Have checked the forum, would seem the last post that delved into this subject was in 2017…a lot has happened since.
Wanted to get the pulse of the online forum members who are working as Ltd. I was asked by a recruiter if I had considered going LTD. I said I haven’t thought about it, but now she suggested it I am doing some digging around on the matter.
Currently working in Container Freight, tramping out of Southampton.
Getting a bit fed up with doing 60+ hrs a week for poor money.
Can anyone advise me on whether (in the current climate) going LTD would be of any benefit?
Also if anyone can recommend an accountant who specialises in LTD drivers and any other good sources of info?
Since April last year hardly any firms will will touch a Ltd driver. If HMRC consider you don’t meet the criteria to being in control of what you are doing the customer will get the tax liability.
I like most Ltd drivers had to go over to PAYE, the ones who said they would work elsewhere as Ltd ended up coming back as PAYE. There was little or no work for them. Some of the small hauliers still use them but it’s getting less.
Stick to PAYE and don’t go umbrella or you will be worse off. Ltd drivers is over now.
Absolutely as above about Ltd driving. The Co that are still doing it, are probably not the Co you want to work for anyway.
If in doubt, have a look at the HMRC NEST test and see if they class you as employee.
No argument with the above comments.
But I think Acorn made a typo? HMRC CEST test?
Plug in your own details accurately and see if you will be classed as an employee or not. gov.uk/guidance/check-emplo … us-for-tax
Franglais:
No argument with the above comments.
But I think Acorn made a typo? HMRC CEST test?
Plug in your own details accurately and see if you will be classed as an employee or not. gov.uk/guidance/check-emplo … us-for-tax
I don’t think you even need to go that far. Before you start the test, the page advises you to check to see if they’ve already assessed your job type. Follow their link and you’ll find that driving jobs have already been assessed, and if you drive a vehicle owned, maintained and insured by the company you are working for then you are an employee.
I’m not a tax law expert and I’m sure IR35 has its benefits……but it does seem like these changes have made it harder for people to build businesses from the ground up. Particularly if you don’t have a lot of start up Capital.
No wonder we see large groups like Culina, DHL mopping up all the contracts and work.
Being a LTD driver for someone else allowed you to build up that business history and get started.
Franglais:
No argument with the above comments.
But I think Acorn made a typo? HMRC CEST test?
Plug in your own details accurately and see if you will be classed as an employee or not. gov.uk/guidance/check-emplo … us-for-tax
I don’t think you even need to go that far. Before you start the test, the page advises you to check to see if they’ve already assessed your job type. Follow their link and you’ll find that driving jobs have already been assessed, and if you drive a vehicle owned, maintained and insured by the company you are working for then you are an employee.
I’m not a tax law expert and I’m sure IR35 has its benefits……but it does seem like these changes have made it harder for people to build businesses from the ground up. Particularly if you don’t have a lot of start up Capital.
No wonder we see large groups like Culina, DHL mopping up all the contracts and work.
Being a LTD driver for someone else allowed you to build up that business history and get started.
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AlexChase1980:
Thanks for the tips,
I’m not a tax law expert and I’m sure IR35 has its benefits……but it does seem like these changes have made it harder for people to build businesses from the ground up. Particularly if you don’t have a lot of start up Capital.
No wonder we see large groups like Culina, DHL mopping up all the contracts and work.
Being a LTD driver for someone else allowed you to build up that business history and get started.
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IR35 came about because such a lot of people were saying they were a limited liability company when in effect they were a driver working for the same company. They got their wages paid gross, and were supposed to pay their own paye tax and NI, but in effect they didn’t. Particularly if they had a none UK bank account.
The companies they worked for saved paying employers NI and employers liability insurance. It was all a big tax fiddle, no wonder they clamped down on it.
I’ve ZERO interest in going LTD but just a question:
Does it make any difference going LTD ref HMRC if you work as a driver across several companies during the tax year rather than just the same one all year■■?
Big Truck:
I’ve ZERO interest in going LTD but just a question:
Does it make any difference going LTD ref HMRC if you work as a driver across several companies during the tax year rather than just the same one all year■■?
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It’s actually good as far as HMRC is concerned for a Ltd Co to work for several companies, it is more likely to show that the driver is less of an employee, albeit, the same test should be made for each company, and usually that will say ‘employee’.
The more you look at it, if a person only provides the service to the same company week after week as a driver, then it is hard to say they can be anything other than an employee
Big Truck:
Does it make any difference going LTD ref HMRC if you work as a driver across several companies during the tax year rather than just the same one all year■■?
If you work as a driver:
As I read it, you would likely be an employee of more than one company.
If you do more than work as a driver maybe you would be somehow a Contractor?
If you are responsible for scheduling, supplying other staff if you are sick or on holiday, or whatever, maybe you are contracting.
Having more than one job doesnt make any difference. Work as bar staff, or cleaner, in two different pubs and three different offices, for four different agencies, youre still employed.
There is no element of choice in your “classification”.
Follow the rules closely and you will either be an employee or not.
I’m an owner driver with my own limited co holding the o licence. In the past, if the truck has been off the road, have driven for one of my customers and invoiced them from my company. Have taken advice, and have now been told, that HMRC would classify me as an employee for the days I drive my customers truck, so they should put me on the books for that day. Now I just have the time off, as not worth the hassle.
