Iv noticed a lot of drivers have gone self employed these days? Is it really worth it? I’m getting images of late payments, in and out of different vehicles and not knowing where ur gonna be from one week to the next or have I got it all wrong? I bet u can put in a nice tax return in April:) please enlighten me on a few pros and cons please
Pros.
You get to put more of your money in your pocket.
Cons.
Most of the time the agencies are only paying a quid an hour more than PAYE which doesn’t even come close to compensating you for the additional costs and losing holiday pay.
You have no employment rights other than with yourself if you’re structured as an employee of your own company.
The biggest downside is the witch hunt now on the go with HMRC with agencies and the people working for them as Ltd. There has been at least one person doing that on here who posted a picture of the tax bill they got from HMRC for over £16,000 because the job didn’t qualify as self employed so those £100s a week they were claiming as expenses were disallowed and tax they’d avoided was now due, the money they’d not had to pay out in national insurance by taking part of their money as a dividend all had to be repaid.
Conor:
Pros.
You get to put more of your money in your pocket.Cons.
Most of the time the agencies are only paying a quid an hour more than PAYE which doesn’t even come close to compensating you for the additional costs and losing holiday pay.You have no employment rights other than with yourself if you’re structured as an employee of your own company.
The biggest downside is the witch hunt now on the go with HMRC with agencies and the people working for them as Ltd. There has been at least one person doing that on here who posted a picture of the tax bill they got from HMRC for over £16,000 because the job didn’t qualify as self employed so those £100s a week they were claiming as expenses were disallowed and tax they’d avoided was now due, the money they’d not had to pay out in national insurance by taking part of their money as a dividend all had to be repaid.
Think accounting? Or whatever there called. Follow the rules and theyll be no problem. Think didnt follow the rules hence the problem.
Self employed, ltd, paye are three different things
Each has different rules amd regs.
Another big pro, working when you want, for how much you want. And having the ability to say no. If i want to go on holiday then i go on holiday.
Concretejim:
Think accounting? Or whatever there called. Follow the rules and theyll be no problem. Think didnt follow the rules hence the problem.
.
Most agencies don’t in respect to Ltd drivers working for them. There are very very few agencies where you as a ltd driver doing work for them get told what they want you to do and you can then send someone else in to do it.
The MSC rules are very specific. Its not a self employed position if you’re being told what to do and are under instruction from a “boss”.