Does anyone out there drive for another haulier on a self employed basis? I want to put a driver into my unit on a self employed basis but I understand he cannot drive soley for one company and be self employed… is this the case and is there a way round it? Any ideas would be appreciated, thanks
Hi sampomat i drive for a company on a self employed basis if you need any info you cam pm me.
Regards
Andy
I’m a self employed driver and it’s true that you cannot legally be a self employed driver with only one customer.I had an income tax investigation last year and have written confirmation that I’m legally self employed but all my customers have to sign my T’s & C’s I have numerous customers,I pay for all my own training,tax, NI,plus a few other things I forget that confirmed I that the computor says yes
Tell him to become a limited company, can only have 1 customer then.
Limited comany…How does that work then? Why should being limited make a difference? 
A Limited company is a legal entity in its own right. I’m not 100% sure of the implications in your case but I’d assume that the driver would not therefore be ‘self employed’ as a sole trader (which as stated requires you to have more than one customer), but rather the driver would be a director or employee of his own Ltd company. The ‘company’ would invoice you for the driver’s time and the ‘company’ would then pay the driver and the ‘more than one customer’ requirement would be irrelevant.
And it’s not that difficult or expensive to set up a Ltd company - there are many routes to it including companies/lawyers that specialise in it. Usually the quickest route is to buy an off the shelf Ltd company that already exists in name but is not operational, and then changing the trading name if the original is not suitable.
Cheers…M
Ive changed to "LTD" status over the last few months, I didnt want to, but, HMRC put massive pressure on a couple of my customers.
Its quite easy, but, it does cost, and, its not as easy to “please yourself” as it is with being S/E.
The one shock I did get though, after thinking that I could work for ONE customer without HMRC pressure, is not true, my accountant told me that if I work for one company only, I could be liable for extra N.I + P.A.Y.E, as I would be classed as a “normal” employee.
At the moment, I am paying myself a very low wage monthly, and, then taking a “dividend” every 3 months, the tax ect will be lower this way, but, the tax man is aware of this “trick”, and will come down heavy on anyone who looks to playing by different rules.
I have been warned 
i am in the process of settin up self employed
have been advised not to go ldt by a transport accountant
if you work for only 1 company it will cause more of a problem for the company not the individual
if you would like more info send a pm
animal:
i am in the process of settin up self employedhave been advised not to go ldt by a transport accountant
if you work for only 1 company it will cause more of a problem for the company not the individual
if you would like more info send a pm
You are spot on Animal, I woulnt have changed if I had my way, but, as you say, its the company and not the individual that gets stung [if you fail to pay your tax + N.I.C.], thats why most firms will not touch you with a barge pole if your S/E.
Its their liability, so they will not take a chance.
If HMRC smells a rat, and they have very powerful nostrils, they come in all guns blazing, ALL the agencies in this area have had a visit, and ALL were told to cease using S/E drivers with imeadiate effect, I have 30 + years of being S/E, with ALL my contributions paid over this period, HMRC would still not listen, its all to with employment law, it started with the buliding industry, and it will not stop until they have eradicated the S/E.
This government hates it if you are your own gaffer, and the little “tickles” that go with it.
I am surprised that your “transport accountant” advised you to go the S/E route, accountants normally want you “LTD” so the have a customer for life, you are their cash cow.
TBF, I`ve kept my S/E status, as I have a few rental properties, and do a bit of trading in “stuff”, so, the my expenses still go through the books 100%, all legal of course.
So, I`m S/E + a director, double whammy in the nutts Mr Brown 
you need to set up a ltd company this what i have done and work for one haulier the haqulier pays my ltd company and i take a wage as imalso director of said company
alix776:
you need to set up a ltd company this what i have done and work for one haulier the haqulier pays my ltd company and i take a wage as imalso director of said company
Becareful alix776, my understanding [as stated earlier], is that HMRC may / will / could claim that you are actually an “employed” person, and NOT a “business”, because you supply one company, and, the advice i have been given, is that I will need at least two customers, who I invoice on a regular basis.
My accountants have proved me wrong more than once, and, saved me dosh, after i had listened to others with hearsay.
I work with two lads who are in the same boat on a particular job, they “were” convinced they could work solely for this blue chip outfit 100%, they have also been told to widen their customer base by their accountants.
wel the accountant should know there stuff as the accountant i deal with is ex hmrc
Ah yes - in my previous post I’d forgotten about IR35.
This legislation was introduced to counter tax avoidance. Before IR35, service providers could set up a limited company, which would invoice the customer. For people working for just a single customer, this gave rise to some unfairness, since they could be doing pretty much the same job as a person employed by the customer and on pretty much the same ‘full time’ basis, but would end up paying less tax. That is no longer allowed. IR35 has been much criticised, not least on the basis that while the limited company owner may gain some tax advantages, against that they do not have the protections and other benefits (such as holiday pay) of an employee.
If a self-employed sole trader works for a single customer, the customer may be required to deduct tax and NI at source, which is presumably the hassle and extra work that sampopmat would like to avoid.
If a self-employed driver sets up a limited company but only works for one customer, then the invoiced amount paid to the limited company will be taxed as a salary. That would negate any tax benefit to the self-employed driver, but if I’m correct in thinking that the tax would be applied to the limited company/self-employed driver, it would at least mean that the customer - ie sampopmat - would not have to worry about PAYE/NI for the driver.
There have been successful appeals against IR35, so a decision to set up a limited company but work for only one customer will have to be investigated and decided on its merits, with the help of IR35 experts.
Cheers…M
The dreaded IR35 
Whatever the name, the word on the street, is becareful, more than one customer will keep the wolf from the door 
Phew! Plenty to think about there, thanks for all your input folks - very helpful, although as usual there is no simple solution!! 
There is a simple solution. Use what is known in the agency world as an umbrella company. Look up Ducas Ltd, in Tunbridge Wells. It’s covered by a rule called IR 35, at least i think it is.
Ex Haulier:
There is a simple solution. Use what is known in the agency world as an umbrella company. Look up Ducas Ltd, in Tunbridge Wells. It’s covered by a rule called IR 35, at least i think it is.
They are, but, its easier on your pocket to do it yourself, they make money out of you by doing the “easy” bits, you will still need an accountant to sort out the HMRC iirc / imo.
So, if you go direct to an accountant for advice / help, they will point you in the right direction.
Simples…
you dont need an accountant you can do it your self
HMRC courses 0845 603 6691
New self employed 08459 154 515
self employed contact centre 08459 154 655
IR35 08453 033 535
hmrc.gov.ik/ir35
busunesslink.gov.uk/advicedays
0845 600 9 006
hope this helps
animal:
you dont need an accountant you can do it your selfHMRC courses 0845 603 6691
New self employed 08459 154 515
self employed contact centre 08459 154 655
IR35 08453 033 535
hmrc.gov.ik/ir35busunesslink.gov.uk/advicedays
0845 600 9 006hope this helps
True, but, if your a busy boy / girl, with a life outside the cab, and, you have had a comprehensive education, [like me] a lot of what the government deems as helpful, turns your brain to slush.
Plus, any advice is better than none IMHO