Ok, so i’m a newbie SE class one driver and have been informed by one of the companies i work for in the NE to come on board on a fulltime basis as a sub contract. My question is to all the old hats out there is what would be a reasonable and fair amount to quote them on a PH basis.
Depends on work involved but £12 for 1st 8 and £18 after is what a lot of SE drivers I know are charging…
But it is the North East which has people happy to work for £8 per hour.
Either way, as Self Employed, you are entitled to negotiate the rates, if you don’t like them, walk away. An agency will charge more. I think it’s called a “Driver’s Market”
RCT Legion:
Ok, so i’m a newbie SE class one driver and have been informed by one of the companies i work for in the NE to come on board on a fulltime basis as a sub contract.
First of all that’s not legal. That would be viewed as an employed position by HMRC, not self employed. It wouldn’t even meet all but one or two of the basic tests:
- they’re in business for themselves, are responsible for the success or failure of their business and can make a loss or a profit
- they can decide what work they do and when, where or how to do it
- they can hire someone else to do the work
- they’re responsible for fixing any unsatisfactory work in their own time
- their employer agrees a fixed price for their work - it doesn’t depend on how long the job takes to finish
- they use their own money to buy business assets, cover running costs, and provide tools and equipment for their work
- they can work for more than one client
Very good points conor, will look a little further into this. Thankyou
set yourself up as a limited company then, it is easy to do
Conor:
RCT Legion:
Ok, so i’m a newbie SE class one driver and have been informed by one of the companies i work for in the NE to come on board on a fulltime basis as a sub contract.First of all that’s not legal. That would be viewed as an employed position by HMRC, not self employed. It wouldn’t even meet all but one or two of the basic tests:
- they’re in business for themselves, are responsible for the success or failure of their business and can make a loss or a profit
- they can decide what work they do and when, where or how to do it
- they can hire someone else to do the work
- they’re responsible for fixing any unsatisfactory work in their own time
- their employer agrees a fixed price for their work - it doesn’t depend on how long the job takes to finish
- they use their own money to buy business assets, cover running costs, and provide tools and equipment for their work
- they can work for more than one client
Very true but goes on much more than you realise. Depending on what sort of hrs your going to be doing 150 per day and sort nights put yourself out of the 150. As if you invoice for them they count as part of the taxable income
malcob:
set yourself up as a limited company then, it is easy to do
Doesn’t change anything. Still not legal. That test applies whether you’re sole trader or Ltd. It is run exactly the same as a fulltime PAYE job and should be done as such. Somehow I doubt that his boss is not going to let him send in his mate to drive his truck and will expect him to be at work when he wants him to be.
It’s not that it’s not legal, it’s that it’d fall under IR35 and any income from the business would be taxable as deemed employment income. You can deduct 5% for expenses for running the business (more than enough for simply providing your own personal services), and pay tax on the rest. If you operate your own PAYE scheme, rather that paying yourself a minimal wage + dividends, you have nothing to worry about. Get on Flat Rate VAT, and register for the employers allowance which will save you from having to pay employers NI on the first £24400 (approx) of your salary (until April anyway).
Operating as SE while falling within IR35 isn’t as much of a headache as you might think.
HTH.
Flat rate vat is one of the first flags for hmrc. How you pay your self won’t make you fall outside it either you need to provide your self a few customers or a second income stream