Extra tax on delivery profit by salary
Income Tax and Class 4 National Insurance on the delivery profit only, for 2026/27 in England, Wales and Northern Ireland. Your job's own tax is taken through PAYE as normal.
| Delivery profit | Job pay £20,000 | Job pay £35,000 | Job pay £50,000 | Job pay £60,000 |
|---|---|---|---|---|
| £5,000 | £1,000.00 | £1,000.00 | £1,946.00 | £2,000.00 |
| £10,000 | £2,000.00 | £2,000.00 | £3,946.00 | £4,000.00 |
| £20,000 | £4,445.80 | £5,391.80 | £8,391.80 | £8,445.80 |
Look at £10,000 of profit: with a £35,000 job it costs £2,000.00 in tax, but with a £50,000 job it's £3,946.00, because most of it falls in the 40% band. Calculators that only ask "do you have a job?" can't see this and may badly understate the bill.
How it's worked out
- Add your job's gross pay and your delivery profit together.
- Work out Income Tax on the total, and on the job pay alone.
- The difference is the tax caused by your delivery profit.
- Add Class 4 National Insurance on the profit by itself.
This assumes your job's tax was taken correctly on a standard tax code. The Personal Allowance also shrinks if your total income goes over £100,000, which the calculator includes. Full details: how the calculator works.
Paying the bill
- Through your tax code: possible if you owe less than £3,000, already pay through PAYE and file online by 30 December (GOV.UK conditions).
- By 31 January: otherwise, pay the bill by 31 January after the tax year ends (deadlines).
- Payments on account: not needed if over 80% of your tax was collected through PAYE (rules). The calculator checks this for you.
Keep more of it
Because the delivery profit is taxed at your top rate, every pound of allowable cost saves you between 20p and 46p, depending on your rate. Make sure you're claiming the right expenses, and compare mileage rate vs actual costs. For low costs, the £1,000 trading allowance can be better, and the calculator picks it automatically.
Common questions
Why is my delivery profit taxed from the first pound?
Your job's pay uses your tax-free Personal Allowance first (£12,570 for most people). So none of it is left for your delivery profit, which is taxed at your next rate: 20%, or 40% once your total income passes £50,270.
Do I pay National Insurance twice?
Your employer takes Class 1 National Insurance from your wages. Separately, you pay Class 4 National Insurance on delivery profit above £12,570. The two are worked out independently; the job doesn't use up the Class 4 threshold.
Can HMRC take it through my tax code?
If you owe less than £3,000, already pay tax through PAYE and file online by 30 December, HMRC can collect the bill through your tax code over the next tax year instead of you paying in January.
Will I have to make payments on account?
Not if more than 80% of your total tax for the year was taken through PAYE, or if your Self Assessment bill is under £1,000. Otherwise HMRC usually asks for advance payments towards next year.
Do I need to tell my employer?
No. Your delivery income is reported through your own Self Assessment return. Check your employment contract if it has rules about second jobs.
Rates checked against GOV.UK on 31 October 2026.