contractorcalculator.co.uk/ … _news.aspx
False self/contracted employment.
Nowt to do with trucks
The way it’s all going HMRC will be going after more and more workers via IR35, they have the little man in their sights now, so much easier and cheaper to chase the one man band company’s than the multi national multi tax avoiding giants. HMRC are like a dog with a bone at the moment with PSCs, they just won’t let go.
GasGas:
HMRC wins first IR35 case in seven years against BBC presenter Christa AckroydFalse self/contracted employment.
Nowt to do with trucks
Everything to do with them especially when it comes to the mickey mouse self employed agency driver.
Aren’t there a lot of doctors/consultants working for the NHS on. Self employed basis? Using NHS equipment and facilities?
i will take a slightly different tack to this - is the HMRC trying to stop big companies getting out of paying holiday pay, employers N.I., etc
Personally I can’t wait for her madge’s henchmen to close all this down. It’s been a scam since the get go and done nothing but harm to our industry.
The biggest harm coming in the form of depressed wages as clueless drivers think getting a quid an hour on top of PAYE makes them better off.
I don’t know how many times the authorities have to say unless you have your own truck you’re not self employed yet still the agencies are touting this nonsense and every week a new thread on how to set up LTD or Umbrella.
You must be nuts getting into all this now.
cheekymonkey:
Aren’t there a lot of doctors/consultants working for the NHS on. Self employed basis? Using NHS equipment and facilities?
Yes there is but they work at different hospitals and also do private consulting.
The thing is HMRC are already enforcing IR35 in the public sector, ie BBC & NHS, they will next be going after the private sector but there lies a problem, 5.5 million workers work via their own ltd co and to come up with clarity and to enforce it on the 5.5 million workers may just come back and bite the government of the day in the bum, just like the attempting to increase ni for the self employed did.
hardyd44:
i will take a slightly different tack to this - is the HMRC trying to stop big companies getting out of paying holiday pay, employers N.I., etc
In a nutshell…government is being deprived of revenue, workers are being coerced into “self employment” by the poor rates of paye on offer from cowboy employers so the only winner is the cowboy. When it comes on top they’ll just fold and walk away only to start up again the next day as Cowboy 2018 2.0
Terry T:
Personally I can’t wait for her madge’s henchmen to close all this down. It’s been a scam since the get go and done nothing but harm to our industry.The biggest harm coming in the form of depressed wages as clueless drivers think getting a quid an hour on top of PAYE makes them better off.
I don’t know how many times the authorities have to say unless you have your own truck you’re not self employed yet still the agencies are touting this nonsense and every week a new thread on how to set up LTD or Umbrella.
You must be nuts getting into all this now.
I have seen posts on Facebook (so I have no idea if its true) of LTD drivers earning £35-40k. Nothing special there when you factor in the loss of holidays etc. However they then claim to only pay £1-2k tax a year at most. All down to the “expenses” of running the business. If this is correct then that 35-40 is now worth more like 43-50k on paye. Suddenly the quid an hour seems worth it.
Until of course the taxman questions these “expenses”
The £1 an hour extra that the ltd co driver gets is just the beginning of the benefits he / she gains, they draw a minimum salary which incurs no ni liability and no income tax liability, they then offset certain business costs against their tax and also draw remainder of profits (wages) as dividends which has a tax free threshold which once reached is taxed at low rates above and beyond, and no ni to pay on dividends. When full expenses were claimable and the flat rate vat scheme were so generous it was kerching all round. The writing though now is on the wall.
kcrussell25:
I have seen posts on Facebook (so I have no idea if its true) of LTD drivers earning £35-40k. Nothing special there when you factor in the loss of holidays etc. However they then claim to only pay £1-2k tax a year at most. All down to the “expenses” of running the business. If this is correct then that 35-40 is now worth more like 43-50k on paye. Suddenly the quid an hour seems worth it.Until of course the taxman questions these “expenses”
Most of them are using travel to work as their biggest expense. That was ruled out by HMRC a couple of years ago at least so you have lots of “self employed” drivers claiming £1000s a year as travel expenses which aren’t an allowed expense. If I claimed mileage I’d be putting down £5,500 a year as an expense and saving myself £1,100 in income tax and £990 NI. If I were claiming tax credits I would get more tax credits as a result because my taxable income would be lowered by £5500.
robbo99.:
(wages) as dividends which has a tax free threshold which once reached is taxed at low rates above and beyond, with once again no ni liability on dividends.
Dividends are paid out of post tax profit so they’re paid out of Limited Company income which has already had Corporation Tax applied so the money has already been taxed. So they’re already not totally tax free but CT is at 19% so they save a little. The tax free part of dividends as income is to save administration as there is a dividend allowance you can claim for the rest so that the money doesn’t end up being double taxed.
But for clarification there isn’t a single penny paid out in Dividends which hasn’t been taxed at one point or another.
Conor:
kcrussell25:
I have seen posts on Facebook (so I have no idea if its true) of LTD drivers earning £35-40k. Nothing special there when you factor in the loss of holidays etc. However they then claim to only pay £1-2k tax a year at most. All down to the “expenses” of running the business. If this is correct then that 35-40 is now worth more like 43-50k on paye. Suddenly the quid an hour seems worth it.Until of course the taxman questions these “expenses”
Most of them are using travel to work as their biggest expense. That was ruled out by HMRC a couple of years ago at least so you have lots of “self employed” drivers claiming £1000s a year as travel expenses which aren’t an allowed expense. If I claimed mileage I’d be putting down £5,500 a year as an expense and saving myself £1,100 in income tax and £990 NI. If I were claiming tax credits I would get more tax credits as a result because my taxable income would be lowered by £5500.
This guy was on about his wife was his “sectary” so needed paying. As well as both his and hers phones. Home broadband and rent to him personally for office space in home for the business. Meals out were “business meetings.” It all looks legit and ok on the surface but am not sure would stand up to scrutiny
Maybe that why the agencies employ an umbrella company ( maybe the same firm ) but the way i see it, no one can be self employed in transport unless he holds the O licence…agencies seemed to have got around that hopefully not for long with HMRC on their backs…technically they are the employers, and are liable for tax and NI and holiday pay…i dont like umbrella as a way of getting out of responsibilities, and making us pay to go to work, or to deduct the stoppages…
Captain Caveman 76:
BBC presenter may face £420,000 tax bill in HMRC clampdown | Daily Mail OnlineNot just truckers they’re going after.
Thats the same case as the link in the op lol
robbo99.:
The thing is HMRC are already enforcing IR35 in the public sector, ie BBC & NHS, they will next be going after the private sector but there lies a problem, 5.5 million workers work via their own ltd co and to come up with clarity and to enforce it on the 5.5 million workers may just come back and bite the government of the day in the bum, just like the attempting to increase ni for the self employed did.
The government can’t have it both ways. The Tories have been creaming their pants the last few years, with record low ‘unemployment’ figures, thanks to the “gig” economy which they’ve been pushing, to show us how successful they are. What they fail to admit is that most of those “gigging” are at best scraping a living, with no security what so ever. Perhaps the Treasury is now finally realised that people who don’t earn a living, can’t pay tax… So they’ll go after the few that can.
Luckily when we cut our ties with Europe, we can return to better days.
scottie0011:
Captain Caveman 76:
BBC presenter may face £420,000 tax bill in HMRC clampdown | Daily Mail OnlineNot just truckers they’re going after.
Thats the same case as the link in the op lol
Oops. 
Christa Ackroyd seems to have fallen into this trap by firstly the BBC encouraging her to set up a ltd company to pay her through just like the agencies do with driver’s and other industries and HMRC turning a blind eye for years and years and then landing her with a massive NI /Tax bill for all of those previous years. Identical to the MSC legislation, HMRC had the legislation in place but waited years and years then landed big NI / Tax bills on people’s door mats. Easy pickings for HMRC and the longer they allowed it the bigger the pickings. The way the tories are going with driver’s especially the fact that the average age of HGV driver’s is 55 many won’t need the money or the hassle and will say sod it and do less and less.