I’d imagine she could afford a half decent accountant and legal advice and still fell foul of HMRC.
She was wasting her time as 95% of the ltd company drivers I speak to are financial genius and assure me they will never come a cropper while robbing the tax man blind.
She should of asked for advice off a lorry driver…
I have posted before that my belief his that HMRC has deliberately let this build across a few years so as then they can send the bills out that people won’t be able to pay meaning they will incur penalties and interest. This will massively increase the total take even if it takes longer to get it
Terry T:
Personally I can’t wait for her madge’s henchmen to close all this down. It’s been a scam since the get go and done nothing but harm to our industry.The biggest harm coming in the form of depressed wages as clueless drivers think getting a quid an hour on top of PAYE makes them better off.
I don’t know how many times the authorities have to say unless you have your own truck you’re not self employed yet still the agencies are touting this nonsense and every week a new thread on how to set up LTD or Umbrella.
You must be nuts getting into all this now.
Perhaps some want the flexibility of working when they want. I am glad I don’t work ‘directly’, given the attitudes and actions of so called ‘employee drivers’ (leave truck a mess, leave all their stuff in so no other bugger can put theirs in, locking lockers because ‘their’ stuff is in it, bits of paper from last weeks fuel, carry out receipt or whatever lying about, not re-fuelling or ad-blueing it, etc) am glad I am employed by someone else. I can walk away from it.
Terry T:
Personally I can’t wait for her madge’s henchmen to close all this down. It’s been a scam since the get go and done nothing but harm to our industry.The biggest harm coming in the form of depressed wages as clueless drivers think getting a quid an hour on top of PAYE makes them better off.
I don’t know how many times the authorities have to say unless you have your own truck you’re not self employed yet still the agencies are touting this nonsense and every week a new thread on how to set up LTD or Umbrella.
You must be nuts getting into all this now.
Stop telling the truth Terry.
You are spoiling the illusion 
kcrussell25:
Terry T:
Personally I can’t wait for her madge’s henchmen to close all this down. It’s been a scam since the get go and done nothing but harm to our industry.The biggest harm coming in the form of depressed wages as clueless drivers think getting a quid an hour on top of PAYE makes them better off.
I don’t know how many times the authorities have to say unless you have your own truck you’re not self employed yet still the agencies are touting this nonsense and every week a new thread on how to set up LTD or Umbrella.
You must be nuts getting into all this now.
I have seen posts on Facebook (so I have no idea if its true) of LTD drivers earning £35-40k. Nothing special there when you factor in the loss of holidays etc. However they then claim to only pay £1-2k tax a year at most. All down to the “expenses” of running the business. If this is correct then that 35-40 is now worth more like 43-50k on paye. Suddenly the quid an hour seems worth it.
Until of course the taxman questions these “expenses”
Oooh please let me know who these companies are because they don’t seem to exist in Scotland! Up here if you maxed it out (but you need time for domestic/health stuff) I’d say 25-30k more like it and that is if you work weekends all the time.
Sand Fisher:
kcrussell25:
Terry T:
Personally I can’t wait for her madge’s henchmen to close all this down. It’s been a scam since the get go and done nothing but harm to our industry.The biggest harm coming in the form of depressed wages as clueless drivers think getting a quid an hour on top of PAYE makes them better off.
I don’t know how many times the authorities have to say unless you have your own truck you’re not self employed yet still the agencies are touting this nonsense and every week a new thread on how to set up LTD or Umbrella.
You must be nuts getting into all this now.
I have seen posts on Facebook (so I have no idea if its true) of LTD drivers earning £35-40k. Nothing special there when you factor in the loss of holidays etc. However they then claim to only pay £1-2k tax a year at most. All down to the “expenses” of running the business. If this is correct then that 35-40 is now worth more like 43-50k on paye. Suddenly the quid an hour seems worth it.
Until of course the taxman questions these “expenses”
Oooh please let me know who these companies are because they don’t seem to exist in Scotland! Up here if you maxed it out (but you need time for domestic/health stuff) I’d say 25-30k more like it and that is if you work weekends all the time.
He didn’t say and as I posted I don’t know if its true. No offense but Scotland is low pay. I am in south lincs and earn about £34k paye on Sunday to Thursday, plus nights out. Head to Northampton and its even more.
In my old job we had deliveries from Northampton and there was a guy from Glasgow who came sometimes. He did a month at Northampton on agency staying in a campervan and went home for 6-8 weeks. He could earn as much doing that as full time in Glasgow
robbo99.:
The £1 an hour extra that the ltd co driver gets is just the beginning of the benefits he / she gains, they draw a minimum salary which incurs no ni liability and no income tax liability, they then offset certain business costs against their tax and also draw remainder of profits (wages) as dividends which has a tax free threshold which once reached is taxed at low rates above and beyond, and no ni to pay on dividends. When full expenses were claimable and the flat rate vat scheme were so generous it was kerching all round. The writing though now is on the wall.
You’re looking at it from the wrong angle.
There’s loads of jobs on places like Indeed and Reed offering Class 1 work for £11-12 per hour on days. This sounds like a decent rate until you spot that it’s LTD or Scumbrella.
In the past when I was an engineer when doing the LTD scam (coz that’s what it was/is, a scam) we always got 25% on top of the PAYE guys. Not that there were any. None that I knew anyway but hypothetically. If you subtract 25% from £12 it’s actually quite a poor paying job but drivers only see the biggest figure and think they’re quids in. They then have to make it pay by making untold spurious expenses claims which will probably bite them right on the ■■■ at some point in the future.
Some companies have whole sections of their workforce on this scam. Like DHL drivers at JLR. Most are agency drivers running LTD companies. There’s ads for them on every job site I’ve ever been on. I’d be very surprised if HMRC don’t have them in their sights for a future full on ■■■■■■■ job.
So many drivers willing to do this has pegged the overall wages at the LTD rates which you need to make ridiculous expenses claims to make them look good.
Terry T:
robbo99.:
The £1 an hour extra that the ltd co driver gets is just the beginning of the benefits he / she gains, they draw a minimum salary which incurs no ni liability and no income tax liability, they then offset certain business costs against their tax and also draw remainder of profits (wages) as dividends which has a tax free threshold which once reached is taxed at low rates above and beyond, and no ni to pay on dividends. When full expenses were claimable and the flat rate vat scheme were so generous it was kerching all round. The writing though now is on the wall.You’re looking at it from the wrong angle.
There’s loads of jobs on places like Indeed and Reed offering Class 1 work for £11-12 per hour on days. This sounds like a decent rate until you spot that it’s LTD or Scumbrella.
In the past when I was an engineer when doing the LTD scam (coz that’s what it was/is, a scam) we always got 25% on top of the PAYE guys. Not that there were any. None that I knew anyway but hypothetically. If you subtract 25% from £12 it’s actually quite a poor paying job but drivers only see the biggest figure and think they’re quids in. They then have to make it pay by making untold spurious expenses claims which will probably bite them right on the ■■■ at some point in the future.
Some companies have whole sections of their workforce on this scam. Like DHL drivers at JLR. Most are agency drivers running LTD companies. There’s ads for them on every job site I’ve ever been on. I’d be very surprised if HMRC don’t have them in their sights for a future full on ■■■■■■■ job.
So many drivers willing to do this has pegged the overall wages at the LTD rates which you need to make ridiculous expenses claims to make them look good.
The norm for ltd contractors is to draw a small salary which incurs no NI but gains NI credits and draw the remainder as dividends which also incurs no NI. PAYE pay Class 1 NI. Rightly or wrongly having no NI liability makes a very big difference to pounds in the pocket.