Hello everyone, so Ive been working through an agency now as a LTD company for around 5 months with an hourly rate of £9.50, so all in all with the previous class 2 job I had Ive been driving for roughly 1.5 years, I figured Ive got a little experience under my belt now, for the last 5 months with the agency Ive worked every day Ive wanted to and am generally being asked back by name from a good few places and Ive also been offered a couple of full time positions.
Now its come to the point where I will have to pay NI contributions because Ive gone over the £8060 threshold and with not being able to claim travel allowance/mileage anymore its got to the point where I NEED to demand a higher rate from the agency or go full time because I’m simply not earning enough, I’m now on a good bit less than the full time drivers + I don’t get paid holidays and such, now I would prefer not to go full time if I’m honest because I really like the variety agency work provides plus I get incredibly burned out working at any full time position for any significant length of time, horses for courses.
So what would an acceptable hourly rate be to ask from the agency? £11.50?
Problem is you have worked for a relatively low rate especially being Ltd if you ask me… Whether they will listen to ur plea for a better rate there are always other agencies if not… I’m on over 11.50 an hour paye
Don’t forget Hmrc are investigating all this Ltd/umbrella company con. So make sure you put some money aside for the unexpected bill from the tax man because your agency won’t take responsibility for it.
You are talking about 'the agency ’ in the singular. Does that mean that this agency is the only agency/company you work for? Then you are not self employed, and the sooner the tax man puts a stop to this scam, the better. As for wanting a better rate ‘now that you need to start paying N.I. contributions and tax’ after taking £9.50 for 5 months (with the sole motivation of avoiding paying tax), and needing to ask what a decent rate is, I come to the conclusion that you are a plant pot… And dragging down the profession.
Hahaha. £9.50 as limited company…no mileage or expenses??
I’m on a cushy umbrella gig. Impressive hourly. Fixed expenses and travel expenses. No fool though. Only short term then I’m back to the grind of full time employed
CraigM:
I’m on a cushy umbrella gig. Impressive hourly. Fixed expenses and travel expenses. No fool though. Only short term then I’m back to the grind of full time employed
Hope you’re putting aside plenty of money for the tax bill.
CraigM:
I’m on a cushy umbrella gig. Impressive hourly. Fixed expenses and travel expenses. No fool though. Only short term then I’m back to the grind of full time employed
Hope you’re putting aside plenty of money for the tax bill.
I’ll barely show up on the radar compared to the thousands milking it far more than me.
Dear God £9.50 ph LTD! Bet u get plenty of work at those rates & no wonder. They’ll be loving you. No expenses, no mileage & having to fund your own hols on £9.50 ph! I recently changed from Ltd on £19.25 ph back to PAYE £18.03 ph because the £1.22 difference per hour was not viable. I seem to remember Winseer, I think, state that LTD had to be approx £2.85 ph more than PAYE to be viable. £9.50 ph LTD is definetly “plant pot” territory!!
I recently started a ltd however good old agency’s being agency’s give me the bottom of the barrel work you know what’s left. The problem with it is there not taking in to consideration your account fees or holiday these are around £1.10 an hour to your rate based on 48 hours. Best way is to find out what there boys on paye get then add that £1.10 to it this is what I do. but some agency’s don’t care just give you the pays rate so they can make more money, I’m only new to class 1 and realise I have no experience this is why I’m not getting the tasty jobs. I got offers £110 a night shift go 5 days week arctic through ltd I said I want £700 a week, he said ■■■■ off and that’s in Portsmouth. The other thing you need to think about is the 48 hour avarage over 17 weeks if you don’t work on paye for a firm that’s your responseabilty so your hourly rate has to reflect that as you need to avarage that 48 hours or you can end up having to take time off to satisfy that. Basically you need £15 a hour and finding that is like a needle in a hey stack.
Depends how long the night shift is if it 10 hrs its not the end of the world. With agencies you cannot set your own rate you have to take there rate if you want to set your own rates then go get your own customers directly
Ok sounds like getting out of the whole LTD company thing is a good idea, I wasn’t aware that it was illegal, I was aware £9.50 was a low rate but I figured I needed to get my foot in the door, maybe ill see if they or any other agency can offer a reasonable rate for PAYE or alternatively just go full time.
Its long been a source of amusement for me, this situation… There are guys looking for a full time job and can’t get a step on the ladder because they do not have the covetted “2yrs experience”. And yet, at the same time, someone who has barely passed his test can set himself up as a Ltd. Company, and be his own “Director” of his company, charge clueless rates and no one is really bothered… Well, until he decides its not working out !! At the same time as not knowing his arse from his elbow as regards driving a truck, he wouldn’t know his arse from his elbow as regards running a Ltd Company either. And a “Contract” is one of them things you get with your fone innit ?
Thats not a pop at the OP or anyone in general, its just an observation having seen this many times before.
Always makes me grin when a driver tells me he’s a “director” of his own Company Sure you are bud!!! And you have a great big accountants bill and no shareholders xmas party with your exies !!!
alix776:
950 per hour if there’s no other would be worth doing. All these that’s a rubbish rate need to get in to the real world many driver earn much less
Back up a bit Al ? Topic is : Hourly rate for LTD Company ? If a Ltd. Co can’t make more than £9.50 PH, how it gonna comply with holiday legislation, pay for accountancy fees, allowable expenses . etc… Or ? Are we suggesting that being a LTD co. allows you to circumvent holiday pay, bank holiday pay…employers NI etc… ?
If it does allow one to circumvent it, to what benefit ? Certainley if you where on x amount i could see it might be worth it, but…£9.50 ph ? and we even have to discuss IF its worth it ?
To compete financially with a PAYE employee i would suggest a LTD co needs to earn at least… £15ph. At the least. If you’re not doing this as a Ltd Co, then its because it suits your own lifestyle, and there can be no argument over that. Even £15ph is gonna put you in the same financial place as many regular employed guys. If you’re providing a niche/adhoc service then i’d suggest that rate needs to be a good bit higher !!!
But hey, i just realised…recent talk about a driver shortage ? If rates can be £9.50ph for a Ltd co when there is a shortage then god help you when its filled ! There is just no where lower to go ?
‘Limited’ is not for everyone, especially not for those who live week to week and like to ■■■■ their wages in the pub or those who tramp out all week so their mrs can claim single parent benefits.
As for the big tax and accounting bills, that’s nonsense, as for the Hmrc investigating, nonsense, as long as the Ltd company has sourced ‘various’ clients to work for over the financial year there’s nothing Hmrc can do. I believe some are getting Limited [company] mixed up with self-employed [sole trader], there is a BIG difference. It’s true self-employed (sole traders) are being investigated by HMRC but I cannot see them looking into Limited Companies any time soon as most politicians have one.
Although I work under my Limited Company I am still ‘employed’ (PAYE). However, I take a small wage out each month (under the Tax & NI threshold) then take a £5000 tax free dividend each year, this amounts to £13000 per annum, tax free. You may think £13000 isn’t a lot but when you take into consideration my outgoings are also reduced as most of them are covered by the Limited Company, you may recognise the benefit. As for holiday pay, Statutory sick pay, yes I get that too! I understand this isn’t for everyone, hence my opening line.
Sure you are bud!!! And you have a great big accountants bill and no shareholders xmas party with your exies !!! 