Looking for some advice, had a search through the forum but can’t really find anything - Anyway, I’m in the early stages of working towards my LGV license, (got theory this week) and my plan hopefully is to do some part time driving work eventually once I get my license - I work offshore and am at home for a month at a time so plan would be to maybe pick up a couple of weeks work during this time , get some experience and always a fall back if things go pear shaped offshore - I was thinking setting up a Ltd company would be the best way to go about this, I’m on Paye in my main job already so hopefully minimize tax etc on a second job, does anyone have any advice on this scenario ?
As I said can’t really find any info so any advice would be appreciated.
Good luck with the training. Once you’ve passed I would suggest going direct to the local hauliers and explain your situation, you should be able to get a better rate by cutting out any agency. I have a full time job and I set up as a Ltd Co to do driving and earn a bit of extra cash. It works well for me as opposed to paying 40% tax on a second income.
If you go down the agency route, don’t let them set up your company for you and run your accounts through their scheme. Get your own accountant and set up the company yourself online, it’s easy to do and costs about £12 rather than the £100 an agency will try and charge. Accountants vary in price so try and go on a local reccomendation from somebody you trust (preferably one that has done some accounting in haulage in the past).
Don’t be tempted to go VAT registered as it massively complicates the issue if you’re only doing part time work in somebody elses truck and not buying your own fuel etc… I know guys that are VAT registered and are making a bit of extra cash from it by invoicing +VAT but it just doesn’t ring true to me and I can’t help but think they’ll pay for it in the long run (I’m no expert though so look into it).
This kind of Ltd Co employment model is supposedly under the microscope by HMRC but there are so many people doing it, I wouldn’t get too concerned. Just try not to work for the same firm all the time so you can show multiple clients and satisfy the IR35 rule.
Cheers for the advice - Thats exactly what i was thinking of, setting up ltd company so good to hear others are doing it - haven’t thought about the vat side of it yet, don’t want to over complicate it just yet
I’m hoping i can put my wife through the books and pay her from anything earned from driving work minimising any 40% tax and she can deal with invoicing etc
Passed the theory test today, so now just to get booked in for practical & cpc etc
I’'ll go start looking into starting a ltd company
Quite possibly, no idea to be honest - just researching just now etc, I assumed that the clients insurance would cover me for driving their vehicles as they would presumably be already insured ?
Im just looking into it just now, I think it makes more sense for me to go freelance / ltd as I am hoping to go between companies if I’m lucky enough to pick up some work, but from what I hear they are frequently looking for ad-hoc LGV drivers up this area and since my main job is already PAYE so at the moment I’m not overly concerned about losing benefits of paye brings with driving, holiday pay etc, I’m more looking at it to be tax efficient as I’ll only be looking at gaining some experience initially.
I see, never thought of that aspect so something else to look into, I’m sitting reading through the forums for info so i’ll maybe come across something relating to insurance requirements.
I don’t really see another option just now, don’t want to go PAYE on 2nd job as its instantly 40% tax and not sure if companies would be keen to put you on the books for ad-hoc, realistically I could likely only do a couple of weeks every 2 months !!
Kev56:
I see, never thought of that aspect so something else to look into, I’m sitting reading through the forums for info so i’ll maybe come across something relating to insurance requirements.
I don’t really see another option just now, don’t want to go PAYE on 2nd job as its instantly 40% tax and not sure if companies would be keen to put you on the books for ad-hoc, realistically I could likely only do a couple of weeks every 2 months !!
I can’t advise you mate, I know next to nothing. There are old threads you can search on the main forum that discuss the topic.
All I care to remember from them that Public Liability insurance in on your list!
Kev56:
I see, never thought of that aspect so something else to look into, I’m sitting reading through the forums for info so i’ll maybe come across something relating to insurance requirements.
I don’t really see another option just now, don’t want to go PAYE on 2nd job as its instantly 40% tax and not sure if companies would be keen to put you on the books for ad-hoc, realistically I could likely only do a couple of weeks every 2 months !!
Dont mean to jump on you thread as im confused as hell with the whole ltd working for yourself thing.
Are you sure its 40% tax on a second job with PAYE though? I was under the impression it changed recently and you only pay 40% tax if you earn over £32,000 a year in total with either one or more jobs. So the receptionist/accountant at work told me and also on the governments website.
I used to work 3 evenings and weekends at a super market after my 47 hours in my full time job,times were hard then but this was years ago and looking back i was totally fleeced from working hard in a second job. Its all changed now apparently.
I have liability insurance to cover me exactly as E.B says, incase something happens on site that is your fault.
No need for vehicle insurance as any company you approach would use you on there policy (standard practise) but just confirm when you agree terms. If vehicle insurance was your responsibility then it would negate the benefits of being freelance as the costs would escalate.
Where abouts are you from Kev? If you’re anywhere near the Humber area, you’ll have no issues getting work either as a Ltd Co.
Good luck with your licenses mate, hope it all runs smoothly!!
Hi, yeah I’m afraid my main job bumps me up over the threshold so definitely 40% tax, will definitely look into liability insurance when the time comes then, Its probably going to be next Jan / Feb before I get the Cat C practical done now, then look into the C+E after it hopefully.
Look forward to doing it anyway, I’ve always wanted to do my Lgv licence, I’m up N.E Scotland so hoping to pick up some work / experience
Kev56:
Hi, yeah I’m afraid my main job bumps me up over the threshold so definitely 40% tax, will definitely look into liability insurance when the time comes then, Its probably going to be next Jan / Feb before I get the Cat C practical done now, then look into the C+E after it hopefully.
Look forward to doing it anyway, I’ve always wanted to do my Lgv licence, I’m up N.E Scotland so hoping to pick up some work / experience
Okies mate,sorry for interfering! Good luck for the training and test in the new year!
Don’t worry mate, your not interfering - Glad of any advice / help
Im new to this game so welcome any help / assistance or information whether it proves useful and relevant or not - So feel free to interfere all you want
Kev56:
Don’t worry mate, your not interfering - Glad of any advice / help
Im new to this game so welcome any help / assistance or information whether it proves useful and relevant or not - So feel free to interfere all you want
Go on the main forum and talk politics, Thatcher or socialism and a member named Carryfast will be on you faster than a tacho infringement!
As for tax, there are a few on that forum that seem to know the score…
Hi mate meant to reply sooner but been busy with work, I’m in a similar position to yourself have a job offshore currently and done my first stint of agency work last time home.
So things I learned are that, the Will continually try to railroad you into being paid under their umbrella scheme.
If you reefuse they will expect you to take a monumental hit on your hourly rate in order to cover their NI contributions.
In the end I have gone limited myself, however being my second job have forgone the vat registered route as will bite me in the arse eventually.
Kev56:
I see,
I don’t really see another option just now, don’t want to go PAYE on 2nd job as its instantly 40% tax and not sure if companies would be keen to put you on the books for ad-hoc, realistically I could likely only do a couple of weeks every 2 months !!
Don’t think anyone you work for as a second job should be deducting 40% tax because without your P45/P60 they will not know your years earnings and tax paid.
In the past when I have done similar work the company deducted 20% BR “basic rate” and its up to HMRC to claim the other 20% from you, some years you might get lucky - others not so! - which is what happened to me in the past and why I am interested to know more about the costs involved in setting up and running a LTD co, also how much you need to be making each year to make it worthwhile?
Some of the lads I work with in my full time job are LTD co or self employed and the rest are PAYE like me, they all reckon you cannot be on PAYE and run a LTD co at the same time, although ako444 is doing it so it must be possible. As far as I can see you need to be careful and avoid being caught by IR35, is working for different companies enough for this?
Thanks for all the replies and advice so far, I’m not sure where I stand with the tax completely, I just know I’m over the threshold already with the 40% - From what I have read so far I think I can be on PAYE on my main job & run a ltd company as a 2nd job, I just need to fill in a self assessment if I am a company director. My plan is to do some freelance driving work during time onshore to gain some experience & possibly if I come back onshore I can drive full time. Anyway as part time I am not trying to evade tax, only be tax efficient, hopefully I can do freelance driving as a ltd company & with any income I can pay my wife a wage for doing the administration side of things, invoicing, receipts etc & I’m not intending drawing any wages for myself out of the ltd company, but anything left over can be paid out in dividends which ultimately I still end up paying at 40%. But on the plus side I get a bit of experience driving
I still have to get my LGV license, which hopefully will be the start of the year & then secure some work, I have been told agency is the best way forward but I will still go to some haulage companies in the area and see what happens, all good learning and experience
Cheers for the advice and keep it coming - must be guys in similar situations who have some experience with this
I’m on a FPSO - Central North Sea, yeah don’t think much of the 3 weeks On, too long for me I’m afraid - Going to stick it out for a while but hoping to get my LGV license as a back up, main problem is nothing seems to compare with offshore wages, can’t have it both ways, suppose thats why you get the money, working away from home half your life and working on a potential bomb
