A rather dodgy sounding set up that promises lots but, in reality could deliver nothing.
Setting up as Ltd which really isn’t as easy as clicking three or four check boxes on a computer screen.
Reading responses from the greater number on here who don’t reccomend you do it.
Reading yet another debate (do a search here about Ltd comapny) about the legalities and technicalities of Ltd company status.
our survey said eh-uh
There’s nothing dodgy about it. Every company starts from some where. Start small and expand. We’ll just have to wait and see of the outcome. I’ll keep everyone updated.
It is as dodgy as hell, most companies start up with enough capital in place to at least recruit the necessary staff, the chancer you are looking to work for ain’t even got that, the failure rate for the haulage industry runs at over 50% within the first 4 years, no doubts this cowboy will fall firmly in this camp.
Trucker-Millward:
I’m 29, I want to go from £11.50 an hour to £18.50 with this new job. You work it out.
Things change all the time. Can’t not better myself because somethings changing in 23 years. Mad man
You quite clearly haven’t if you think £18.50 with no SSP, no paid holiday, no employment rights, having to buy your own PPE, having to pay accountancy fees and all the costs of running a Ltd company makes you a lot better off than someone on £11.50/hr on PAYE.
GORDON 50:
As long as he puts aside enough to pay his tax and N.I then what’s the problem?
Tax evasion, in particular employers NI.
If the HMRC don’t like it then what’s the worse that can happen?
As has been posted, a bill for several thousands or more and if he has no money for it they bankrupt him and take his house.
Where did you get Tax Evasion from? Self employed people pay tax…the O/P never mentioned anything about not paying tax and NI.
As long as he fills out a tax return each year and has enough set aside to cover that tax and pays it on time then there’ll be no bankruptcy or anything else.
As long as he keeps records and is open about his earnings and not trying to fiddle the system then the taxman can do very little apart from telling him he must go PAYE.
How is it tax evasion if he has put the money aside ready for when he completes a self assessment?
What makes you think someone who will not be an employer could be responsible for employers NI?
Conor:
As has been posted, a bill for several thousands or more and if he has no money for it they bankrupt him and take his house.
If he does a self assessment and pays his tax - he will NOT have these imaginary bills to pay. I note none have given any explanation as to why these bills might be generated. It’s just nonsensical.
Yes, there is a clear issue regarding the GUIDELINES, on what may or not be self employment, and I have no doubt that the company owning the truck/s could end up with a bill, but even that is only going to equate to what is owed… and that is IF HMRC become aware & are interested. Then of course Guidelines are Guidlines, not tramlines.
The bottom line is HMRC collect tax and they will NOT tax him twice on the same earnings. £9,000 is 20% of 45k… and it remains 20% of 45k regardless of how he pays it.
It will NOT suddenly become 40% or any other strange number unless he earns more than that. Plus… he can most likely earn £11.5k before he has to pay tax… he will need professional advice based on his personal circumstances to clarify that.
If the OP contacts HMRC and quotes word for word what he said in his 1st post there can be only the one response from HMRC in that he WON’T cover the “guidelines” to go legally SE/Ltd.
Edited:
1st and 2nd post!!!
3rd post too!!![emoji28]
Will be interesting to see what they say!!![emoji52]
Trucker-Millward:
I’m 29, I want to go from £11.50 an hour to £18.50 with this new job. You work it out.
Things change all the time. Can’t not better myself because somethings changing in 23 years. Mad man
You quite clearly haven’t if you think £18.50 with no SSP, no paid holiday, no employment rights, having to buy your own PPE, having to pay accountancy fees and all the costs of running a Ltd company makes you a lot better off than someone on £11.50/hr on PAYE.
Actually, based on a 55 hour week, assuming the paye job pays time and a half after 40 hours our man would better by about £100.
Anyone self employed needs set aside 20% of their gross income to cover the likes of holiday/sickness and the like so if your charge out rate is more than this, your gold.
The trap a lot of new self employed fall into is that they see the charge out rate as being their hourly rate and spend up accordingly. Putting aside a third of your gross income into a savings account and not spending on flash new motors and such is the way to do it and when the enevitable bills come your way, you have cash reserves on hand and not incur any penalties.
I was a sole trader for 2 years before becoming a Ltd company and I put my 20% into a morgage offseting account which save me £1300 a year in interest.
Self employment is not for everyone, but if your smart, you will make it work. I grew from having only one day a weeks worth of work to now employing 4 people and subbing out jobs that I dont have capacity for. Been a wage slave, being the boss is much better.
You clearly have no understanding of how it works.
Company registration is done through Companies House… as the current rules stand there is no reason for his application being refused - unless he is struck off… given his questions… that’s very unlikely.
If he incorporates as a Ltd Company… as the company director - he is an employee of the company… he can register the company to pay PAYE… ‘to himself’. It’s all legal and no rules or guidelines to prevent this.
There is a huge difference between Ltd or Sole Trader / Self Employed.
That said, although financially he would be much better off as Ltd Co Director - there’s a lot more detail and he’s clearly not ready for it.
As for Conor, another example of nonsense. As he would be an employee of the company - the company would pay for his PPE etc, this can be deducted from profits and if he registers for VAT… he can claim that back too.
All a bit much for him to deal with right now and this can all be confirmed by the accountants he speaks with.
One thing is clear in this thread… the propensity for drivers who know sweet fa about a subject to spread rumours never diminishes.
You clearly have no understanding of how it works.
Company registration is done through Companies House… as the current rules stand there is no reason for his application being refused - unless he is struck off… given his questions… that’s very unlikely.
If he incorporates as a Ltd Company… as the company director - he is an employee of the company… he can register the company to pay PAYE… ‘to himself’. It’s all legal and no rules or guidelines to prevent this.
There is a huge difference between Ltd or Sole Trader / Self Employed.
That said, although financially he would be much better off as Ltd Co Director - there’s a lot more detail and he’s clearly not ready for it.
As for Conor, another example of nonsense. As he would be an employee of the company - the company would pay for his PPE etc, this can be deducted from profits and if he registers for VAT… he can claim that back too.
All a bit much for him to deal with right now and this can all be confirmed by the accountants he speaks with.
One thing is clear in this thread… the propensity for drivers who know sweet fa about a subject to spread rumours never diminishes.
I had my own artic tipper on road 10yrs ago so have a fair idea!!!
Your still ignoring the fact that Sole Trader or Ltd HMRC are “advocating/Advising/instructing” That either of the above cannot “chose” to go SE and drive a truck owned/operated by an employer rather than driver being employed via PAYE!!!
You still haven’t answered my previous question what is to stop a shop floor factory worker doing same thing!!!
Why instead of millions of agency workers in factories/farms/processors etc just opt Sole trader/Ltd and cut out the agency middleman■■?
You clearly have no understanding of how it works.
Company registration is done through Companies House… as the current rules stand there is no reason for his application being refused - unless he is struck off… given his questions… that’s very unlikely.
If he incorporates as a Ltd Company… as the company director - he is an employee of the company… he can register the company to pay PAYE… ‘to himself’. It’s all legal and no rules or guidelines to prevent this.
There is a huge difference between Ltd or Sole Trader / Self Employed.
That said, although financially he would be much better off as Ltd Co Director - there’s a lot more detail and he’s clearly not ready for it.
As for Conor, another example of nonsense. As he would be an employee of the company - the company would pay for his PPE etc, this can be deducted from profits and if he registers for VAT… he can claim that back too.
All a bit much for him to deal with right now and this can all be confirmed by the accountants he speaks with.
One thing is clear in this thread… the propensity for drivers who know sweet fa about a subject to spread rumours never diminishes.
I had my own artic tipper on road 10yrs ago so have a fair idea!!!
Your still ignoring the fact that Sole Trader or Ltd HMRC are “advocating/Advising/instructing” That either of the above cannot “chose” to go SE and drive a truck owned/operated by an employer rather than driver being employed via PAYE!!!
You still haven’t answered my previous question what is to stop a shop floor factory worker doing same thing!!!
Why instead of millions of agency workers in factories/farms/processors etc just opt Sole trader/Ltd and cut out the agency middleman■■?
Sent from my SM-J500FN using Tapatalk
I currently have three lorries, two vans, one pickup truck and I’m married to a chartered accountant… I know you’re wrong on the Ltd company issues and off the mark re SE. All that garb about factory workers etc is nonsense… I also own several properties that I rent out… by your measure you might aswell ask me why my tenants don’t buy their own houses… pointless analogy.
My wife confirms you are wrong… you’ll just have to accept that I’d much rather trust her qualified opinions over your opinions which appear to be backed up by either what you’ve heard… or what you’ve read on some obscure article.
FWIW, HMRC publish this information about Ltd Co etc on their website.
These issues you know naff all about are what my QUALIFIED wife advises business on every day.
You clearly have no understanding of how it works.
Company registration is done through Companies House… as the current rules stand there is no reason for his application being refused - unless he is struck off… given his questions… that’s very unlikely.
If he incorporates as a Ltd Company… as the company director - he is an employee of the company… he can register the company to pay PAYE… ‘to himself’. It’s all legal and no rules or guidelines to prevent this.
There is a huge difference between Ltd or Sole Trader / Self Employed.
That said, although financially he would be much better off as Ltd Co Director - there’s a lot more detail and he’s clearly not ready for it.
As for Conor, another example of nonsense. As he would be an employee of the company - the company would pay for his PPE etc, this can be deducted from profits and if he registers for VAT… he can claim that back too.
All a bit much for him to deal with right now and this can all be confirmed by the accountants he speaks with.
One thing is clear in this thread… the propensity for drivers who know sweet fa about a subject to spread rumours never diminishes.
I had my own artic tipper on road 10yrs ago so have a fair idea!!!
Your still ignoring the fact that Sole Trader or Ltd HMRC are “advocating/Advising/instructing” That either of the above cannot “chose” to go SE and drive a truck owned/operated by an employer rather than driver being employed via PAYE!!!
You still haven’t answered my previous question what is to stop a shop floor factory worker doing same thing!!!
Why instead of millions of agency workers in factories/farms/processors etc just opt Sole trader/Ltd and cut out the agency middleman■■?
Sent from my SM-J500FN using Tapatalk
I currently have three lorries, two vans, one pickup truck and I’m married to a chartered accountant… I know you’re wrong on the Ltd company issues and off the mark re SE. All that garb about factory workers etc is nonsense… I also own several properties that I rent out… by your measure you might aswell ask me why my tenants don’t buy their own houses… pointless analogy.
My wife confirms you are wrong… you’ll just have to accept that I’d much rather trust her qualified opinions over your opinions which appear to be backed up by either what you’ve heard… or what you’ve read on some obscure article.
FWIW, HMRC publish this information about Ltd Co etc on their website.
These issues you know naff all about are what my QUALIFIED wife advises business on every day.
From what I understand Jingle Jon, Big Truck is addressing the confusion about the employment status of drivers.
Your situation of running a genuine business which employs others is very different from that of a mere driver.
You clearly have no understanding of how it works.
Company registration is done through Companies House… as the current rules stand there is no reason for his application being refused - unless he is struck off… given his questions… that’s very unlikely.
If he incorporates as a Ltd Company… as the company director - he is an employee of the company… he can register the company to pay PAYE… ‘to himself’. It’s all legal and no rules or guidelines to prevent this.
There is a huge difference between Ltd or Sole Trader / Self Employed.
That said, although financially he would be much better off as Ltd Co Director - there’s a lot more detail and he’s clearly not ready for it.
As for Conor, another example of nonsense. As he would be an employee of the company - the company would pay for his PPE etc, this can be deducted from profits and if he registers for VAT… he can claim that back too.
All a bit much for him to deal with right now and this can all be confirmed by the accountants he speaks with.
One thing is clear in this thread… the propensity for drivers who know sweet fa about a subject to spread rumours never diminishes.
I had my own artic tipper on road 10yrs ago so have a fair idea!!!
Your still ignoring the fact that Sole Trader or Ltd HMRC are “advocating/Advising/instructing” That either of the above cannot “chose” to go SE and drive a truck owned/operated by an employer rather than driver being employed via PAYE!!!
You still haven’t answered my previous question what is to stop a shop floor factory worker doing same thing!!!
Why instead of millions of agency workers in factories/farms/processors etc just opt Sole trader/Ltd and cut out the agency middleman■■?
Sent from my SM-J500FN using Tapatalk
I currently have three lorries, two vans, one pickup truck and I’m married to a chartered accountant… I know you’re wrong on the Ltd company issues and off the mark re SE. All that garb about factory workers etc is nonsense… I also own several properties that I rent out… by your measure you might aswell ask me why my tenants don’t buy their own houses… pointless analogy.
My wife confirms you are wrong… you’ll just have to accept that I’d much rather trust her qualified opinions over your opinions which appear to be backed up by either what you’ve heard… or what you’ve read on some obscure article.
FWIW, HMRC publish this information about Ltd Co etc on their website.
These issues you know naff all about are what my QUALIFIED wife advises business on every day.
From what I understand Jingle Jon, Big Truck is addressing the confusion about the employment status of drivers.
Your situation of running a genuine business which employs others is very different from that of a mere driver.
Rjan:
From what I understand Jingle Jon, Big Truck is addressing the confusion about the employment status of drivers.
Your situation of running a genuine business which employs others is very different from that of a mere driver.
That^^^
The OP as I understand it is planning to work for one employer and has no asset himself, ie a vehicle. He is not free to turn down work anymore than an employed man and he will not have any other ‘customers’. Yes an employee.
HMRC are very clear, to be self employed as outlined by the OP, he needs a truck.
To be self employed you need to be providing a independent service when a driver works for one company and thinks he is self employed he is walking into trouble
All he is is a tool he doesn’t provide the service the truck does and the person who owns the equipment provides the service
You need to work for multiple companies to class yourself as self employed
You clearly have no understanding of how it works.
Company registration is done through Companies House… as the current rules stand there is no reason for his application being refused - unless he is struck off… given his questions… that’s very unlikely.
If he incorporates as a Ltd Company… as the company director - he is an employee of the company… he can register the company to pay PAYE… ‘to himself’. It’s all legal and no rules or guidelines to prevent this.
There is a huge difference between Ltd or Sole Trader / Self Employed.
That said, although financially he would be much better off as Ltd Co Director - there’s a lot more detail and he’s clearly not ready for it.
As for Conor, another example of nonsense. As he would be an employee of the company - the company would pay for his PPE etc, this can be deducted from profits and if he registers for VAT… he can claim that back too.
All a bit much for him to deal with right now and this can all be confirmed by the accountants he speaks with.
One thing is clear in this thread… the propensity for drivers who know sweet fa about a subject to spread rumours never diminishes.
I had my own artic tipper on road 10yrs ago so have a fair idea!!!
Your still ignoring the fact that Sole Trader or Ltd HMRC are “advocating/Advising/instructing” That either of the above cannot “chose” to go SE and drive a truck owned/operated by an employer rather than driver being employed via PAYE!!!
You still haven’t answered my previous question what is to stop a shop floor factory worker doing same thing!!!
Why instead of millions of agency workers in factories/farms/processors etc just opt Sole trader/Ltd and cut out the agency middleman■■?
Sent from my SM-J500FN using Tapatalk
I currently have three lorries, two vans, one pickup truck and I’m married to a chartered accountant… I know you’re wrong on the Ltd company issues and off the mark re SE. All that garb about factory workers etc is nonsense… I also own several properties that I rent out… by your measure you might aswell ask me why my tenants don’t buy their own houses… pointless analogy.
My wife confirms you are wrong… you’ll just have to accept that I’d much rather trust her qualified opinions over your opinions which appear to be backed up by either what you’ve heard… or what you’ve read on some obscure article.
FWIW, HMRC publish this information about Ltd Co etc on their website.
These issues you know naff all about are what my QUALIFIED wife advises business on every day.
From what I understand Jingle Jon, Big Truck is addressing the confusion about the employment status of drivers.
Your situation of running a genuine business which employs others is very different from that of a mere driver.
Yes I know, I was responding to his … used to run his own truck years ago. Bottom line is he does not understand the regulations and cannot back up anything he claims with evidence - HMRC publish stacks of detailed information online about employment status… it’s a minfield and it also states there are separate rules in Northern Iron… Just search employment status and enjoy the read.
What I have said all along is there is a huge difference between self employed and Ltd Company…
That yes HMRC may consider someone working for the same company… continually as being employed. However, this completely different for a company director - IT’S WHAT HMRC SAY. Not me!!!
Furthermore, and I’m now repeating myself… provided the OP pays his taxes & NI he will NOT incur some unexpected, huge bill later. If HMRC want to take actions, they will be against the truck owner… so the OP can crack on and reap the benefits he hopes for… and if he follows my advice and gets a Chartered Accountant - he’ll get the best advice specifically for him.
That’s all I’ve had to say on this issue… I know it’s right and I’ll leave it there - wishing the OP ALL THE BEST OF LUCK… I started my company out doing very similar.
You clearly have no understanding of how it works.
Company registration is done through Companies House… as the current rules stand there is no reason for his application being refused - unless he is struck off… given his questions… that’s very unlikely.
If he incorporates as a Ltd Company… as the company director - he is an employee of the company… he can register the company to pay PAYE… ‘to himself’. It’s all legal and no rules or guidelines to prevent this.
There is a huge difference between Ltd or Sole Trader / Self Employed.
That said, although financially he would be much better off as Ltd Co Director - there’s a lot more detail and he’s clearly not ready for it.
As for Conor, another example of nonsense. As he would be an employee of the company - the company would pay for his PPE etc, this can be deducted from profits and if he registers for VAT… he can claim that back too.
All a bit much for him to deal with right now and this can all be confirmed by the accountants he speaks with.
One thing is clear in this thread… the propensity for drivers who know sweet fa about a subject to spread rumours never diminishes.
I had my own artic tipper on road 10yrs ago so have a fair idea!!!
Your still ignoring the fact that Sole Trader or Ltd HMRC are “advocating/Advising/instructing” That either of the above cannot “chose” to go SE and drive a truck owned/operated by an employer rather than driver being employed via PAYE!!!
You still haven’t answered my previous question what is to stop a shop floor factory worker doing same thing!!!
Why instead of millions of agency workers in factories/farms/processors etc just opt Sole trader/Ltd and cut out the agency middleman■■?
Sent from my SM-J500FN using Tapatalk
I currently have three lorries, two vans, one pickup truck and I’m married to a chartered accountant… I know you’re wrong on the Ltd company issues and off the mark re SE. All that garb about factory workers etc is nonsense… I also own several properties that I rent out… by your measure you might aswell ask me why my tenants don’t buy their own houses… pointless analogy.
My wife confirms you are wrong… you’ll just have to accept that I’d much rather trust her qualified opinions over your opinions which appear to be backed up by either what you’ve heard… or what you’ve read on some obscure article.
FWIW, HMRC publish this information about Ltd Co etc on their website.
These issues you know naff all about are what my QUALIFIED wife advises business on every day.
Run this past your “QUALIFIED” Wife,
fact:
A friend of mine is a large Dairy Farmer/Agri Contractor.
He gets very busy Agri Contracting May/Sept each year cutting silage/Combining etc.
He “took on” 5/6 local tractor drivers on SE basis but working 40/80hrs week during those months.
All kept books and submitted invoices weekly to him and did their yearly tax return via accountants.
About 3yrs ago had visit from HMRC and they instructed him that the tractor drivers couldn’t be SE under income tax regulations as they didn’t own etc the machinery and only invoiced out their driving labour.
They needed to be FT employees under PAYE during those months and going Ltd and their “company” having them as a single employee wasn’t acceptable either!!!
Ask qualified Wifey if HMRC were wrong in their “directions” and what in reality is the overall difference in the tractor drivers and a Sole trader/Ltd person who provides his PERSONAL driving services on trucks that he doesn’t own■■?
