Tax when you have a PAYE job as well
You get one personal allowance across all your income, and your job has usually used it. That means delivery profit is often taxed from the first pound, at whatever band your total income reaches. You file one return covering both, and you do not pay twice.
Correct for the 2026/27 tax year. Last checked 12/09/2026.
This is the most common gig driving situation and the one with the most confused folklore around it. The rules are simple; the arithmetic is just less forgiving than people expect.
One allowance, all income
The personal allowance is £12,570, once, across everything you earn. A job paying more than that has used all of it. So the delivery profit sits on top and is taxed from the first pound.
| Line | Amount |
|---|---|
| Salary from the job | £24,000.00 |
| Delivery profit after mileage | £4,200.00 |
| Total income | £28,200.00 |
| Tax already paid through PAYE | On the salary, correctly |
| Income tax due on the delivery profit | £840.00 at 20% |
| Class 4 at 6% on the delivery profit | £252.00 |
| Due through Self Assessment | £1,092.00 |
So roughly 26% of the delivery profit, not of the delivery turnover. Turnover was considerably higher; the mileage claim is what turned it into £4,200.00.
What people expect and why they are wrong
- "I get another tax-free allowance for the second income." No. One allowance, one person.
- "Second jobs are taxed at a penalty rate." No. Your total income is taxed at the normal bands. A BR tax code on a second employment looks like a penalty and is simply the allowance being used elsewhere.
- "I will be taxed twice on the same money." No. The return takes account of the tax already paid through PAYE and only asks for the difference.
Getting it collected painlessly
File online by 30 December, owe less than £3,000, and already pay through PAYE, and HMRC can collect the bill through next year's tax code in twelve monthly slices instead of one payment on 31 January. For a part-time driver that is usually the easiest route, and the deadline for it is a month earlier than the filing deadline, which catches people out.
What to set aside
Because there is no allowance left to shelter it, a part-time driver should budget a higher share of profit than a full-time one. Basic rate income tax plus Class 4 is a reasonable starting point, and budgeting for a tax bill covers the mechanics.
Putting the job into JoltMile
Add the job under Other income as "A job (PAYE)", one entry per payslip, with the gross pay and the tax taken off it. JoltMile then works the year out the way the table above does: the wages use up the allowance, the driving profit is taxed on top, Class 4 is charged on the driving only, and the PAYE tax already paid comes off at the end. What is left is the figure to set aside.
Leave the personal allowance switched on in Settings when you do this. The wages already use it, and switching it off as well would take it away twice. See other income and PAYE.
Sources
Common questions
- Do I pay more tax because I have two sources of income?
- No. You pay tax on your total income at the normal rates. What changes is that the £12,570 personal allowance is used at the job, so the delivery profit is taxed from the first pound, at 20% for a basic rate taxpayer, rather than getting its own tax-free band.
- Does my employer find out?
- Not from HMRC, and not from the return. If you ask for the bill to be collected through your tax code, your code changes and the amount deducted changes, but the reason is not disclosed to the employer.
- Can the bill be taken through my tax code?
- Yes, if you owe under £3,000, file online by 30 December and already pay tax through PAYE. HMRC then collects it across the following year rather than in one payment.
- Do I still need to register as self-employed?
- Yes, if the delivery turnover was over £1,000. Having a job makes no difference to that test.
- What about National Insurance?
- Class 1 through the job and Class 4 on the profit. There are annual maximum rules that can cap the total where both are substantial, so it is worth checking if your combined income is high.
About the author
Issac Davies, Founder of JoltMile
Issac Davies drives for gig apps in the UK and built JoltMile to show drivers what a shift actually pays once fuel, insurance and tax come off. Every guide here is checked against HMRC and gov.uk guidance, and is information rather than tax advice.
Track this automatically
Estimated tax · Other income: the JoltMile app works this out from your own shifts. Your first 10 shifts are free.
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