LTD Company help

UK PROFESSIONAL DRIVERS FORUMS THE UK PROFESSIONAL DRIVERS FORUM (INTERACTIVE)
1

Hi, I have today signed up as a LTD Company to work with a local Haulier who have offered me full time perminant should I pass my class 1 in 2 weeks time. They will use me as a class 2 after passing an assessment drive today via agencey hence the LTD Co.

Now the fee is £22pw week all in they do all the paperwork etc and the rates are not bad as a class 2 £8ph straight through monday to friday weekends is £10ph. Daily commute is 29.5 miles a day. What other things can I claim, it does state I need recipts to back it all up.

2

Claim everything you can that is needed for your work… and I mean everthing !

Why did you become LTD ? … Years ago when my ex wife bought a market stall we went to the bank and opened a business acount to run it separate from personal accounts, the bank manager advised us against being LTD as this involves a proper company or trading name and a register of the company. It was far easier to just be listed as self employed /freelance.

3

Can’t do it pat has to go through ltd for ir35. But the looks of it it an umbrella scheme and the rules on what you can claim are different to being fully ltd on your own

4

Pat Hasler:
Claim everything you can that is needed for your work… and I mean everthing !

Why did you become LTD ? … Years ago when my ex wife bought a market stall we went to the bank and opened a business acount to run it separate from personal accounts, the bank manager advised us against being LTD as this involves a proper company or trading name and a register of the company. It was far easier to just be listed as self employed /freelance.

But if the market stool business went off and you ended up owing money it means that they can’t take your personal assets like your house etc
Is that right?? That’s what I thought a ltd company was, you can go bankrupt but leaving your personal monies separate.

5

FarnboroughBoy11:
But if the market stool business went off and you ended up owing money it means that they can’t take your personal assets like your house etc
Is that right?? That’s what I thought a ltd company was, you can go bankrupt but leaving your personal monies separate.

Good point, but it did fail because my first wife was so [zb] useless at it, and we never lost any assets. It was still a separate account for the business and they couldn’t claim from our current account.
Anyway this good man will and should do what he feels best for him.

6

You can claim workwear: safety boots, hard hat, hi-viz/weatherproof jacket, gloves, a torch and batteries, mobile phone, and any other equipment that you need to do your job properly and safely.

7

Don’t understand the set up here?Company offering work’full time permanent’,ltd and agency?Rather than going by what people ‘think’ on the web,if you’ve formed a ltd co surely accountancy advice would be wise,if you are working as an employee of your own ltd co,£8 hr to the co doesn’t sound so good?

8

NewLad:
Now the fee is £22pw week all in they do all the paperwork etc and the rates are not bad as a class 2 £8ph straight through monday to friday weekends is £10ph. Daily commute is 29.5 miles a day. What other things can I claim, it does state I need recipts to back it all up.

Thats £1144:00 per year for 52 weeks :open_mouth:
Im also Ltd and pay an accountant £340:00 per year for company accounts plus £50:00 for personal accounts and £13:00 for company registration
I fill in a time-sheet and an invoice every week and keep receipts for work gear…etc and a monthly record of millage for work purposes
Once a year i take all invoices, bank statements, receits and milage details to accountant and he does the rest
no reason why you cant do the same

9

These accountants charge between £20 and £25 on average to “process” your invoice. Why not do something radical as I did and opt for getting paid monthly instead of weekly? Voila, monthly outlay cut from £100 to £25 in one fell swoop.

That’ll be 50 quid thanks. :smiley:

10

:laughing: :laughing: :laughing:
Sorry, but they are taking you as a fool.
LTD company at £8.00 per hour?
it shouldn’t be allowed. oh wait a minute, it happends to be illegal. :laughing: :laughing: :laughing:
Why?
because under UK law it is illegal to knowingly run a business at a loss.
You can’t make a profit at £8.00 per hour.

11

limeyphil:
:lol: :laughing: :laughing:
Sorry, but they are taking you as a fool.
LTD company at £8.00 per hour?
it shouldn’t be allowed. oh wait a minute, it happends to be illegal. :laughing: :laughing: :laughing:
Why?
because under UK law it is illegal to knowingly run a business at a loss.
You can’t make a profit at £8.00 per hour.

I’m not going to defend £8 an hour but I’m interested as to how you think a profit can’t be made at £8 an hour Phil?

If it costs £8.01 an hour to make that £8 then yes I’d agree, if however it costs £7.99 to make that amount then all logic tells us that that is a profit (albeit a ridiculously small one). So I’d say that it all depends on a persons outlay as to whether that represents profit or not.

Btw, I was unaware of it being illegal to knowingly run at a loss, but I’ll take your word on that.

Hope some of the major banks do too! :wink:

12

You cannot be self employed if you only have one customer. That is what IR35 is about and why the OP needs to be a Ltd Co.

Without knowing more details of his contract it is hard to give better advice. He is ‘paid’ £8 ph, but does he have to provide anything other than his labour?

13

Seek professional advice on this one mate, I got stung doing this… remember whoever is suggesting you do this is doing it primarily for their benefit and not yours. Will you have any comebacks if it goes bad ways, holiday money, sick pay…Make an informed decision.

14

i think it suits them more than it will benefit you, get legall advice.doesn’t sound right to me at all.

15

If a firm pays you gross, as if you were self employed, and you already have a contract with a different firm, then what is your tax status with the 2nd runner paying you gross?

I don’t mind it being considered “self employed” but I’ve signed no paperwork to that effect to my knowledge. Is being “Self Employed” a status rather than an application?

I’m thinking of the possibility here that those expenses I couldn’t get offset against my contract income might be offsettable against my second I’m hoping “self employed income”? :bulb:

16

the maoster:

limeyphil:
:lol: :laughing: :laughing:
Sorry, but they are taking you as a fool.
LTD company at £8.00 per hour?
it shouldn’t be allowed. oh wait a minute, it happends to be illegal. :laughing: :laughing: :laughing:
Why?
because under UK law it is illegal to knowingly run a business at a loss.
You can’t make a profit at £8.00 per hour.

I’m not going to defend £8 an hour but I’m interested as to how you think a profit can’t be made at £8 an hour Phil?

If it costs £8.01 an hour to make that £8 then yes I’d agree, if however it costs £7.99 to make that amount then all logic tells us that that is a profit (albeit a ridiculously small one). So I’d say that it all depends on a persons outlay as to whether that represents profit or not.

Btw, I was unaware of it being illegal to knowingly run at a loss, but I’ll take your word on that.

Hope some of the major banks do too! :wink:

deduct your basic expenses like internet access, phone, marketing, then, wages, employer ni, income tax, corporation tax, etc.
then tell me there’s a profit to be made.

17

I’ll try and clear some stuff up I’m only going to be on the agency for a month so it seemed the best way. The class 2 wage paye is minimum wage go ltd and its £8 monday to friday and £10 weekends also my daily commute is 30 miles so I can claim my milage. I’m just starting out full time so I need all the kit which I can claim for. When I pass my class one the firm Im with have offered me full time on their books if I want it. Doing it this way even with the £22 a week fee i’ll be 18% better off a week in my bank.

18

NewLad:
I’ll try and clear some stuff up I’m only going to be on the agency for a month so it seemed the best way. The class 2 wage paye is minimum wage go ltd and its £8 monday to friday and £10 weekends also my daily commute is 30 miles so I can claim my milage. I’m just starting out full time so I need all the kit which I can claim for. When I pass my class one the firm Im with have offered me full time on their books if I want it. Doing it this way even with the £22 a week fee i’ll be 18% better off a week in my bank.

I was always under the impression at you could not be self employed as a director of a limited company??
you have to be on paye, so how are you going to be 18% better off on £8 per hour, as someone else said after you take the tax out and ni and company ni contributions I can’t see it unless I am missing something :confused: :confused: :confused: :open_mouth: :open_mouth: :open_mouth: :open_mouth:

19

NewLad:
I’ll try and clear some stuff up I’m only going to be on the agency for a month so it seemed the best way. The class 2 wage paye is minimum wage go ltd and its £8 monday to friday and £10 weekends also my daily commute is 30 miles so I can claim my milage. I’m just starting out full time so I need all the kit which I can claim for. When I pass my class one the firm Im with have offered me full time on their books if I want it. Doing it this way even with the £22 a week fee i’ll be 18% better off a week in my bank.

I can understand most things but I have not got a clue what this is about. He is agency for a month and they are charging him £22 a week then if he passes his test he may get full time job so why the agency and not give him job now, this does not sound right.

20

the maoster:
I’m not going to defend £8 an hour but I’m interested as to how you think a profit can’t be made at £8 an hour Phil?

National Minimum Wage is £6.31 an hour.
Holiday pay is 10.7%
Employers NI is 13.8% on all pay over £148 a week.

So assume you do 60hrs a week paying yourself national minimum wage, no nights out.

You bill from your Ltd Company to your “employer” : £480

It costs you:
£378.60 in wages at NMW
£31.82 Employers NI
An additional £40.70 in holiday pay which is put aside.

So you now have £410.42 in tax deductible costs which, if you actually include holiday pay is £452.12.

You also claim £3 a week for using your home as an office. You pay someone to do your PAYE(RTI) and books which is £15 a week so now you have £468.12 in tax deductible costs.

So on paper you’re now at a profit of £11.88 or £617.76 a year

But you then would no doubt be claiming mileage as an expense to reduce your tax. So say you travel 100 miles a week to work. That is another £45 a week or £2088 a year in mileage claims at HMRC rates assuming you have the legally required 5.6 weeks holiday.

So now you’re operating at a loss of £1470.24

But you also have a company mobile phone. So that’s another £360 a year so you’re now at a loss of £1830.24

But then your “employer” expects you to cover your holidays at your expense. So that costs you another £2640 if you can find a mate to work for £8/hr or over £4k if you have to get an agency driver in.

So you’re now at a loss of between £4470 to over £6000.

Please note there is no public liability insurance factored in and the costs of setting up the Ltd Company have also not been factored in.

Doing it this way even with the £22 a week fee i’ll be 18% better off a week in my bank.

Doesn’t matter a toss what you put in your bank. What matters is the figure which is reported in your annual accounts and lodged with Companies House. If that figure shows a loss every year you’re going to be in trouble.

Self employed for £8 is mug money. To give you an idea of how much of a fool you’re being taken for, as a self employed driver I was charging and getting £12 an hour basic in East Yorkshire EIGHT YEARS AGO.

IF YOU ARE WORKING SELF EMPLOYED FOR £8/HR PAYING £22 A WEEK ADMIN CHARGE YOU ARE EFFECTIVELY WORKING FOR 18p/hr LESS THAN NATIONAL MINIMUM WAGE

Would you take a job paying £6.13/hr because that is exactly what you’re doing.