Hi guys, i’m looking for some help. I am applying to work on a job through an agency who only use Ltd drivers and as I’ve always been PAYE i’m abit stuck as to which direction to go. Can i set it up myself? If i get the job i plan on using an accountant to sort my tax but if i dont get it i wont need an accountant so dont want to be paying for one.
I want to fill in the application asap as I’ve heard they’ll be taking on new drivers soon but the section where its asking for my company name/payment details is delaying me.
Thanks in advance
Set it up yourself. Pretty much all the info you need will be on the Companies House website.
But, I’d be inclined not to go down this route at all. There are many many threads on here that discuss the merits of Ltd Co status and the outlook isn’t good. Tell your agency it’s PAYE or you’re gonna walk. You won’t get enough on your rate to cover for the loss of holiday money, your accountants fees or your NI contributions to make a decent enough profit. My agency have taken everyone off the Ltd and umbrella status. They aren’t doing it because they give a ■■■■ about us, they give a ■■■■ about the taxman possibly kicking their arse over un-paid bills.
I dissolved my company some years ago and two other good friends of mine have both in the last two years stopped trading.
I’m not going into the lengthy arguments about whether or not you can actually be Ltd and work for one client.
Set it up yourself. Pretty much all the info you need will be on the Companies House website.
But, I’d be inclined not to go down this route at all. There are many many threads on here that discuss the merits of Ltd Co status and the outlook isn’t good. Tell your agency it’s PAYE or you’re gonna walk. You won’t get enough on your rate to cover for the loss of holiday money, your accountants fees or your NI contributions to make a decent enough profit. My agency have taken everyone off the Ltd and umbrella status. They aren’t doing it because they give a ■■■■ about us, they give a ■■■■ about the taxman possibly kicking their arse over un-paid bills.
I dissolved my company some years ago and two other good friends of mine have both in the last two years stopped trading.
I’m not going into the lengthy arguments about whether or not you can actually be Ltd and work for one client.
Thanks for the reply but with respect I’m not looking for someone to tell me not to go down the Ltd route. It’s for a well paid job on the tanks so the money side isnt a problem and the way the company recruit is through the agency so its my only option.
He didn’t tell you not to, he gave you some good advice about why it is probably not a good idea, that the job will end up paying alot less than it appears to, and that HMRC may well leave you with a sore bumhole
Nate187:
Hi guys, i’m looking for some help. I am applying to work on a job through an agency who only use Ltd drivers and as I’ve always been PAYE i’m abit stuck as to which direction to go. Can i set it up myself? If i get the job i plan on using an accountant to sort my tax but if i dont get it i wont need an accountant so dont want to be paying for one.
I want to fill in the application asap as I’ve heard they’ll be taking on new drivers soon but the section where its asking for my company name/payment details is delaying me.
Thanks in advance
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And another fool joins the no hopers who think they know what there doing trying to be a independent Ltd company as a sole driver for one company
For every 100 there is always one who believes its true
Its like getting a letter in your door telling you you won a million but you have to ring this number at 3 quid a minute to claim your prize
There is one born every minute
Do it via an accountant, if the accountant agrees it’s a ‘good idea’ to do solus trading via your own LTD company be sure to buy the audit insurance they offer and when your invoices are settled immediately sweep 40% of all income in an account called ‘oh, zb I was warned’ and use the other 60% of income as your actual income/working capital.
Do it via an accountant, if the accountant agrees it’s a ‘good idea’ to do solus trading via your own LTD company be sure to buy the audit insurance they offer and when your invoices are settled immediately sweep 40% of all income in an account called ‘oh, zb I was warned’ and use the other 60% of income as your actual income/working capital/pension/holiday/SSP/days when there is no work
I should have asked for help only from Ltd drivers. I’ve read the other topic about Ltd driving and i didnt want this to get into a debate which is better.
If it was my choice i’d go PAYE all day long but im looking at the long term and i want a full time job in this place where you are PAYE but to get in there i have to down the ltd company agency route.
So back on topic…is there anyone who’s set up a Ltd company themselfs who could help me?
A few people (me included) have said to see an accountant . The first talk is only 15/20 pounds . Any fees you pay come off your tax bill anyway so are effectually free.
Builder mate of mine had an 18 grand tax bill so bought a new van , tax bill wiped out and a shiny new motor - win win.
joe royal:
A few people (me included) have said to see an accountant . The first talk is only 15/20 pounds . Any fees you pay come off your tax bill anyway so are effectually free.
Builder mate of mine had an 18 grand tax bill so bought a new van , tax bill wiped out and a shiny new motor - win win.
Companies House - buy one, set it up, think it cost me about £25. Don’t use one of the many agencies, piece of wee to do it yourself.
Register for VAT - easy online, can help with fixed rate returns.
Get a good accountant, not Dodgy Dave from the pub, my mates mate, a proper certified chap (I was quoted for one year his fees would be in the order of £3000)
Work, earn money.
Put money aside as previously said at 40% of your invoices paid
Keep all your paperwork, invoices, receipts etc etc
Once a year do the Company return, £12 = legitimate expense to be claimed.
Tax return at your own year end tax declaration. Your over paid accountant will do this for you.
If you are lucky, take a minimum wage, pay your NI, pension, savings etc.
Then once in a while, take a dividend from the company which only attracts 19% tax.
Don’t forget your personal tax return as well…
Your accountant if he’s a good’un, can help you shed loads.
Hi there. I e set up a few in the past using a company called
Companies made simple. A quick google will find them and they’ll have you up Nd running in no time.
Save you more than the reasonable fee they are worth.
carlston49:
Don’t go VAT registered. If you do, you will have to keep much better accounting records and do VAT returns. Not worth it at all.
If your turnover is significant enough to be VAT registered you would be daft not to go VAT reg and employ an accountant because you have the budget to employ someone to do all that stuff you don’t understand and which will trip you up, eventually.
Nate187:
I am applying to work on a job through an agency who only use Ltd drivers
Not getting into the Do Don’t I … but I thought they couldn’t specify just Ltd ? And had to offer PAYE as well?
Personally couldn’t care less what the job was but the agency sounds like one to avoid. They seem to be doing their best to avoid accountability by saying LTD only?
Nate187:
I should have asked for help only from Ltd drivers. I’ve read the other topic about Ltd driving and i didnt want this to get into a debate which is better.
If it was my choice i’d go PAYE all day long but im looking at the long term and i want a full time job in this place where you are PAYE but to get in there i have to down the ltd company agency route.
So back on topic…is there anyone who’s set up a Ltd company themselfs who could help me?
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The problem you have to contend with is that the Government is clamping down and intends to clamp down further on people providing their services through intermediaries. Not sure how this affects ■■■ workers, but hey ho!
In time, probably next tax year agencies will be putting in arrangements to effectively pay you as a glorified PAYE but without the benefits of pension, holiday pay etc if you go Ltd.
Now I work for my own Ltd Co., but our business does employ more than just me and we do different jobs across a range of sectors not just one job 5/6 days a week for one end client and our business existed prior to working with others.
Advice: Only go Ltd if it suits you not the ruddy agency!! And DO CHECK the IR web pages on you Gov. You’ll probably need a lawyer too to untangle it all. If you have it your contract that you can send a substitute and that you are genuinely taking risks you might pass the IR35 test but it is a minefield and getting more difficult. Don’t be surprised if the agency does a u-turn in 12 months time.
joe royal:
A few people (me included) have said to see an accountant . The first talk is only 15/20 pounds . Any fees you pay come off your tax bill anyway so are effectually free.
Builder mate of mine had an 18 grand tax bill so bought a new van , tax bill wiped out and a shiny new motor - win win.
They know what to do .
Oh. Dear. Here people we have a shining example of why some truck drivers shouldn’t set up as a business doing it. Please god don’t tell me you’re in business. If you are pack in now because you don’t even understand the basic fundamentals of how income/corp tax works.
Yes the first talk is £20 and yes its tax deductible but it isn’t free, you’re still going to be forking out 100% of the cost, you’ll just reduce the tax bill by £3.80 but you’ll still ultimately end up forking out £20. Your builder mate might have had an £18 grand tax bill but unless the van he bought cost £94,737 it didn’t wipe out his tax bill and the van still cost him what he paid for it, he merely paid what he would have paid on the tax on that profit in his business to the van dealer instead of HMRC. It may have reduced the tax bill by 19% what he paid for the van but it didn’t wipe his tax bill out.
NoClass:
If your turnover is significant enough to be VAT registered you would be daft not to go VAT reg
If your turnover is significant enough to be VAT registered YOU HAVE NO CHOICE but to be VAT registered because the law requires you must be once you reach the threshold. If you don’t you’re committing tax fraud.
£3K for an accountant ■■ Christ he / she better be good at that rate. Should be more like £450/£500 plus VAT. You’re only going to be a one man band after all, not a lot of adding up and subtracting to do. In accountancy terms, couldn’t be simpler.
VAT - well unless you’re turning over just over £7K a month why on earth would you even consider it?
