Hi all, probably been spoken about before but can I have a consensus on umbrella company and pitfalls if any. Have considered going Ltd for some time as like the flexibility of self employment but the agencies up here in any rate, seem to push the umbrella system. Pros and cons for both I guess just want more info from those who have used them in the past . All appreciated 
PAYE
You have missed the boat with the Ltd Co option, (was great when all expenses and FRS VAT could be claimed), you would be best avoiding the umbrella option and opt for PAYE.
In your other post you say your an owner driver so im guessing you already have a Ltd company to use?
cav551:
PAYE
Seconded.
Umbrella can appeal to some people who prefer to be paid a little extra hourly in return for losing holiday entitlement.
Rjan:
cav551:
PAYESeconded.
X3
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Geordiebloke50:
Hi all, probably been spoken about before but can I have a consensus on umbrella company and pitfalls if any. Have considered going Ltd for some time as like the flexibility of self employment but the agencies up here in any rate, seem to push the umbrella system. Pros and cons for both I guess just want more info from those who have used them in the past . All appreciated
Limited without a doubt so long as you can do payroll and suss simple spreadsherets or your missus can. Also make sure you work across a number of customers. Being Ltd working for one agency is a bit hard to defend!
It is a bit of hard work but if you are methodical it is fine.
If you can only/choose to work solely for one agency then go PAYE.
robbo99:
You have missed the boat with the Ltd Co option, (was great when all expenses and FRS VAT could be claimed), you would be best avoiding the umbrella option and opt for PAYE.
This ^.
Ltd is dead in the water due to VAT being stopped and all expenses being cut. Add in HMRC actively persuing you for IR35 now (which every driver falls foul of on the substitution front, amongst others) and it’s not even worth the effort as you end up on less than a PAYE driver. It was a good earner with the VAT FRS and other “exploits”, especially as HMRC didn’t really give a toss so long as you paid a sensible amount of tax every year but it’s not worth a [zb] now and was the final nail in the coffin and kick up the arse for me to get out of the industry. You can’t get companies (or agencies) to pay your rate increases you need to offset the expenses and VAT being cut so in real terms every ltd co driver has taken a substantial pay cut off their bottom line and with HMRC ready to pounce at any moment with a large fine and back-payment for flouting IR35 you’d be off your head to do ltd co now if you’re just providing labour as a driver (no truck of your own involved).
Your choices are :
- PAYE
- Cash in hand
Brolly is just one big scam which serves no purpose but to line the agency’s pockets as the brolly companies are run by the agencies. Good luck trying to get a decent PAYE (non-brolly) rate out of an agency .
blue estate:
Rjan:
cav551:
PAYESeconded.
X3
X4.
Ken
Sand Fisher:
Also make sure you work across a number of customers. Being Ltd working for one agency is a bit hard to defend!
Try, now virtually impossible.
Ken.
With IR35 now on HMRC’s hit list, if investigated, the Ltd Co Driver/Director will be responsible for his/her IR35 compliance, not only from this point forward but for all previous engagements. If they can’t satisfy HMRC’s rules then they are looking at very large NI/Tax bills. One thing HMRC compliance departments are very good at is letting situations develop over long periods of time and then when the time suits they enforce legislation that is totally ambiguous, shrouded by grey areas and open to interpretation. There is the right way, the wrong way and the Government/HMRC’s way.
robbo99:
With IR35 now on HMRC’s hit list, if investigated, the Ltd Co Driver/Director will be responsible for his/her IR35 compliance, not only from this point forward but for all previous engagements. If they can’t satisfy HMRC’s rules then they are looking at very large NI/Tax bills. One thing HMRC compliance departments are very good at is letting situations develop over long periods of time and then when the time suits they enforce legislation that is totally ambiguous, shrouded by grey areas and open to interpretation. There is the right way, the wrong way and the Government/HMRC’s way.
As my accountant once said during a battle with HMRC, it’s their pitch, their ball and their referee.
albion:
robbo99:
With IR35 now on HMRC’s hit list, if investigated, the Ltd Co Driver/Director will be responsible for his/her IR35 compliance, not only from this point forward but for all previous engagements. If they can’t satisfy HMRC’s rules then they are looking at very large NI/Tax bills. One thing HMRC compliance departments are very good at is letting situations develop over long periods of time and then when the time suits they enforce legislation that is totally ambiguous, shrouded by grey areas and open to interpretation. There is the right way, the wrong way and the Government/HMRC’s way.As my accountant once said during a battle with HMRC, it’s their pitch, their ball and their referee.
Oh so true
albion:
As my accountant once said during a battle with HMRC, it’s their pitch, their ball and their referee.
Exactly, it’s best to work on a PAYE basis and completely stay off of HMRCs radar. I sometimes do agency work and the only drivers left operating as limited company now are the Poles and I think this is simply because they know they have the option of going home when it all goes ■■■■-up, and HMRC can’t chase them for the money.
Harry Monk:
albion:
As my accountant once said during a battle with HMRC, it’s their pitch, their ball and their referee.Exactly, it’s best to work on a PAYE basis and completely stay off of HMRCs radar. I sometimes do agency work and the only drivers left operating as limited company now are the Poles and I think this is simply because they know they have the option of going home when it all goes ■■■■-up, and HMRC can’t chase them for the money.
What problem with Ltd.Simly don t claim not legal think and all will be good.Problem can be when driver start claim so much from private life .
Andrejs:
Harry Monk:
albion:
As my accountant once said during a battle with HMRC, it’s their pitch, their ball and their referee.Exactly, it’s best to work on a PAYE basis and completely stay off of HMRCs radar. I sometimes do agency work and the only drivers left operating as limited company now are the Poles and I think this is simply because they know they have the option of going home when it all goes ■■■■-up, and HMRC can’t chase them for the money.
What problem with Ltd.Simly don t claim not legal think and all will be good.Problem can be when driver start claim so much from private life .
i know some driver who gave own company registered in Manchester but he was worked in Rugby.He claim every day mileage from Manchester to Rugby.This man not foreigh.
I thought this debate had been put together long ago.
Mind you go on some Facebook truck groups and half the self employed drivers are wasted driving as they seem to know more than the accounts at Starbucks.