Ltd Company: Refresh the advice

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

I know this has been discussed over and over on TN but the most recent topic I can find on search refers to a 17.5% rate of VAT so perhaps we could update the advice with the following case study:

I am looking into setting up a limited company for the numerous benefits it offers a truck driver. I am:

C+E Licenced.
CPC Current
Working on Agency contracts at the moment.
Being offered more money to go down the Ltd Co. route.
Mondy - Friday day tramper.
Terrified of commitment. (I have worked for four different companies or agencies in 2014.)
Not interested in night working.

I currently earn below the average on PAYE, driving a vehicle based 100 miles from my bedroom.
I live in the family home and pay rent to the parents.
I also operate a small sideline in motorsport journalism and photography.

My plan:

Form “NPS Trucks and Tracks Ltd” (example name, I won’t be registering this company name)
Register for flat rate VAT.
Continue to work for agencies on a self employed, increased hourly rate. Most recent example has been £1.50 above the PAYE rate but I will be negotiating that upwards. (£9.50 PAYE - £11 self employed).
I rarely take holiday, (5 days in 2014) so the loss of holiday pay wont affect me that much.
I eventually envisage putting my own truck on the road, but this is a long term goal, not a short term, pre-funded, certainty.

Separate issue:
Add in my photo-journalism as a second division of the business

My questions:

What the flock do I do■■?
What can I claim back against my tax burden? (Transport costs, food and clothing for while I am at work, telecommunications, [both my mobile phone (which i would have anyway) and my MiFi mobile internet (which I would not have if I wasn’t driving a truck, I would have no need for it)])
Is it better to be paid into my personal account or does business banking offer enough benefits to off-set the costs?
Do I need additional insurances while driving other companies trucks? I already have £5m Public Liability Insurance for the photography and it wont be much more expensive to add road transport as a second area of operation.
Commuting costs: Is it better to estimate a percentage of my car for commuting and claim back the VAT or to pay a milage rate?
Do the agencies produce self billing invoices or do I have to invoice them weekly?
What sort of accountancy fees are reasonable?

On the side issue: The Image Team is never going to be a massive profit making venture, (thats the photo-journalism) I can always spend more money on camera gear than the Motorsport community spend on tyres a year so anything that comes in via The Image Team will go straight back out again. Can I claim the costs of ■■■, (I know, unfortunate acronym) and it’s inevitable losses against the income of NPS Trucks and Tracks to reduce my tax liability?

I have previously been advised to keep these two aspects of my business separate but the benefits of offsetting transport, accomodation and equipment costs for the racing against the profits of the truckin’ would more than make up in my opinion for the increased risk. Especially as I don’t anticipate The Image Team actually taking on any liabilities, (credit, premises etc.) All the equipment is owned by myself, not the company. I operate from home so I have no premises expenses or Liabilities, transport is provided by my privately owned vehicle so I would also be paying myself my normal milage rate for getting to the track.

My my very rough maths I could conceivably go from £500 P/w take home to £850 just staying where I am and going onto self employed working. Of that £850 I would immediately bank £250 to cover tax and NI at the end of the year but that would still leave me £100 per week better off. Of course off-setting expenses against my tax would mean that I wouldn’t need £12k at the end of the year for the tax bill either so I can buy the bigger items like cameras and computers and stuff with the windfall at the end of each year.

So, what do we think people. Is it all pie in the sky or do I have a reasonable plan for world ■■■■■■■■■■? All advice and opinions welcome!

2

my advice if you are serious go and speak to a couple of accountants.

there is a whole lot more a decent accountant can save you and claim for than most of us will realise (pm me and i will send you a number if needed).

3

nsmith1180:
stuff

Go speak to an accountant. They will be best placed to correctly advise, not random armchair experts on internet forums.

4

Left hand down!:

nsmith1180:
stuff

Go speak to an accountant. They will be best placed to correctly advise, not random armchair experts on internet forums.

Above made me chuckle.

I’m same as you pal, driver only, limited company,not vat registered ( and will that benefit you) own aspirations of own truck. You could, Keep your ideas as one as no doubt the driving gives more revenue than the image team ( jus guessing) but the image side has relatively more costs. As others have said, get the latest correct advice and you could, max it out, ie the Xmas present for the girlfriend is a staff gift or client gift. Your parents Xmas shop that will be a whopper full of alcohol, use as the ‘staff’ Xmas party, pay ur mums/mates fuel and put that through and collect the cash, even rent ur own vehicle to nps ltd. jus get the balance right for you. If you want credit after a year or two , a non profit making business won’t look good but if you’ve a pocket full of money u may not need the loan if your savvy. There’s an absolute rack of expenses to be claimed for so be sensible. Won’t look amazing on an application for o licence should you acquire an inquiry or conviction for being daft.
Keep your books neat and if u ask the accountant how he’d like them presented. I also help myself by buying in bulk and producing less receipts, less input etc, don’t jus put a tenner of fuel in when u can put £80 in and only have 1 receipt a fortnight. Same with ppe etc etc, and don’t forget if you get tempted to go really insane and only pay yourself £100 a week you’ll get tax credits too.

5

As I say, especially as my car only has a 35l fuel tank, wouldn’t I be better off paying the approved mileage rate rather than claiming tax relief on the value of the vehicle, tax and servicing etc?

6

35ltr? I pittle more than that before it’s even dawn, what is it? A old mini or a track car?

7

Popcorn anyone??

8

nsmith1180:
As I say, especially as my car only has a 35l fuel tank, wouldn’t I be better off paying the approved mileage rate rather than claiming tax relief on the value of the vehicle, tax and servicing etc?

Even if you’re not its a whole lot easier from an accounting point of view unless you buy a car purely for business use in addition to your main one. I claim mileage and have never been challenged. My parents claim a percentage of running costs (you can’t claim all of it if you use it for personal use). Almost every year the HMRC challenge the percentage use claimed.

9

When it comes to your holiday pay the flat rate Vat will make up for that. whatever the difference you have between what Vat you collect
& what Vat you pay put it aside and use it as holiday pay when you do have a holiday.

10

sent you a pm sorry it took so long!

11

Mattwoodtransport:

Left hand down!:

nsmith1180:
stuff

Go speak to an accountant. They will be best placed to correctly advise, not random armchair experts on internet forums.

Above made me chuckle.

It’s true. Give it another few hours and the usual suspects will be along with the "you can’t just work for one company, you need to work for 10 different companies otherwise HMRC will cart you off to the IR35 prison and you’ll be locked up for 35 years and given a £2bn fine for pretending to be self-employed. It happened to someone I know… ". :unamused:

Go speak to an accountant. They will be best placed to correctly advise, not random armchair experts on internet forums.[/b]

12

should anyone be serious about going S/E please pm me (i have a freind/ex boss) who is an accountant and is expanding into this sort of thing. he does know his stuff as saved me ££££ when i worked for him in tax (like any good accountant should be able too).

i dont have any rates etc but speak to him and i am sure he will help.

13

and that helps a chap set up as a ltd company or sole trader how?

iso for a 1 man band?

14

war1974:
and that helps a chap set up as a ltd company or sole trader how?

iso for a 1 man band?

It’s spam, ignore. They’ve done exactly the same on multiple other threads within last 10 mins.

15

time for a block before tnuk becomes another piratebay or facebook with adverts everywhere!

some thick people out there though lets bombard a site with irrelevant crap and hope the users decide to use us :open_mouth:

16

CAW:
I would like to take a moment to introduce our company

Can’t be much of a company if you have to spam forums to get business :unamused:

Forum Rules

17

Mattwoodtransport:
35ltr? I pittle more than that before it’s even dawn, what is it? A old mini or a track car?

Vauxhall Adam 1.2 Jam.

18

I have Volvo S40 on 05 plate and for a big car its only got a 40ltr tank, pathetic really!

Maybe all the space inside only left room for a tidgey tank!

Must be loads of fuel stations in Sweden!

19

dcgpx:
I have Volvo S40 on 05 plate and for a big car its only got a 40ltr tank, pathetic really!

Maybe all the space inside only left room for a tidgey tank!

Must be loads of fuel stations in Sweden!

Really? Even my C30 manages a 62l one!

20

Really! its annoying on long journeys.

I remember when I first got it filling it up thought something wrong when pump cut off at 38ltrs!

Nice to say though in convo’s ‘Oh my car only costs £60 to fill up!!!’ when everyones complaining at £80-90

Any way off topic yet again