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