alix776:
Yes while that is true in the real world that doesn’t always happen especially with small companies my guess is that he’ll just be expected to carry on as normal no redundancy or anything just finish employed Friday start se on the Monday it’s that simple
Didn’t Peter Cook try that?
peirre:
SWEDISH BLUE:
If you become a Ltd Co, and you have a serious accident, then the corporate manslaughter charge will stop at you and NOT the owner.Which is why they invented public liability insurance
PLI won’t absolve you of corporate manslaughter charges !! I do agree with you that he should take redundacy and or any payment to go with it though. Leaves him in a good position to follow the matter though if he feels that he was made redundant when he shouldn’t of been. i.e his job is actually still there.
PLI doesn’t absolve anyone (employer, employee, or owner) of the risks involved … Even if there’s any possibility of “manslaughter”
Another thing that everyones seemed to have overlooked, if the OP goes S/E & that is IR35.
TBH I think the wisest thing the OP should do is not be pushed into self employment, but get the he’ll out of there sharpish then phone the guys at the daily mirror, they seem to have a bee in their bonnet about companies pushing their employees into self employment.
Anyone considering going self employed should never be pushed into it, but they should weigh up the options. Then decide IF its for them
Problem is most people have only been employed by him for about a year so no redundancy pay, i think the whole thing sounds like some sort of scam whether he and his accountant are on some tax fiddle or something. Suppose i best get job hunting.
ant2503:
i think the whole thing sounds like some sort of scam whether he and his accountant are on some tax fiddle or something.
Hes probably contacted, or been contacted by one of the many umbrella companies out there, and figured out that its adventagious for him to off load his work force onto self employment, but yet hope theyre dumb enough to stick with him when he dangles various runs in front of them, dictating the price for the job as well
ant2503:
Suppose i best get job hunting.
get smart … string him along telling him your contemplating his “idea” but it could take several weeks to put in place. (tell him your off to see the accountant, bank etc etc) Even though you have no intention of doing it. ignore all offers of advice, especially if it involves meeting someone whos involved with an umbrella Co. That way hell be dumb enough to keep you on the books for the next few weeks while you look for alternative employment … then drop him in the brown stuff, & get the hell out of dodge
fuse:
Why whats in it for him,apart from him handing you the worry,inland revwill not wear it …you will have to adhere to the silly WTD ,
He doesn’t have to pay employers NI on your wages which OTTOMH is 12.8%. In addition to that, there’s no holiday pay to pay so on wages alone, he’s cut the bill by roughly 25%.
In addition to that, because you’re not employed he can give you work or stand you down with no pay.
In short, its a win win for him BUT as others have said, he cannot decide if you’re self employed - thats for HMRC.
what about the situation if you are self employed or your own ltd company and you have a big accident thats your fault how do you stand then 
I work under an Umbrella, NASA Consulting which I recommend if you do decide to go for it. You won’t get a better service any cheaper.
BUT, as has been said. The employer doesn’t pay holidays or the NI contribution. Make sure BOTH of those payments come to you instead in your weekly pay. If he wants you to do it for the same rate tell him to stick it. I get 25% more pay than the PAYE guys at my place.
Terry you will get it cheaper by doing it yourself both myself and Quinny are se drivers I think Quinny is Ltd and I operate under a Ltd company myself
This is interesting because the very OBVIOUS has been missed by everybody
The boss says he wants everyone to become self employed or he’ll make them redundant ?
Ok so you become self employed you have LEFT the occupation officially as an employee, in the same way as if you have left to go work elsewhere
So if you have say 5 years service then you have litterally waved goodbye to your redundancy because you left voluntarily to become self employed, call me an optomist but what if after 4 weeks of becoming self employed the boss either folds the company or cuts back on the number of self employed, your going to be stuffed because
A) you no longer work for him as an employee
and
B) he has no legal obligation to continue to employ you as self employed
Personally I’d be telling him to issue the redundancy notice
As for Ltd Company’s yes you can employ an accountant to do everything from handling your pay to filing company accounts but they dont come cheap, and I’d say the £400 quoted in this thread is only for basic work, you go to an accountant with 1 yrs worth of invoices and believe me, it will be a ■■■■ sight more than £400 as the invoices etc all have to be in dated order, add to this that if you are Vat registered you have to submit a VAT return every 3 months, which admittedly you can do yourself but is time consuming and everything you claim for MUST have a reciept or invoice and must be kept for 7 years. You would also be invoicing him for the work you do therefore invoices have to be drawn up and again, kept for 7 years, there’s also the consideration of what if he starts paying monthly then it becomes 2 monthly then it stops altogether, where do you draw the line at the amount he owes you?
Peter Cook in Durham employed drivers as Owner drivers hiring them his own trucks which was a lot different to this 
jessicas dad:
what about the situation if you are self employed or your own ltd company and you have a big accident thats your fault how do you stand then
you end up burried deep in the brown stuff, but if you have sufficient insurance cover, as every company should have 
your covered. Deciding exactly what cover is req`d is down to the individual, and what work they are doing, along with the clients requirements
Personnelly I have £5-£10 million worth of PLI, which costs around £100-£130 per year.
Adding a megre £25K worth of GIT will potentially set you back another £800 per year
alix776:
Terry you will get it cheaper by doing it yourself both myself and Quinny are se drivers I think Quinny is Ltd and I operate under a Ltd company myself
I concur … Im Ltd Co, & VAT regd
However IMHO you do need a small amount of inteligence/common sense/computer literacy.
Or Have someone in the family who is, to do the invoicing, and keep track of daily/weekly/monthly book keeping
which takes me around 10-30mins per week. its this part that scares most people off, & why they go to the umbrella Co`s.
but with a small amount of confidence, the guidance of a good accountant, attending a couple of HMRC`s free business education seminars to understand the basic tax mechanism is a good idea. Anyone can grasp book keeping 101
Davey Driver:
where do you draw the line at the amount he owes you?
Thats where credit control comes into it. I never do more than a couple of small jobs for a company without checking them out. D&B is a simple way of checking their DUNS number/rating.
doing a full credit check on them can be more time consuming. But just setting a credit limit for that company, & sticking to it is probably the easiest
Davey 400 is about right for full service or maybe my accountants just a good one
Git shouldn’t be needed at all as they will be covered by the company you are working for.
As for pl no it wouldn’t cover you as a driver you cannot get insurance to cover you for losses if an accident was your fault the only way to do it is to insure what you are driving your self
As for invoicing I do all mine on my phone which is emailed to the customer and cc to my email address
It takes 5 mins to do the Invoicing each week
Pierre are I’m flat rate or standard rate vat
alix776:
125 pounds to register at companies house or just infirm hmrc is going sole traderCountry to popular belief you can’t claim vat on most things you buy you won’t make money on it as Ltd better to go for flat rate scheme
it’s only £20 to register & start your company up,don’t fall for these firms on the net that will charge you silly money to do it.
you don’t need to be vat registered if your not earning more than 70k
why do you need to be a ltd co? you can be a sole trader you need to look whats best for you
tax advantages arnt what they used to be for ltd co’s
Moose:
why do you need to be a ltd co? you can be a sole trader you need to look whats best for you
tax advantages arnt what they used to be for ltd co’s
peirre:
As for sole trader status, a lot of companies insist you are Ltd co. And won’t deal with anyone who’s a sole trader
As a sole trader, its you who`s liable. you could potentially loose all your personnel assests if something goes wrong and they sue for losses, as a ltd Co its the company thats liable, so all your personnel assests as ring fenced. Should it go pear shaped you could fold the company and walk away
jrl driver:
you don’t need to be vat registered if your not earning more than 70k
correct… but you can be.
If like me you keep a copy of your book keeping on a spreadsheet, then the figures to enter onto the online VAT return are readily available and take 5-10 mins to complete an online VAT return
alix776:
Pierre are I’m flat rate or standard rate vat
Eh? …I`m full fat atm
This thread is fast becoming entertaining 
been an o/d since 1997 and also do other repair work to did once look at going ltd but wont be doing any time soon
Have a look at the flat rate scheme Pierre you should make some money out of it
Just a thought.
The ‘Operator’ of the vehicle is the employer of the driver, unless the driver is an ‘owner driver.’ If you go ‘self-employed’ even via a ltd co, you may well find that legally you (your company) needs to hold the O-licence. If you are running the vehicle on the (ex)bosses O-licence that could open a very large can of worms.
Isnt that a Peter cook senario gb or am I missing something
alix776:
Have a look at the flat rate scheme Pierre you should make some money out of it
I’m not in the transport game, I’m a service engineer but the principle is the same.
I’m a partner with my wife (not a Ltd company) so we get to use her tax allowances as she doesn’t do any other paid work.
I’m on the flat rate VAT scheme which in my case is 10%. I charge my customers 20% but only pay the VAT man 10% of my gross takings.
The down side is I can’t claim back VAT on purchases under £2000. Items such as a new van costing over £2000 I can claim back the VAT.
Working out the quarterly VAT return is a 10 minute job as you don’t need to record your expenses for VAT purposes.
This avoids the hassle of calculating the VAT element of every receipt.
You do need to record expenses for income tax though, and pay class 2 and 4 national insurance.
I make a decent amount from the flat rate VAT which is what I started the post to say.