I know F all about this other than that it will affect working as a ltd company driver.
Will working as a ltd company driver still be possible after April?
Just looking for some info if I wanted to chase the higher rates.
The government is reviewing it at the moment and will say if there be any changes at the budget. At the moment if the reforms do go ahead it will be hard to carry on with Ltd. If you work for a small haulier on a day rate (not hourly rate) you may be able to carry on but the Big boys (DHL Wincanton etc) wont touch you.
I would also think HMRC will be keeping a eye on you after April if you carry on being a driver on Ltd if the reforms do go ahead. I sadly will be going over to paye if it does change.
Higher rates = £1/hr. 
Is the limited company thing like being paid by an umbrella company?
cooper1203:
Is the limited company thing like being paid by an umbrella company?
Sort of.
Tbh I am unsure about most of it.
But the Ltd company rate is like an extra £2 an hour at least in my area.
I need to work F/T til September so I am thinking just go LTD til September and make some money.
I need to do some research though. 
I spoke to a guy who works at Hovis and he was on LTD pay through an umbrella company. They charged him £15 a week which isnt too bad if you can get the hours in.
And that, my friends, is why we are paid peanuts…
adam277:
cooper1203:
Is the limited company thing like being paid by an umbrella company?Sort of.
Tbh I am unsure about most of it.But the Ltd company rate is like an extra £2 an hour at least in my area.
I need to work F/T til September so I am thinking just go LTD til September and make some money.I need to do some research though.
from working in the warehouse you are never better off on a umbrella contract. as you have said they charge you for the privilege of paying you. You end up paying two lots of NI payments (both employers and employees contributions). Also a lot of them don’t pay holiday if you want a holiday fund you have it deducted from your wages AFTER tax and then pay tax on it again when you claim it back.
I worked it out a few years back from memory at minimum wage you had to work in excess of 50 hours before you saw any benefit. The agencies of course wont tell you this because its cheaper for them not to have to deal with your wages or pay any contributions. Not to mention of course that a lot of the umbrella companies used are owned by the agency or the agency is getting a kick back for using them.
adam277:
cooper1203:
Is the limited company thing like being paid by an umbrella company?Sort of.
Tbh I am unsure about most of it.But the Ltd company rate is like an extra £2 an hour at least in my area.
I need to work F/T til September so I am thinking just go LTD til September and make some money.I need to do some research though.
Used umbrella company about 10 year ago, you get a extra £1 but no real tax saving. Ltd using a decent accountant, you will save a lot in tax and pay little in National insurance. But to do it for 5 months would be a total waste of time and you wouldn’t see any benefits what’s so ever.
Think at the moment PAYE is your best option.
elsa Lad:
adam277:
cooper1203:
Is the limited company thing like being paid by an umbrella company?Sort of.
Tbh I am unsure about most of it.But the Ltd company rate is like an extra £2 an hour at least in my area.
I need to work F/T til September so I am thinking just go LTD til September and make some money.I need to do some research though.
Used umbrella company about 10 year ago, you get a extra £1 but no real tax saving. Ltd using a decent accountant, you will save a lot in tax and pay little in National insurance. But to do it for 5 months would be a total waste of time and you wouldn’t see any benefits what’s so ever.
Think at the moment PAYE is your best option.
I was wondering if it was more like that and can see it being a real pain.
Ill stick to paye
I wonder if all those “limited company” “self employed” drivers, who so proudly boast of not paying their NI contributions, will forgo the NHS services, and hopefully they’ll get a deduction on their pension later on.
Under the changes IT IS YOUR CLIENT NOT YOU who decides if you’re in or out of IR35 and if they decide you’re in then they’ll automatically deduct NI and income tax just the same as if it was a PAYE job. Lots of companies are saying their Ltd workers are in IR35 rather than risk a whacking bill from HMRC.
In IT contracting most IT contractors are now being told PAYE or nothing. It’s almost ended working as Ltd in that sector.
Conor:
Under the changes IT IS YOUR CLIENT NOT YOU who decides if you’re in or out of IR35 and if they decide you’re in then they’ll automatically deduct NI and income tax just the same as if it was a PAYE job. Lots of companies are saying their Ltd workers are in IR35 rather than risk a whacking bill from HMRC.In IT contracting most IT contractors are now being told PAYE or nothing. It’s almost ended working as Ltd in that sector.
Yes all our “limited company” drivers have been done away with and told they’ll not be used again.
They used to get £1.20ph more than a full time equivalent so must he raking it in 
It’s nowhere near as good financially as it used to be. For me at least.
I’ve done it for 5 years now and I am going back to PAYE at the start of the new financial year.
You pay tax on any dividends you take over £2k now so it’s less and less attractive.
That’s before mentioning no holiday pay, paying for all your own courses, training etc plus accountant fees
I’ve just received an email from one of the agencies about IR35. The names of people and the agency name has been removed for obvious reasons
but the context of the email is unchanged
Briefing - IR35 and AWR Reforms
Dear Colleagues
As I’m sure you’ll be aware, HMRC proposed changes to workers eligible to operate outside of
IR35 are being reformed as of Monday 6th April 2020.
As of the 6th April large company operators within the UK will need to confirm whether temporary roles completed by contract staff including agency workers are to operate inside or outside of IR35 legislation. Following a long consultation period, gathering due diligence and assessing the varying driver agency roles within our client network it has been determined that our agency drivers fall within IR35 legislation and as such any worker supplied should work on behalf of them under a PAYE employment basis only.
What does this mean to our current Limited Company Drivers?
If you are a limited company driver with us. From the 22nd March 2020, you will only be engaged as a PAYE worker and as such your engagement terms and conditions will reflect this.
We will take the responsibility to ensure correct PAYE and national insurance contributions are collected from your pay at source weekly, and holiday pay will be accrued to enable you time away from work whilst still being paid.
The process to change engagement contracts is simple and your site representatives will be working with you to ensure the change is seamless on the 22nd March.
Changes to PAYE Terms & Conditions
Additional legislation that also takes effect from April 6th relating to the pay and conditions for
agency workers on long term assignments.
As such agency workers will be entitled to certain conditions that reflect those attracted by being employed permanently on the client site you currently work on behalf of Us.
Once we have completed our due diligence a further briefing will be sent out to all drivers detailing sites specific information on pay rates and holidays pay entitlement.
What does this mean to our current PAYE drivers?
If you are currently a PAYE worker, nothing will change in relation to your engagement terms and conditions. If the above pay rates are higher than your current hourly rate, then you will immediately be lifted to the new rate and any applicable increase in holiday entitlement will be reflected in your accrual accounts.
As previously mentioned we support the ethical pay of our workers and as such welcome and embrace the changes proposed to IR35 and will support our clients in the implementation of the new legislation, ensuring agency workers are paid correctly, and on ethical terms and conditions.
What does this mean to our LTD drivers?
Drivers currently working under a PSC contract will be required to transfer to PAYE status and will be paid in line with the above.
Timeline
• 1st Briefing - This is the first of three briefings to our driver network and forms initial communication out
• 2nd Briefing - Will be sent out by Friday the 7th February. This briefing will include more information on what to do and how the legislation changes will affect you – To include FAQ. If you have any questions at all regarding any of the legislation changes, please direct to your sites and we will make sure that we include these in the FAQ document
• 3rd Briefing – Will include site specific information and pay rates you can expect from the sites you work out of. You will receive this by Friday 28th February at the latest.
I hope this information provides some clarity on the impending legislation changes.
Please direct all questions to your site representatives, the more questions we can answer hopefully the better prepared you will all be when the changes take effect.
Please look out for further briefings over the next few weeks.Yours sincerely
Joe Bloggs
Operations Director
peirre:
I’ve just received an email from one of the agencies about IR35. The names of people and the agency name has been removed for obvious reasons
but the context of the email is unchangedBriefing - IR35 and AWR Reforms
Dear Colleagues
As I’m sure you’ll be aware, HMRC proposed changes to workers eligible to operate outside of
IR35 are being reformed as of Monday 6th April 2020.
As of the 6th April large company operators within the UK will need to confirm whether temporary roles completed by contract staff including agency workers are to operate inside or outside of IR35 legislation. Following a long consultation period, gathering due diligence and assessing the varying driver agency roles within our client network it has been determined that our agency drivers fall within IR35 legislation and as such any worker supplied should work on behalf of them under a PAYE employment basis only.
What does this mean to our current Limited Company Drivers?
If you are a limited company driver with us. From the 22nd March 2020, you will only be engaged as a PAYE worker and as such your engagement terms and conditions will reflect this.
We will take the responsibility to ensure correct PAYE and national insurance contributions are collected from your pay at source weekly, and holiday pay will be accrued to enable you time away from work whilst still being paid.
The process to change engagement contracts is simple and your site representatives will be working with you to ensure the change is seamless on the 22nd March.
Changes to PAYE Terms & Conditions
Additional legislation that also takes effect from April 6th relating to the pay and conditions for
agency workers on long term assignments.
As such agency workers will be entitled to certain conditions that reflect those attracted by being employed permanently on the client site you currently work on behalf of Us.
Once we have completed our due diligence a further briefing will be sent out to all drivers detailing sites specific information on pay rates and holidays pay entitlement.
What does this mean to our current PAYE drivers?
If you are currently a PAYE worker, nothing will change in relation to your engagement terms and conditions. If the above pay rates are higher than your current hourly rate, then you will immediately be lifted to the new rate and any applicable increase in holiday entitlement will be reflected in your accrual accounts.
As previously mentioned we support the ethical pay of our workers and as such welcome and embrace the changes proposed to IR35 and will support our clients in the implementation of the new legislation, ensuring agency workers are paid correctly, and on ethical terms and conditions.
What does this mean to our LTD drivers?
Drivers currently working under a PSC contract will be required to transfer to PAYE status and will be paid in line with the above.
Timeline
• 1st Briefing - This is the first of three briefings to our driver network and forms initial communication out
• 2nd Briefing - Will be sent out by Friday the 7th February. This briefing will include more information on what to do and how the legislation changes will affect you – To include FAQ. If you have any questions at all regarding any of the legislation changes, please direct to your sites and we will make sure that we include these in the FAQ document
• 3rd Briefing – Will include site specific information and pay rates you can expect from the sites you work out of. You will receive this by Friday 28th February at the latest.
I hope this information provides some clarity on the impending legislation changes.
Please direct all questions to your site representatives, the more questions we can answer hopefully the better prepared you will all be when the changes take effect.
Please look out for further briefings over the next few weeks.Yours sincerely
Joe Bloggs
Operations Director
Shame you don’t mention the agency.
No doubt they’ll be supplying full PPE, including boots, torches and of course a ‘work’ mobile phone?
the nodding donkey:
And that, my friends, is why we are paid peanuts…
You are paid peanuts for two reasons.
- Complete lack of union power
- Ever since O licensing was introduced the hauliers/3PL have cut the rates to shreds and more so.
I’d love to be a future fly on the wall when it is all automatic trucks. Who they gonna blame then?
FYI Ltd co drivers if they do it properly will earn far less than PAYE drivers but are able to offset more costs, so kindly stop moaning about them. If you had a decent union then we might all be getting a semi decent wage for all the bloody hours we work.
Never worked for agencies so is this good or bad for the industry
Bigtruck3:
Never worked for agencies so is this good or bad for the industry
Speaking to a senior guy today who do a lot of IR35 stuff. Says the Government is in a big mess over this but the treasury are oblivious to it. Wait for the effect on pharmacists…
In essence the client’s costs will rise significantly as they’ll have to treat all workers the same. But could be two years till they carry out a proper review and sense returns to industry as a whole.
Sand Fisher:
peirre:
I’ve just received an email from one of the agencies about IR35. The names of people and the agency name has been removed for obvious reasons
but the context of the email is unchangedBriefing - IR35 and AWR Reforms
Dear Colleagues
As I’m sure you’ll be aware, HMRC proposed changes to workers eligible to operate outside of
IR35 are being reformed as of Monday 6th April 2020.
As of the 6th April large company operators within the UK will need to confirm whether temporary roles completed by contract staff including agency workers are to operate inside or outside of IR35 legislation. Following a long consultation period, gathering due diligence and assessing the varying driver agency roles within our client network it has been determined that our agency drivers fall within IR35 legislation and as such any worker supplied should work on behalf of them under a PAYE employment basis only.
What does this mean to our current Limited Company Drivers?
If you are a limited company driver with us. From the 22nd March 2020, you will only be engaged as a PAYE worker and as such your engagement terms and conditions will reflect this.
We will take the responsibility to ensure correct PAYE and national insurance contributions are collected from your pay at source weekly, and holiday pay will be accrued to enable you time away from work whilst still being paid.
The process to change engagement contracts is simple and your site representatives will be working with you to ensure the change is seamless on the 22nd March.
Changes to PAYE Terms & Conditions
Additional legislation that also takes effect from April 6th relating to the pay and conditions for
agency workers on long term assignments.
As such agency workers will be entitled to certain conditions that reflect those attracted by being employed permanently on the client site you currently work on behalf of Us.
Once we have completed our due diligence a further briefing will be sent out to all drivers detailing sites specific information on pay rates and holidays pay entitlement.
What does this mean to our current PAYE drivers?
If you are currently a PAYE worker, nothing will change in relation to your engagement terms and conditions. If the above pay rates are higher than your current hourly rate, then you will immediately be lifted to the new rate and any applicable increase in holiday entitlement will be reflected in your accrual accounts.
As previously mentioned we support the ethical pay of our workers and as such welcome and embrace the changes proposed to IR35 and will support our clients in the implementation of the new legislation, ensuring agency workers are paid correctly, and on ethical terms and conditions.
What does this mean to our LTD drivers?
Drivers currently working under a PSC contract will be required to transfer to PAYE status and will be paid in line with the above.
Timeline
• 1st Briefing - This is the first of three briefings to our driver network and forms initial communication out
• 2nd Briefing - Will be sent out by Friday the 7th February. This briefing will include more information on what to do and how the legislation changes will affect you – To include FAQ. If you have any questions at all regarding any of the legislation changes, please direct to your sites and we will make sure that we include these in the FAQ document
• 3rd Briefing – Will include site specific information and pay rates you can expect from the sites you work out of. You will receive this by Friday 28th February at the latest.
I hope this information provides some clarity on the impending legislation changes.
Please direct all questions to your site representatives, the more questions we can answer hopefully the better prepared you will all be when the changes take effect.
Please look out for further briefings over the next few weeks.Yours sincerely
Joe Bloggs
Operations DirectorShame you don’t mention the agency.
No doubt they’ll be supplying full PPE, including boots, torches and of course a ‘work’ mobile phone?
Think possibly it may have line and staff in the name of agency, I got same briefing.
Sorry I have read through this a few times now and I can not see about driver hours I thought they would be cutting drive hours on account they have been to long since we joined the eu…I will go back to sleep then 