Like many agency drivers I was funnelled into the Ltd Co route.
This has been a good year - I’ve only dropped about 8 days, and I’ve been fortunate that two places which knew me already needed cover while they hired new drivers. Having ADR helps to keep busy.
But the stress of sorting out work gets me down. I juggle 4 agencies.
How do you Limited / self employed guys source that regular ongoing work? Or did you just say ‘screw this’ and settle for a little less money and a regular PAYE job.
I talked to one driver who works 49 weeks a year for one haulage company, then does a week or so elsewhere to stay onside with the law, sounds sketchy to me.
Directly for several of my clients. If you can cut out the middlemen (bloodsucking scummy agencies) out, you can agree a rate that benefits you and the people you’re working for. If you want to be competitive you have to juggle, it’s the only way to keep everyone happy.
If you go Ltd you’re gonna put more into it than just waiting around for a PAYE payment every week. I used to put in long hours with paperwork, seeing my accountant and generally keeping it all going smoothly.
I am struggling with this too. If I work exclusively with one agency (I am part time now) then I may be better off as PAYE but if I work for more than one then I get hit with tax increases on a 2nd job which negates the benefit of PAYE (employers NI is costing me a total of 34% off my gross)
foresttrucker:
Or did you just say ‘screw this’ and settle for a little less money and a regular PAYE job.
I talked to one driver who works 49 weeks a year for one haulage company, then does a week or so elsewhere to stay onside with the law, sounds sketchy to me.
It is sketchy but then again so is what you’re doing because someone tells you how to do the job so you don’t meet HMRC guidelines. HMRC have stated that effectively the only way to be self employed as a truck driver now is if you own the truck.
Also your bit about being worse off than being on PAYE, are you still claiming travel expenses which you’ve not been able to since HMRC changed the rules in April? Are you factoring in the employers NI you have to pay and the holiday pay you don’t get? Are you factoring in your accounting costs and looking at the total net or are you doing what most self employed drivers do and only looking at the turnover?
foresttrucker:
Or did you just say ‘screw this’ and settle for a little less money and a regular PAYE job.
I talked to one driver who works 49 weeks a year for one haulage company, then does a week or so elsewhere to stay onside with the law, sounds sketchy to me.
It is sketchy but then again so is what you’re doing because someone tells you how to do the job so you don’t meet HMRC guidelines. HMRC have stated that effectively the only way to be self employed as a truck driver now is if you own the truck.
Also your bit about being worse off than being on PAYE, are you still claiming travel expenses which you’ve not been able to since HMRC changed the rules in April? Are you factoring in the employers NI you have to pay and the holiday pay you don’t get? Are you factoring in your accounting costs and looking at the total net or are you doing what most self employed drivers do and only looking at the turnover?
My accountant is happy for me to claim my travel expenses… I’m in the middle of doing my year end right now.
Holiday pay + zero stress about what I’m doing a month or two months from now would be worth something. The self employed lifestyle would suit me better 5 or 6 years from now once I’ve made my target wedge of savings.
And to be self employed you should have income from more than one source, ie working for one agency all year round you cannot be according to HMRC self employed…
Connor he won’t be paying employers NI IF he goes the ltd route also hell most likely be on the low earnings exemption so won’t pay any Ni but will still be credited his stamp