was wondering what seems to be the average pay for limited set up agency drivers includingthe 20% vat for a typical mon to friday
stvme2519:
was wondering what seems to be the average pay for limited set up agency drivers includingthe 20% vat for a typical mon to friday
minimum £200 a day! Bag of sand a week! 
£1,000! 
£300 sat and £400 sun 
that’s what I charge/ invoice OR I DON’T WORK 
Rates can vary from place to place but around the Liverpool area weekday rates are about £9.00 days and £10 nights. (per hour on a PAYE basis)
If you go Ltd then you could expect an extra £1.00 per hour. Some people claim they can get more but I don’t see that.
Some like the Agency for Hermes will pay a bigger weekday rate but you are expected to work some weekends for the same rate. It was £10.30 on a PAYE basis.
If you sign up for the flat rate VAT scheme it would give you an extra £8 per £100 earnings on the basis that the transport rate is 10%.
So if you invoice £100 and charge VAT at 20% that is £120. You then need to send 10% of the gross sales to the VAT man and 10% of £120 is £12 leaving an extra £8 as company profit.
However as your profit has increased by £8 you will have to pay corporation tax on this of £1.60 giving a nett £6.40.
In your first year you would be eligible for a 1% discount making your bill to the VAT man £10.80 giving a gain of £9.20 less the CT.
As with all things individual circumstances can change the picture.
shake:
Rates can vary from place to place but around the Liverpool area weekday rates are about £9.00 days and £10 nights. (per hour on a PAYE basis)If you go Ltd then you could expect an extra £1.00 per hour. Some people claim they can get more but I don’t see that.
Some like the Agency for Hermes will pay a bigger weekday rate but you are expected to work some weekends for the same rate. It was £10.30 on a PAYE basis.
If you sign up for the flat rate VAT scheme it would give you an extra £8 per £100 earnings on the basis that the transport rate is 10%.
So if you invoice £100 and charge VAT at 20% that is £120. You then need to send 10% of the gross sales to the VAT man and 10% of £120 is £12 leaving an extra £8 as company profit.
However as your profit has increased by £8 you will have to pay corporation tax on this of £1.60 giving a nett £6.40.
In your first year you would be eligible for a 1% discount making your bill to the VAT man £10.80 giving a gain of £9.20 less the CT.
As with all things individual circumstances can change the picture.
I’m a ltd co. and get more than £1 over the PAYE rate at the 2 agencies I currently contract too, £2.50 an hour in fact because I asked the question and negotiated. Obviously as you would expect they initially ummed and arrred and fed the usual line of we don’t make much of a margin on you as it is, I explained that the £1 doesn’t cover the 12.07% holiday pay and employers national insurance contributions they would have to pay and they agreed. Maybe I could have got more but if you get too greedy you may find yourself sat at home more. I’m happy with the extra over PAYE rates I get but I know some people at the same place accept the £1 per hour more for doing the exact same job as me, basically you don’t ask you don’t get.
stvme2519:
was wondering what seems to be the average pay for limited set up agency drivers includingthe 20% vat for a typical mon to friday
Totally depends on location in the UK because there can be a reasonable variation in rates. I see your in the West Midlands - not sure where in the region you are but I’m in the East Midlands where rates tend to be very similar. On days (because I don’t do nights) the rates I’ve negotiated are £13 Mon-Fri, £16 Saturday and £18 Sunday. One tip don’t accept the £1 per hour more than the PAYE rates that virtually all agencies will quote you. The 12.07% holiday pay and employers NI contributions equate to more than this considerably. Whatever you get as Shake described very well you then 20% on top of too.
tmcassett:
stvme2519:
was wondering what seems to be the average pay for limited set up agency drivers includingthe 20% vat for a typical mon to fridayTotally depends on location in the UK because there can be a reasonable variation in rates. I see your in the West Midlands - not sure where in the region you are but I’m in the East Midlands where rates tend to be very similar. On days (because I don’t do nights) the rates I’ve negotiated are £13 Mon-Fri, £16 Saturday and £18 Sunday. One tip don’t accept the £1 per hour more than the PAYE rates that virtually all agencies will quote you. The 12.07% holiday pay and employers NI contributions equate to more than this considerably. Whatever you get as Shake described very well you then 20% on top of too.
Hi Tm
Would it be possible to say who these agencies are. Because if they operate around me I would certainly try to get better rates for myself.
Thanks
shake:
Rates can vary from place to place but around the Liverpool area weekday rates are about £9.00 days and £10 nights. (per hour on a PAYE basis)If you go Ltd then you could expect an extra £1.00 per hour. Some people claim they can get more but I don’t see that.
Prestige Recruitment pay at least £3/hr more for Ltd. Guy I work for is billing £15/hr+VAT and paying us £10/hr on PAYE. Although I’d already worked it out he even volunteered he makes £2/hr out of us. I know that one of his clients when they said he was too expensive and weren’t going to pay breaks had a change of heart after ringing around basically every agency within 40 miles to enquire about drivers to be told no chance at less than that with one allegedly laughing down the phone at them.
So I would say £15/hr+VAT straight through. They won’t give a toss about the VAT because they’ll just reclaim what you charge anyway.
When it comes to working out a rate when you’re VAT registered, ignore the VAT. Do not make it cheaper because the figure with VAT added looks ridiculously expensive. A VAT registered client reclaims 100% of the VAT you charge and offsets it against what they have to pay so the VAT costs them nothing at all, it only costs them what your exc-VAT rate is.
If there’s no one around who’ll do it for less - YOU can charge more - and get it.
Simple supply and demand.
The happiest driver is the one who’s got a job that others consider “boring” or “crap” in some way, but they themselves love it.
“Good Pay” for the hours goes without saying of course…
Pay is already rising for multidrop delivery drivers - because so many people hate it, they’ll do it for a week, and jack it in.
Imagine how much anyone would coin it in - IF they actually LIKED that kind of work? 
10-12 pr hr seams to be the about the going rate having said that I charge day rate that I’m happy with. Most companies wont go above the day rate I charge in the area and some that have asked me to work for them have said its too high which my response is better ring an agency then. Which what there trying to avoid in the first place.
having said that I don’t charge vat any more.