Good evening.
Can anyone please tell me the benefits of going LTD as an agency driver?
Not sure what you can claim for personal vehicle, food rec.
Thank you so much
You should be on a higher rate as they don’t pay any employers National Insurance.
Popcorn anyone?
Honestly? Bugger all personally. Most agencies offer just £1 or maybe £2 more per hour and you dont holiday pay.
After all the horror stories of various accountant companies screwing drivers to the tune of £1000s, I dont think it is ever worth it.
The benefits for the agency are:
- More profit.
- No employers national Insurance to pay.
- No employees tax to calculate or pay.
- No holiday payments to make.
- Simpler payment system.
- No bother about the agency workers regulations.
The real benefits for you are:
Unless…
You can dictate your rates, it’s not worth it any more. The £1-2 ph more the agencies offer just isn’t worth it. You’ll be losing in comparison to a PAYE man on the same job.
You need to be quoting £11 - 12 ph an hour and then OT after eight hours accordingly and you aint gonna get that kind of deal from an agency. The only way to secure those rates are by working directly for the client. Then you’ll have to work for different clients in the year to validate your Ltd company status.
The tax man, the VAT man and the chancellor have done their level best to stop the one man band from making a profit.
So, to sum up…don’t bother.
A lot depends on your age I’m 57 and on the slow down to retirement been ltd for 6 years and wouldn’t go back PAYE at any cost enjoy what I’m doing telling agencies NO when I don’t fancy the job they offer and get work 5 days a week unless I decide to take the odd week off or the odd month and don’t have to answer to anyone.
My rates are between £ 11/13 Mon /Fri.
I have an advantage over most as I do my own Incorporation,VAT,confirmation statement and self assessment which is a big saving to me and the only accounts my accountant does is corporation tax and he don’t charge a lot.
Its about making a profit and limiting your costs so if your not prepared to do what I do its not worth doing.
dandyhighwayman2:
A lot depends on your age I’m 57 and on the slow down to retirement been ltd for 6 years and wouldn’t go back PAYE at any cost enjoy what I’m doing telling agencies NO when I don’t fancy the job they offer and get work 5 days a week unless I decide to take the odd week off or the odd month and don’t have to answer to anyone.
But you can do all of that when you work for an agency on a PAYE basis.
You get paid a slightly higher hourly rate, but you don’t get holiday or sick pay, and you will need to use an accountant. Whether that makes the higher hourly rate worthwhile depends largely on how many hours you work.
Personally, I wouldn’t do work on any basis other than PAYE, I’ve read too many horror stories about enormous tax bills dropping through the letterbox several years later.
I got a nice letter from companies house on Tuesday informing me that my company would finally be dissolved the next day, and the process could not be stopped.
Personally I don’t see the point of setting up your own Company and then having to rely on a 3rd party (the Agency) to get work !! You may aswell be employed full-time somewhere else or by the Agency.
I’m am in favour of people setting up their own Company and running it completely independent without interference from elsewhere, after all that’s the point of setting up your own business !!!
dandyhighwayman2:
A lot depends on your age I’m 57 and on the slow down to retirement been ltd for 6 years and wouldn’t go back PAYE at any cost enjoy what I’m doing telling agencies NO when I don’t fancy the job they offer and get work 5 days a week unless I decide to take the odd week off or the odd month and don’t have to answer to anyone.
My rates are between £ 11/13 Mon /Fri.
I have an advantage over most as I do my own Incorporation,VAT,confirmation statement and self assessment which is a big saving to me and the only accounts my accountant does is corporation tax and he don’t charge a lot.
Its about making a profit and limiting your costs so if your not prepared to do what I do its not worth doing.
Only £11-£13? I was on £12 an hour PAYE via agency. Im on £11 now with a permanent job, £17.50 an hour if I pull a 5th shift no matter what day it is on.
Andrew.simmons:
dandyhighwayman2:
A lot depends on your age I’m 57 and on the slow down to retirement been ltd for 6 years and wouldn’t go back PAYE at any cost enjoy what I’m doing telling agencies NO when I don’t fancy the job they offer and get work 5 days a week unless I decide to take the odd week off or the odd month and don’t have to answer to anyone.
My rates are between £ 11/13 Mon /Fri.
I have an advantage over most as I do my own Incorporation,VAT,confirmation statement and self assessment which is a big saving to me and the only accounts my accountant does is corporation tax and he don’t charge a lot.
Its about making a profit and limiting your costs so if your not prepared to do what I do its not worth doing.Only £11-£13? I was on £12 an hour PAYE via agency. Im on £11 now with a permanent job, £17.50 an hour if I pull a 5th shift no matter what day it is on.
My last permanent job was £7.15 an hour and having to do over 60 hrs and sometimes all week away to earn a decent crust… got mates on no more than £9.50 permanent jobs…don’t know any agencies around the East Midlands paying decent PAYE rates.
dandyhighwayman2:
A lot depends on your age I’m 57 and on the slow down to retirement been ltd for 6 years and wouldn’t go back PAYE at any cost enjoy what I’m doing telling agencies NO when I don’t fancy the job they offer and get work 5 days a week unless I decide to take the odd week off or the odd month and don’t have to answer to anyone.
My rates are between £ 11/13 Mon /Fri.
.
But I used to be able to do that with agencies I drove for on PAYE, you don’t need to be Ltd to do that, just competent and in demand. I also got paid £11.50hr plus unlike you I also got holiday pay and employers pension contributions.
So all you’ve done is prove there’s no advantage to being on Ltd and that you’re actually worse off than PAYE given you still have to pay an accountant and there is no guarantee you get paid.
dandyhighwayman2:
Andrew.simmons:
dandyhighwayman2:
A lot depends on your age I’m 57 and on the slow down to retirement been ltd for 6 years and wouldn’t go back PAYE at any cost enjoy what I’m doing telling agencies NO when I don’t fancy the job they offer and get work 5 days a week unless I decide to take the odd week off or the odd month and don’t have to answer to anyone.
My rates are between £ 11/13 Mon /Fri.
I have an advantage over most as I do my own Incorporation,VAT,confirmation statement and self assessment which is a big saving to me and the only accounts my accountant does is corporation tax and he don’t charge a lot.
Its about making a profit and limiting your costs so if your not prepared to do what I do its not worth doing.Only £11-£13? I was on £12 an hour PAYE via agency. Im on £11 now with a permanent job, £17.50 an hour if I pull a 5th shift no matter what day it is on.
My last permanent job was £7.15 an hour and having to do over 60 hrs and sometimes all week away to earn a decent crust… got mates on no more than £9.50 permanent jobs…don’t know any agencies around the East Midlands paying decent PAYE rates.
Kin hell thats awful. I used to think £9 was bad when I lived in Mansfield back in 2012!