For the agency limpers! 
How are you employed/paid?
I used to be Umbrella when you could claim expenses, and never bothered setting up a limited company as my long term plan was/is directly employed… So since the change last April I’ve limped over to PAYE! 
To clarify the confusion over this I have checked the law on this with a very reputable accountant who represents some large companies.
Apparently the law only effects those drivers who are self employed and only working for one company be it agency or one haulier.
If you are self employed and hire yourself out to various hauliers or owner drivers then you are fine to hire yourself out as a driver.
This has been issued to him and other accountants by HMRC.
That’s from the horses mouth and not opinion only on here!
Why on earth would anyone form a LTD company for agency work? I know it happens but it’s stupid. Tax laws are much more beneficial for sole traders up until they start employing people. IE a sole trader can claim tax back against losses from ANY year not just the last working year. Unless you’re subbing for the agency and employing your own drivers to do the work then I can’t see how it benefits anybody except the accountant that’s in cahoots with the agency. A LTD company means a bit more work and pretty much delegates much more legal responsibility. Ironically most of these agencies seem to be owned by chartered accountants.
I’m not an accountant myself but my family’s run a decorating business employing upto 12 people at times as essentially a sole trader. The only time it was suggested to move to LTD structure was when my dad found out he’d got illegitimate children as a way to stop claims against him… he paid for them as he should however I’m proud to say.
jef:
Why on earth would anyone form a LTD company for agency work? I know it happens but it’s stupid.I’m not an accountant myself but my family’s run a decorating business employing upto 12 people at times as essentially a sole trader. The only time it was suggested to move to LTD structure was when my dad found out he’d got illegitimate children as a way to stop claims against him… he paid for them as he should however I’m proud to say.
Limited means the company is a separate legal entity. The way your family’s decorating business is run if they did a large job for a client who didn’t pay and they went bust owing suppliers thousands then they’d personally be liable for the debts and could lose everything. Ltd protects you from that.
jef:
Why on earth would anyone form a LTD company for agency work? I know it happens but it’s stupid. Tax laws are much more beneficial for sole traders up until they start employing people. IE a sole trader can claim tax back against losses from ANY year not just the last working year. Unless you’re subbing for the agency and employing your own drivers to do the work then I can’t see how it benefits anybody except the accountant that’s in cahoots with the agency. A LTD company means a bit more work and pretty much delegates much more legal responsibility. Ironically most of these agencies seem to be owned by chartered accountants.I’m not an accountant myself but my family’s run a decorating business employing upto 12 people at times as essentially a sole trader. The only time it was suggested to move to LTD structure was when my dad found out he’d got illegitimate children as a way to stop claims against him… he paid for them as he should however I’m proud to say.
I am a Ltd Company driver and a Motorsport Photographer. I made the move when I started getting photography commissions because I then needed insurances, new equipment et al. It has put me in a position to start out on my own with a wagon though, I doubt I would be considering it if I didn’t already have the company side in place. I’m writing the business plan this weekend and am certain I would have much more difficulty accessing the information and quotations I require if I was a bloke looking to set up a company rather than a company already trading and looking to expand. Saving between 10 and 20 grand for a truck plus the 7.5k you need to keep available to run it would be almost impossible on PAYE.
Last year I turned over 35k in 9 months. Paid approximately 5k in VAT but off-set all corporation tax liabilities against equipment purchases, the company balance is growing to the point where I could set up in 18 months time without debts.
Away from the truck driving side the profits from driving have allowed the photography to acquire two new bodies, completely replace the lens selection and cover three out of country events that I would not have been able to afford to cover on PAYE. Approximate cost, £12k.
Going Ltd isn’t for everyone, especially with the regulatory changes the government has brought in but if you have ambitions to own your own truck sometimes or go into some other sort of business it can help you to both set up and save away the capitol you will need.
Well it’s good to see that the Umbrella option is pretty low, so with a bit of luck those will soon be a thing of the past.
Now we just need to get rid of the zero hour contract and lock all the agency scumbags in a a room with CF!
Or is that too much? 
Conor: I get your point but when is an agency worker going to have any sort of financial outlays to lose? A week’s pay at most which is nowhere near the amount of tax you’d wangle back as self employed. At the end of it all I reckon it’s an agency con.
Nsmith you make a good point, I admit and I certainly wasn’t trying to offend when I said it’s stupid, I just think it’s a sneaky move by the agency and if I were asked to go that way about it I would certainly smell a rat.
jef:
The only time it was suggested to move to LTD structure was when my dad found out he’d got illegitimate children as a way to stop claims against him… he paid for them as he should however I’m proud to say.
And I hope the person who suggested he do it to avoid paying was swiftly kicked in the knackers and if it was his accountant, sacked as well.
Thats disgraceful advice to give out and fair play to your old man for taking on his responsibilities.
Evil8Beezle:
Now we just need to get rid of the zero hour contract and lock all the agency scumbags in a a room with CF!
Or is that too much?
Thats well cruel…
dave docwra:
Evil8Beezle:
Now we just need to get rid of the zero hour contract and lock all the agency scumbags in a a room with CF!
Or is that too much?Thats well cruel…
id make them al take a pay cut to a maximum of £41k pa…that would sicken them,and then have the tangs put a curse on them.
after that,itl be no more night trunks for you my lad… 
jef:
Nsmith you make a good point, I admit and I certainly wasn’t trying to offend when I said it’s stupid, I just think it’s a sneaky move by the agency and if I were asked to go that way about it I would certainly smell a rat.
No offence taken. The reason agencies want to deal with Ltd Co drivers rather than PAYE is because they then don’t have to pay the NI and Income Tax etc. It also means that they are not responsible for holiday pay, PPE and things like that. As I said, for me it more than works out in favor but for someone who only has desires to get in, drive and then go home, its a bit of a ballache.