Hi guys me n my girlfriend are trying to start up so I can become a owner driver. Looking at the o licence forms I need to register what type of business I have. Do I go as self employed, limited, private limited or what■■? I don’t want to lose everything should it all go ■■■■ up like my house n car.
Do I set up n pay myself a set wage every week n pay the tax on that and be like I’m employed then at the end of the year pay tax on any profits the company makes?? Or self employed where I pay tax at the end of the year at a lower rate?? What do you owner drivers do?? Can you start as one then turn to the other??
Thanks
You need to look at what you need to to do to run as a sole trader or as a ltd companiy. Different rules apply, and each has its advantages and dis-advantages. If your a one man band maybe going in as a sole trader is best. Howeevr, i would advise you to do your costings first so you know whatto charge for jobs, or know what work is profitable for you. Seek advice from you local Biz gateway office on setting up a business. Depends on your finances and circumstances fella. good luck.
Go and see an accountant as they will be able to advise you best
first thing to say mate is, have plenty $$$ behind you, assuming you/partner have a decent cash reserve (around £10,000 after truck purchase) then ‘lend yourself’ the money , start as a sole trader is easiest but you cannot change to a ltd co later as its a different entity so need to apply for new o licence, by lend I mean open a business bank account (DONT TOUCH NATWEST IF YOUR HUMBER AREA) and put cash in it. show this loan on your balance sheet and make payments back to yourself as and when . use your business debit card for fuel unless you can get a biz credit card with your account and make sure you pay in full on due date, it wont cost you vastly more than a diesel card, before people start saying your diesel must be invoiced to you to comply with vat rules ive paid ‘cash’ for my diesel for years coz asda near me as cheap as any fuel card and you get longer interest free than 7 days end week on fuel card, just off top of my head factor these costs on top of wagon purchase , road tax £1300 , inspection/thorough service (my average for new to me wagon) £1500, insurances £3000+ depending on g.i.t. . fuel (if you can negotiate early payment) lets say 4 weeks £6000, if I’m honest unless you got some good paying work lined up ,which in my opinion HAS to be min £1.70 all miles (and plenty of them) don’t give yourself the headache , I wish you luck but it can put heck of a strain on you and the mrs , if your both happy now being an owner driver wont make both of you happier ,