I want to start driving HGV on the weekends, I have passed my class 1 and have my CPC so I am all good on that front.I have already signed up to an agency but have yet to commence work with them.
I am a little weary of the tax side of things and don’t want to start earning some extra money now, only to receive a massive tax bill through the post later on down the line.
I am unsure if I have to pay more tax because it’s a second job etc?
You’re now in the traditionally quiet period for agency work - but carry on trying. Also try local operators direct.
On the tax front, unless you try and be clever, any extra pay will be taxed at source so nothing to worry about there. Making the assumption that your tax allowance is fully utilised in your full time work, any extra will simply attract tax at the normal rate. It’s possible to get into the higher rate of tax but you will know if you’re close to that limit.
I’m currently doing exactly what you are planning on doing.
Agency won’t throw you straight into weekend class one work. They either have preferred drivers or the client won’t have you because of the amount of time you have had your class one (I’m assuming it’s less than two years like myself, if I’m wrong then ignore that part)
You will most likely get put into 3.5 7.5 or class two work for a while. It’s almost like a right of passage until you tell them you will only give up your weekends for class one, the work oppertunities will slow down a little bit the quality will rise (I barely ever touch anything other than class one now)
As for tax mate I’m going to assume you have a full time job already, which has a normal tax code. If that’s the case then anything you earn has to be on a BR tax code, which means you will get taxed 20% on everything you earn. One on that though, don’t trust the agencies to get this right for you, when you get your first pay check hit the bank make sure you check your payslip, if it doesn’t say BR then call HMRC and do it yourself, it takes all of five minutes and they will then make sure your next pay will be correct. It’s the only way to stop a large bill in April.
So in short, check your tax code, yes you will pay more tax if your first job already gives you your yearly tax free allowance.
And stick to your guns, if you can afford to turn down the smaller work then do, but only after doing a few to show them you aren’t a pleb.
That’s put me at ease to be fair, I’ll just wait out for my first pay check and make sure everything is right with HMRC.
I have had my license since 2013 but it’s all been military work, no CPC until recently. So for now I’ll be happy just earning a few extra quid on the weekends as oppose to any specific work, class 1 for instance.
Still in, but I’ll be out this time next year so started earning as a side job with a view of going full time when I’m out.
Don’t stick to just one agency either, I’m with four at the moment, never short of work whenever I ask for it, getting to the point now where I can ask some companies direct and not bother with agencies which is brilliant for when I’m on leave, don’t go back till the 8th and I have just lined up a quick £500 for next week, it’s so worth it.
Can’t emphasise enough about checking the Tax Code. I too am ‘in’ and a few years ago took on a lot of agency work at a weekends and during leave. My addresses didn’t match with the tax man, so he assumed it was my sole income and I was paying 0% tax as I initially was under the threshold. This took time to change, in between I was getting good bonuses for doing relocation work and suddenly I owed a lot of tax. It changed my tax code for the following year.
You might want to worry about drivers hours regulations too. If you have a regular Mon-Fri job then that counts as ‘other work’ and, in simple terms, you will be restricted to working only one driving day every other weekend.
On the pay front, you’ll be earning low wages with few shifts, so if the agency pushes you into an umbrella or limited company arrangement through an accountant you’ll see a significant chunk of your earnings disappearing in charges, costs etc. You should discuss pay options with the agency and see if they’ll put you on PAYE themselves. This will probably mean you have to work on multiple contracts (because of legal and regulatory complications with employment rights), but if you have no experience you might struggle to find an agency with multiple contracts available AND willing to take inexperienced drivers.
It can be an expensive business just to be paid as an agency driver, everyone is taking their pound of flesh out of you.
