Agency PAYE vs umbrella: what an HGV driver really takes home

Two agencies can quote you the same hourly rate and still leave you with different money at the end of the week. The difference is usually how you're paid.

Agency PAYE

The agency employs you for each assignment and runs your pay through its own payroll. You pay normal income tax and National Insurance. The agency pays employer costs on top, so the rate you're quoted is close to your gross pay.

Umbrella company

The agency pays an assignment rate to an umbrella company, which then employs you. Before you see a penny, the umbrella takes out:

• employer's National Insurance (15% above the threshold)
• the apprenticeship levy (0.5%)
• its own margin, often around £20–£30 a week

So an umbrella rate needs to be noticeably higher than a PAYE rate just to come out the same. Always ask: is that the PAYE rate or the umbrella rate?

Compare the two properly

Put both into the take-home calculator with the same hours. It shows the umbrella deductions line by line.

What other drivers are actually getting

Advertised ranges like "£18–£35 an hour" don't tell you much. See what drivers report for real, or add your own rate anonymously.

General information, not tax advice. Check your payslip and the agency's key information document.