Hi everyone,
I am new to the forum and have a question whilst I train for my C+E licence.
Upon completion, and when looking for work, what are the benefits of being a self-employed driver (LTD Company) compared to being employed?
Specifically, I am concerned how mortgage lenders will view me in terms of the criteria I will need to meet if I am self-employed.
I have traded as a LTD company before (in retail) and although I was Director, my wage slips confirmed I was just an employee, and during this time I was not planning on moving home or looking for a mortgage.
Does anyone have experience they can share regarding being LTD and obtaining secured lending/mortgage and advise on anything I should consider?
Cheers,
J.
If its a mortgage you need then go for a paye job and forget self employed.
Hi alix,
Are you able to provide any further information specific to my original message please. Do you have experience of obtaining a mortgage as a LTD Company? Will I need a certain kind of Director mortage or will they accept me as an employee of my own company?
Obviously I am trying to gather as much information as I can.
Thanks.
Can’t say specifically regarding driving jobs, but I know my previous boss got his mortgage after the company went LTD and it required an accountant to sort out all the paperwork, of which there was an awful lot. He ended up having to go to a broker in London and a mortgage company from Sweden I think as most either wouldn’t touch a small company with two directors (him and his wife) or wanted very high interest rates. He was well established, profitable etc but didn’t seem to make much difference.
Best to make your life easier and keep PAYE - banks and such like easy, even if there’s no real difference in liabilities…they ain’t always very bright.
Employed every time due to regular wages job security and when applying for mortgages etc most banks will shy away from self employed specially if you haven’t been SE very long.
Also employed means no self assessment to do and holiday pay and poss sick pay and a pension.
When you say “self employed” do you mean you’ll be getting work directly from a company or working for an agency on a self employed basis ?
If I was self employed (once I start looking for work) it would be to both driver agencies and companies. Do they reap separate benefits?
This leads me into my next question; if you work for an agency as employed, are you considered as employed by the agency and therefore pay tax via PAYE?
Thanks for your responses guys, it’s a big help to this newbie!
trevHCS:
Can’t say specifically regarding driving jobs, but I know my previous boss got his mortgage after the company went LTD and it required an accountant to sort out all the paperwork, of which there was an awful lot. He ended up having to go to a broker in London and a mortgage company from Sweden I think as most either wouldn’t touch a small company with two directors (him and his wife) or wanted very high interest rates. He was well established, profitable etc but didn’t seem to make much difference.
Best to make your life easier and keep PAYE - banks and such like easy, even if there’s no real difference in liabilities…they ain’t always very bright.
Well to counter that, I got a mortgage in 2004 when we had about 15 employees and the sole director. Wandered into Nationwide because my personal account was there and they more or less gave me a mortgage then and there.
However, being a self-employed driver is a different kettle of fish altogether. I suspect that it would be harder than being an employee.
Might be worth you going to Money Saving expert forum and onto the mortgage board,t here are a couple of mortgage advisers on there who should know. Question may have been asked already.