I’m just wondering what the current layof the land is regarding ltd working and what the work around are for this situation. Since the introduction of ir35 I realise it’s put many people in a more complex situation. With the wife’s work now completely remote Over the next few years I hope to be spending 90 out of every 180 days in caravan over in Portugal and wondered the most tax efficient way of working since it will be sporadic short term work without perm contracts when I come back and top up the pot… I’ve spent a lot of time looking but can’t find the info I’m after in any great detail anywhere. Any thoughts or ideas on what would be the best options. Cheers in advance
In the mists…
Of time (30 years I guess possibly more), I remember successfully claiming non UK resident status. Literally being out of the UK for over 90 days including personal holidays to Florida.
The staff at the tax office helped me fill in the forms. I don’t think that would happen these days.
I have no idea whether this fits your situation or it even exists any more.
The problem now, it will be difficult to find companies willing to employ a driver doing Ltd.
Last April when the government decided to move the goal posts, I like most had no option but to go paye. Drivers who carried on doing Ltd found little work and switched over to paye.
AFAIK, you need to be able to demonstrate minimum of 182 nights (we call them days) out of the UK, but if its then working in the UK to earn money, if you’re a UK citizen then it still gets taxed. The exemptions are more towards working abroad and being paid for non-UK work.
The Ltd Co/ driver is also frowned upon by the TCs, because the operator has no ‘effective and continuous management’ of operations over a Ltd Company, which there is for an employee or through an agency. The easiest thing to try is the HMRC CEST check which, if answered honestly, will indicate if the driver could or should be an employee.
yourhavingalarf:
In the mists…Of time (30 years I guess possibly more), I remember successfully claiming non UK resident status. Literally being out of the UK for over 90 days including personal holidays to Florida.
The staff at the tax office helped me fill in the forms. I don’t think that would happen these days.
I have no idea whether this fits your situation or it even exists any more.
The best person to answer that, would be Rishi’s missus…
Trucker Jimbob:
I’m just wondering what the current layof the land is regarding ltd working and what the work around are for this situation.
There aren’t any. One of the last ltd co driver hold outs I know is now on PAYE as of the start of this tax year because he couldn’t find any work as Ltd other than really crap stuff paying nowt with a few mates he knew who were owner drivers.
If its sporadic short term stuff why not just go PAYE on an agency and grab the lucrative shifts?
That way you top up the pot and dont run the risk of fiddling your taxes and getting clobbered at a future date.
And remember… People are ‘efficient’ at minimising tax bills but NONE of us are rich enough to be able to do it at great scale or with impunity.
Thanks for all the info guys. I had heard suggestions of going with small companies etc but seems it’s more hassle than it’s likely worth. I guess rates will have to continue to go up to make up for some of the short fall. Are you guys still experiencing higher pay rates ?
Yep. Money still good, even if they can get enough people interested in the job and enough testers to be maxing out the number of new drivers they can churn out every year we’re looking at years before they come close to making up the shortfall especially as companies are still wanting experience.