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.