Have read posts about whether or not to become ltd driver. Some drivers are saying its a con by agencies to get round the cost of employing someone, NI contributions, holiday pay etc, but when I look at the difference in hourly rate, say £2 an hour extra x 50hr week = £100 x 52 = £5200 a year, it looks like it would be worth it.
Maybe I’m over simplifying it, so any advice on the matter would be appreciated.
JRjr:
Have read posts about whether or not to become ltd driver. Some drivers are saying its a con by agencies to get round the cost of employing someone, NI contributions, holiday pay etc, but when I look at the difference in hourly rate, say £2 an hour extra x 50hr week = £100 x 52 = £5200 a year, it looks like it would be worth it.
.
Yep you’re forgetting one thing for a start, holiday pay. You don’t get any. So assuming £10 PAYE and £12 S/E, holiday pay is worth an additional £1.07 per hour on top of the PAYE rate so you’re now only 97p in front as self employed.
Next kick in the nuts. You don’t get a workplace pension. Employer has to contribute 3% so that’s an additional 30p/hr for the £10 PAYE. Self employed is now only 67p ahead an hour.
Final kick in the nuts is the guy on PAYE gets their PPI (hi-viz, work boots, gloves) provided for free, they get SSP, the employer legally has to pay them on time and pay them correctly.
So 67p per hour, 50hrs a week is £1742 you’re better off by. That £1742 needs to cover your accountancy fees, it needs to cover any employers NI you have to pay, any insurance you’re required to have and you have to pay for your PPI too. To do that you need to be at least £3.50/hr more Ltd if the PAYE rate is £10/hr.
And for that meagre amount you’re left with you lose all rights and protections as an employee. You don’t get sick pay, you don’t get paid holidays, you don’t even have the right to be paid on time and you’ll be perpetually looking over your shoulder hoping that HMRC don’t decide you didn’t meet the criteria for being self employed (which you don’t), sending you a tax bill for all the expenses you claimed that they disallow.
as above in 4 words.dont ever go ltd.
Now that HMRC have slaughtered the margins on the FRS VAT when in the past you kept approximately 50% of the VAT generated, it’s not worth a toss being Ltd and the many grey areas that surround being Ltd means HMRC can interpret legislation any way they care to!
There must be hundreds of reply’s to this very question. I don’t recall one of them saying yeah fantastic idea, this time next year you’ll be a millionaire.
Therefore, sticky this post and we can direct future askers of this bloody question up there with a flea in there ear.
Mini rant over. [emoji57]
It might have been Robert Maxwell who said summat on the lines: “tell people a lie that they want to believe, and they will”.
People want to believe in free money, deposed Nigerian Princes with cheques to give you, hookers who tell you that you’re handsome, and agencies paying over the odds. They (we *all) want to believe they’ve got the jackpot.
.
.
*We all tend that way, we mostly see through it.
As of the 6th of April 2020, it will be virtually impossible for you to be a LTD agency lorry driver.
So ’ not to be ’ is the answer. No more ripping the taxpayer off and taking the ■■■■ and it’s long overdue. Start paying your share into the country parasites…
nomiS36:
There must be hundreds of reply’s to this very question. I don’t recall one of them saying yeah fantastic idea, this time next year you’ll be a millionaire.
Therefore, sticky this post and we can direct future askers of this bloody question up there with a flea in there ear.Mini rant over. [emoji57]
In the time it took you to write the reply you could’ve answered the question.
You’re obviously just an a bit thick.
JRjr:
nomiS36:
There must be hundreds of reply’s to this very question. I don’t recall one of them saying yeah fantastic idea, this time next year you’ll be a millionaire.
Therefore, sticky this post and we can direct future askers of this bloody question up there with a flea in there ear.Mini rant over. [emoji57]
In the time it took you to write the reply you could’ve answered the question.
You’re obviously just an a bit thick.
4 posts & can’t figure out the search facilty? NomiS36 answered the question & does NOT deserve to be called ‘‘a bit thick’’ just because it wasn’t what you wanted to hear.
JRjr:
nomiS36:
There must be hundreds of reply’s to this very question. I don’t recall one of them saying yeah fantastic idea, this time next year you’ll be a millionaire.
Therefore, sticky this post and we can direct future askers of this bloody question up there with a flea in there ear.Mini rant over. [emoji57]
In the time it took you to write the reply you could’ve answered the question.
You’re obviously just an a bit thick.
Well, not really, he did answer the question.
It has been discussed on here many times before and for numerous reasons it is not generally considered to be a good idea.
I don’t know the answer because I’ve never been “thick” enough to even consider it [emoji23]
It’s been asked about loads of times on here and every single time the emphatic reply’s have been don’t do it.
If you don’t understand “don’t do it” or words to that effect I think I could call you “thick”. However, I’m above silly childish name calling so I won’t. You may be egg heads material, I don’t know so crack on [emoji23]
If you go for ltd. please keep us informed how it’s going [emoji6]
Franglais:
It might have been Robert Maxwell who said summat on the lines: “tell people a lie that they want to believe, and they will”.
People want to believe in free money, deposed Nigerian Princes with cheques to give you, hookers who tell you that you’re handsome, and agencies paying over the odds. They (we *all) want to believe they’ve got the jackpot.
.
.
*We all tend that way, we mostly see through it.
Don’t really think it’s to do with the above scenarios, albeit said tongue in cheek, totally to do with Government/HMRC moving the goalposts. It was good in its day, total tosh now.
As others have said. It is much simpler to be PAYE. £2 an hour difference isn’t enough to make it work.
If the pay difference is higher, say around 40% Then it might make some sense, but you’ll need to do a lot of reading and research to see how to make it work and keep out of IR35 regs.
It doesn’t help HMRC have lowered the dividend tax free rate from 5K to 2K from memory and changed other rules etc - I can’t see things improving in the near future either.
SSP is crap and I would recommend if you think you might rely on it in the future, to look at some kind of income protection insurance.