Dieseldoforme:
.
HGV Driver who obtains
work directly from a client (such as a holiday relief etc.,)
and who bills the client direct, with a flat fee that covers
wage, holiday pay and National Insurance etc.
Yes i do that for a friend.
Work a few nights etc and just invoice him every month.
When I retired I kept on working as a relief driver for my old firm on a self employed basis - I invoiced them monthly for the hours I had worked (no VAT). Then HMRC decided that I couldn’t be self employed if (among other things) I only had one ‘employer’, and I didn’t have to find a relief for me if I wasn’t available… I had to pay some back tax, but it was a lot less than I would have paid on PAYE.
£8 base rate is nothing like enough. After costs you’d be below min. wage. I’d say needs to be at least 10, better 12.
Animal can you name some of the many advantages of a Ltd. co.?
Bearing in mind you have a cost to buy it or set it up, then annual returns to submit.
I’ve been s/e as s/t 26 years inc. the time when I had my own unit. Been VAT registered twice in that time because it was beneficial to me. Also been on PAYE as well twice in that time.
Driveroneuk:
£8 base rate is nothing like enough. After costs you’d be below min. wage. I’d say needs to be at least 10, better 12.
Animal can you name some of the many advantages of a Ltd. co.?
Bearing in mind you have a cost to buy it or set it up, then annual returns to submit.
I’ve been s/e as s/t 26 years inc. the time when I had my own unit. Been VAT registered twice in that time because it was beneficial to me. Also been on PAYE as well twice in that time.
You can keep your personal income tax down ok you have to pay business tax
You can keep your NI to a min
If it goes ■■■ up you dont lose out personally ie your house ( yep I have know this happen )
A mate of mine is set up as a LTD company works in the private sector on behalf of the government he charges them a fortune for his services but alas pays no income tax & yep it is legal although a short term contract but suits him tbh & yep I know which contract he is working on & it is a farce
Driveroneuk:
£8 base rate is nothing like enough. After costs you’d be below min. wage. I’d say needs to be at least 10, better 12.
£8 is the going PAYE agency rate for a C+E Driver in my neck of the woods and
its been that amount for years.
You might get an extra quid for nights and an extra quid if you go self employed,
but only because they don’t pay holiday pay or national insurance for self employed.
I want to cut out the agency and share the savings with the Company I invoice.
the agency that convinced me to go self employed only pay an extra 50p per hour. obviously i took their advice then went elsewhere as they are the only agency i know that only give 50p more. £1 per hour extra is the going rate, pay it or dont call me.
1 main advantage is being able to work for anyone without emergency rate tax which would be the case as an agency driver working for a 2nd agency. it would be classed as a 2nd job so we no longer get hammered for seeking variety. i can work for 5 different sources in 5 days and only pay a single (and comparitively very reasonable) tax rate. plus VAT if i cut out NOVA and use a real accountant who will charge less for a better service ie hide more expenses.
i would agree with what has been said about attending a business course. there will be a reasonably local office who will set these up for free and they are a good insight into just how much you can claim for. for example, claiming part of your rent/mortgage as your business is registered there and you store equipment there (work clothes). it is an eye opener
I’m Limited Company, VAT registered on Flat Rate Scheme.
You drive the truck, your Company invoices the client etc etc, Pay yourself a low wage (PAYE & NI ETC) as a Director of your own firm, then the profits become yours via an Annual Dividend, or more often if you wish.
Setting up the firm is cheap £20 on the internet.
Quarterly VAT returns - can do these yourself
Annual Returns - have to pay an Accountant to do this for you, but if you keep monthly records & receipts it keeps his time down & hence his bill.
It works for me
Speak to an Accountant, local one man band working from his house is cheapest, will probably give you some time & advise for free if he thinks you’ll sign up with him
Driveroneuk:
£8 base rate is nothing like enough. After costs you’d be below min. wage. I’d say needs to be at least 10, better 12.
£8 is the going PAYE agency rate for a C+E Driver in my neck of the woods and
its been that amount for years.
By the time you add employers NI and holiday pay it costs them about £9.60/hr to employ you so they’ll be billing the client at least £10+VAT.
You might get an extra quid for nights and an extra quid if you go self employed,
but only because they don’t pay holiday pay or national insurance for self employed.
As you can see from the above, you’re being conned.
Dieseldoforme:
I thought that Agencies would charge the client much more than that.
I wonder what they charge when they pay the Driver £16 ph for Sunday.
There was a time when agencies were running quite a big mark up due to drivers being in short supply, however as the recession hit and work became hard to find the agencies started undercutting each other to try and get more work and now we’ve had a few years of that I wouldn’t think they have a particularly big mark up at all.
I know back in 2006/2007 one agency that was paying us £8.00/h on a S/E basis was charging £9.50/h to the customer. We went in at £9.00/h direct and got all the work to ourselves.
mucker85:
Just been chatting with a friend and he says you need to have a partner as a ltd co. you need 2 directors of a ltd co?
If you believe that you`ll believe …
its financially advantagious to have SWMBO as the company secertary
but theres nothing stopping you being the only shareholder and director of your own company
Maybe you should consider attending the HMRC course on “becoming a director”
mucker85:
Just been chatting with a friend and he says you need to have a partner as a ltd co. you need 2 directors of a ltd co?
If you believe that you`ll believe …
its financially advantagious to have SWMBO as the company secertary
but theres nothing stopping you being the only shareholder and director of your own company
Maybe you should consider attending the HMRC course on “becoming a director”
paul your example is wrong because you have calculated 10% of the gross figure (nett + vat ) and it should only be calculated on the vat charged out at 20% and so the original example was correct, i.e
nett…£100.00
vat @20%…£ 20.00
gross…£120.00
therefor if the equivelent flat rate is 10% charged out then it would be £10.00 in your pocket
plenty of police helicopters fly over our estate in Manchester! I call the wife the company secretary, I’m the director and she’s an accountant by trade! Easy life!
weewulliewinkie:
paul your example is wrong because you have calculated 10% of the gross figure (nett + vat ) and it should only be calculated on the vat charged out at 20% and so the original example was correct
No, my example is right. Read the link I quoted which clearly states that you pay 10% of your “flat rate turnover” and that the flat rate turnover is made up of “vat inclusive sales”.
which in the “Common errors made on VAT returns” section states that one of the common errors is “VAT exclusive figure is put in box 6, meaning that the flat rate is applied to the net, rather than the gross turnover.” From this thread it seems several people have made that common error.
that covers
