Gross £26,400
Class 2 NI stamp @ £2.70 a week =£140.40 per year
Tax: Even if you only claim 157 miles a weeks mileage allowance then you wouldn’t pay ANY tax
NET£25,859.60
£5361.84 better off being self employed…and that’s with having 4 weeks off annual leave…
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Is that a fair comparison ■■?
PAYE get mileage allowance, food allowance and almost SIX weeks paid holiday but some get more paid holidays.
That wipes about 4 grand off your £5361 claim. Isn’t that misleading ?
What benefits don’t self employed get? What about State Pension?
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the above calculation allows 4 weeks holiday, so to take an extra 2 would perhaps cost a grand or so and if operated through a ltd company on a directors salary, you get full state pension and as an employee of your own company you get all the allowances of paye.
Dieseldoforme:
PAYE get mileage allowance, food allowance and almost SIX weeks paid holiday but some get more paid holidays.
That wipes about 4 grand off your £5361 claim. Isn’t that misleading ?
What benefits don’t self employed get? What about State Pension?
As far as i recall claiming mileage allowance on PAYE was claiming travelling from a work’s ‘base’ to an alternative place of work - unsure how this would be calculated for a PAYE agency driver?.
A self employed driver’s base is his home thus calculations are always from home to placed of work.
I didn’t bother to include the Food allowances as i didn’t feel the need to rub PAYE’s noses in it
But then as Self employed you can claim against buying a new (TRUCK) sat nav, buying work clothes, medical fees, licence renewal fees, CPC training fees blah blah…
As previously pointed out - the calculations were based on 52 weeks earnings on PAYE and only 48 weeks self employed - and state pension is the same… so i’ve just clawed back the majority of the 4k you tried to pinch off me
It would be more interesting to know how many PAYE guys actually claim mileage/food allowance blah blah
At the end of the day we should all do what works for us individually…and for me that means i can pick and chose who i work for and when i work… and sometimes(not always) guys… that’s ■■■■■■’ priceless…
Gross £26,400
Class 2 NI stamp @ £2.70 a week =£140.40 per year
Tax: Even if you only claim 157 miles a weeks mileage allowance then you wouldn’t pay ANY tax
NET£25,859.60
£5361.84 better off being self employed…and that’s with having 4 weeks off annual leave…
.
.
Is that a fair comparison ■■?
PAYE get mileage allowance, food allowance and almost SIX weeks paid holiday but some get more paid holidays.
That wipes about 4 grand off your £5361 claim. Isn’t that misleading ?
What benefits don’t self employed get? What about State Pension?
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The agencies I have used in the past would not have anything to do with adding vat and they are still offering just the additional £1 an hour to S/E drivers - making it £11 an hour. When they first started this on the arrival of the agency working rules I asked them if that was +vat and they both said no, it was the top line. Total rip-off and, needless to say, I don’t do agency driving any longer…
As far as the State Pension is concerned, if you avoid any NI, which most ‘SE’ guys I know are doing, then unless they have already accrued 30 years NI record (more for younger workers) no basic pension entitlement either.
The benifit is the tax you pay is much less ie you wont pay income tax or ni but you will receive a credit to your ni but you will pay corperation tax at 20% so the tax you pay is much less doesn’t affect child tax credit or other benifts. But will drop your credit rating. You decide who and when you work as your the boss.
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As no one has challenged the fact that the HMRC mileage allowance is
worth only 9 pence per mile in your pocket (and down to
5 pence per mile after 10,000 miles) I take it that the fact is true.
So to the bloke who likes to let people know that he gets 45 pence per mile
for travelling 90 miles every day from Chesterfield to Knottingley and back,
you’re gonna get a shock you Silly Billy.
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I think the allowance is 45p per mile, but this comes off your profit not directly off your tax so you actually save 20% of 45p per mile which is 9p of your tax, so if you can account for having done 10,000 miles (and it does need to be accounted for) you would save £900 off your tax bill.
But to do 10000 miles would cost you £1750 in fuel alone.
Dieseldoforme:
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As no one has challenged the fact that the HMRC mileage allowance is
worth only 9 pence per mile in your pocket (and down to
5 pence per mile after 10,000 miles) I take it that the fact is true.
So to the bloke who likes to let people know that he gets 45 pence per mile
for travelling 90 miles every day from Chesterfield to Knottingley and back,
you’re gonna get a shock you Silly Billy.
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I’m wondering how you arrive at the ‘worth only 9 pence in your pocket’ fact
Torkey:
I’m wondering how you arrive at the ‘worth only 9 pence in your pocket’
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The Tax Man (or HMRC as they are called) will allow you to
“not pay” the tax that you would normally pay on 45 pence.
(You certainly DO NOT benefit by 45 pence per mile)
The basic rate of tax is 20% or one fifth.
One Fifth of 45 pence is 9 pence.
(9 pence is the amount of tax that you would normally pay if you earnt 45 pence)
(HMRC is saying that you can keep the tax on 45 pence for every mile
under 10,000 that you do)
(He’s so kind. His generosity knows no limits)
So 9 pence per mile is the actual true amount that you are better off.
And if you do over 10,000 miles p.a., the allowance then
drops to 25p so you actually benefit by only 5p per mile.
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I hope the driver on here a couple of months ago is reading the last few posts he thought if he travelled hundreds of miles to work the tax man would pay him more than his work.
When I was LTD I paid full tax and NI on the minimum wage then paid the rest as a dividend attracting a lower rate of tax and no NI.
I think this keeps your pension intact.
Most I ever earned was £800 per week and I took home £680, including paying the management company. 5 days in a B&B for that though, would’ve been less with a normal commute.
