agency rates for Class 1 can hit £18.00 - £24.00 per hour. However, if working through an Umbrella company, drivers must be wary of "assignment rates" which include the employer's NI contributions and holiday pay, meaning the actual rate is lower than the headline figure.

Allowances and Premiums

To calculate true take-home pay, one must look beyond the base salary. Allowances are a critical component of an HGV driver's remuneration package.

Night Shift Premium

Driving through the night is arduous and disrupts work-life balance. Consequently, night drivers typically receive a premium. This is usually structured as either:

• Hourly uplift: Typically £1.50 to £3.00 extra per hour.
• Shift Allowance: A fixed sum (e.g., £15-£20) per shift.
• Percentage: 15% to 25% on top of the base rate.

Overnight Allowance (Subsistence)

For trampers or drivers caught out away from base, the "Night Out" allowance is vital. HMRC sets a benchmark scale rate (typically around £26.20 per night in 2026) which can be paid tax-free. This is intended to cover the cost of dinner and breakfast. Over a week (4 nights out), this adds over £100 of tax-free income to the pay packet, which is equivalent to earning an extra £140+ in taxable gross pay.

Salary Breakdown Examples (2026 Estimates)

Below are detailed breakdowns of what various annual salaries look like in terms of weekly and monthly take-home pay. These calculations assume a standard tax code (1257L) and Class 1 National Insurance.

Note: These figures are for illustration. Pension contributions (usually 3-5%) will reduce these net figures slightly, but increase long-term savings.

The Driver Shortage: 2026 Status

The "driver shortage" narrative has shifted. While the panic buying and empty shelves of previous years have subsided, the demographics of the workforce remain a challenge. The average age of an HGV driver is still high (50+). As older drivers retire, there is a constant need for new blood. This structural deficit ensures that HGV driver wages remain resilient against inflation compared to other low-barrier-to-entry professions.

Furthermore, the cost of entry (training, medicals, CPC) acts as a gatekeeper, ensuring that those who do qualify can command a premium. In 2026, companies are focusing more on retention—offering better facilities, newer trucks, and fixed shift patterns—rather than just raw salary wars.

Specialist Licences: ADR & HIAB

Drivers looking to break the £50k ceiling often turn to specialisation.
ADR (Hazardous Goods): Transporting chemicals, fuel, or explosives. Requires a rigorous 5-year refresher course. The responsibility is high, but so is the pay.
HIAB (Lorry Loader): Cranes mounted on trucks (often building merchants). This requires a separate certification and involves more physical work operating the crane, but offers variety and often better hours.