GajnyH1:
I tried 99p company formations, just check it on Google, couldn’t believe in that they can register my LTD for just 99p, and they will do everything for you. I spoke with one guy who called me from this company, for over an hour and said step by step what I have to do. Also, they giving you options to choose bank for your company and many other things. Like said, couldn’t believe and just paid £0.99, and said to myself, I’ll not cry and that not a waste of money. But there’s a long and hard way to start on 100%. Good luck
The registration fee for setting up a limited company is £12 so why would anyone charge you 99p to do it?
adam277:
Well I live in Essex so I have a lot of supermarket RDC work available to me. So if working at my current employer is an issue I could just move to another.
I know your views on LTD companies Conor and you are right. But I’ve seen payslips from these guys and some are on a lot more then me. I know they don’t get my pension or holiday pay, sick pay etc. But I’m basically looking for 1 year to make a load of money and smash out all my debt I don’t want a career out of it.
Normally, Ltd pays £2 an hour more than PAYE which doesn’t even cover the loss of holiday pay and pension contributions.
I’ve been reliably informed it costs around 1/3 on top of the wage to employ someone on paye so that’s minimum ltd should go for
adam277:
Well I live in Essex so I have a lot of supermarket RDC work available to me. So if working at my current employer is an issue I could just move to another.
I know your views on LTD companies Conor and you are right. But I’ve seen payslips from these guys and some are on a lot more then me. I know they don’t get my pension or holiday pay, sick pay etc. But I’m basically looking for 1 year to make a load of money and smash out all my debt I don’t want a career out of it.
Normally, Ltd pays £2 an hour more than PAYE which doesn’t even cover the loss of holiday pay and pension contributions.
I’ve been reliably informed it costs around 1/3 on top of the wage to employ someone on paye so that’s minimum ltd should go for
The old rule of thumb for freelancing was that you should be charging 3/1 of the PAYE hourly rate - that is, 3x the PAYE hourly rate!
If you’re only breaking even on what you’d be getting in employment, then somebody somewhere is getting shafted. Possibly the taxman, but probably you yourself.
Why would you forfeit job security, lose a host of rights, involve yourself in all the clerical requirements of running a business operation, take the risks, and have all the hassle of finding and dealing with customers, if you’re only getting the rate that employed guys get without a shred of those hassles and none of those skills?
Concretejim:
Being LTD and working as labour only effects millions of workers across the UK. Not just a few drivers.
But a hell of a lot of firms use it to there advantage, just as they do zero hour contracts for there paye guys.
Hmrc say you need your own truck to be genuinely ltd, fair enough. But i use to have a lot more freedom and choices then all these, tarmac, agg industries, breedon franchise hauliers do. Who are told when they start, what loads they take, how much they get paid and there t&c’s etc etc.
Go figure that one out conor.
If your on agency go paye its the only legal way, hmrc may or may not catch up with you, and if they do you will pay what they say you owe.
How to save money and pay debts, as said dont spend it.
It isn’t as straightforward as you portray. However people who deliberately set themselves up as Ltd co just to avoid tax and NI are deluding themselves. If you have other business interests then I don’t see how that is evading the law. After all firms subcontract and subcontractors subcontract too!
Concretejim:
Being LTD and working as labour only effects millions of workers across the UK. Not just a few drivers.
But a hell of a lot of firms use it to there advantage, just as they do zero hour contracts for there paye guys.
Hmrc say you need your own truck to be genuinely ltd, fair enough. But i use to have a lot more freedom and choices then all these, tarmac, agg industries, breedon franchise hauliers do. Who are told when they start, what loads they take, how much they get paid and there t&c’s etc etc.
Go figure that one out conor.
If your on agency go paye its the only legal way, hmrc may or may not catch up with you, and if they do you will pay what they say you owe.
How to save money and pay debts, as said dont spend it.
It isn’t as straightforward as you portray. However people who deliberately set themselves up as Ltd co just to avoid tax and NI are deluding themselves. If you have other business interests then I don’t see how that is evading the law. After all firms subcontract and subcontractors subcontract too!
If someone, is as you describe, working for various different companies, they MAY be ok as self-employed or be ok as Ltd. They may however be an employed person with multiple employers.
The OP states he “works for a supermarket” do is highly unlikely to pass any such test.
Rjan:
The old rule of thumb for freelancing was that you should be charging 3/1 of the PAYE hourly rate - that is, 3x the PAYE hourly rate!
If you’re only breaking even on what you’d be getting in employment, then somebody somewhere is getting shafted. Possibly the taxman, but probably you yourself.
Why would you forfeit job security, lose a host of rights, involve yourself in all the clerical requirements of running a business operation, take the risks, and have all the hassle of finding and dealing with customers, if you’re only getting the rate that employed guys get without a shred of those hassles and none of those skills?
One of those rare days when i find myself agreeing with Rjan
My lads are on PAYE, I tell them what truck to take where and off they toddle. They know that they get a contribution to their pension from us, all the business risks are down to me, they get paid even if there is no work, they get sick pay, (albeit SSP) and averaged holiday pay. I can guarantee if I ask them if they want to go Ltd for £2.00 an hour more, there response will end in off.
Having a “discussion” with another agency driver
Reckons he doesn’t pay any tax at all accounts cost £400 a year and can claim 45p mileage.
Funny how all accountants I used in past and still talk too say I can no longer claim mileage
And since going Ltd I feel better. Less stress as I hate paperwork. Still agency. But get 28 days a year holiday pay on average last 3 months and a small pension pot and ssp if needed
But yes I pay tax and ni now
adam277:
But I’m basically looking for 1 year to make a load of money and smash out all my debt I don’t want a career out of it.
Perhaps you should reflect upon the fact that if you didn’t take such a short-term view of your personal finances, then you wouldn’t be in debt in the first place?
adam277:
But I’m basically looking for 1 year to make a load of money and smash out all my debt I don’t want a career out of it.
Perhaps you should reflect upon the fact that if you didn’t take such a short-term view of your personal finances, then you wouldn’t be in debt in the first place?
If you in debt, the worse thing you can do is go Ltd. Trouble is you get paid the full amount each week, which you have to keep back enough to pay the tax man accountant etc but if you are short of money its easy to dip into that, then the ■■■ hit the fan if you miss the tax man payment.
If you keep your nose clean you should be ok. Most agency drivers where I work are Ltd don’t know anyone been spot checked but it is very important you use a decent accountant.
adam277:
But I’m basically looking for 1 year to make a load of money and smash out all my debt I don’t want a career out of it.
Perhaps you should reflect upon the fact that if you didn’t take such a short-term view of your personal finances, then you wouldn’t be in debt in the first place?
If you in debt, the worse thing you can do is go Ltd. Trouble is you get paid the full amount each week, which you have to keep back enough to pay the tax man accountant etc but if you are short of money its easy to dip into that, then the ■■■ hit the fan if you miss the tax man payment.
If you keep your nose clean you should be ok. Most agency drivers where I work are Ltd don’t know anyone been spot checked but it is very important you use a decent accountant.
This above comment makes a lot of sense. Whilst IR35 isn’t enforced on the smaller companies get yourself a decent accountant, DO NOT use one that offers to do everything for you, ie invoice on your behalf, that registers your office as their registered office address, that has any control or involvement in your company otherwise you will land in big trouble with HMRC due to MSC legislation. HMRC are very clued up on which accountants operate this way, and when there are enough companies using the dodgy accountants, then they will land large tax/ni bills on unsuspecting ltd co owners.
