I’ve recently given up a full time job as a truck mechanic with the intention of finding around 20 - 30 hours part time work a week.
I see a lot of jobs advertised with two rates, PAYE & LTD. I take it that means either I could work direct for them or self employed. Have I got that right?
To take one as an example, this is not one I’ll be applying for as it’s full time + overtime, just to show the rates, it’s £9.41 per hour PAYE, £10.41 per hour LTD reed.co.uk/jobs/lgv-ce-driver-days/29473182
Monday to Friday is about 260 days a year. 28 days holiday means about 1 day holiday earned per 10 days worked, so as self employed I would need to earn the PAYE rate +10% to break even anyway.
What’s the advantage to going self employed then? It seems a lot of paperwork for very little gain?
Is it just that I would be free to swap from one employer to another easily? If I work as a mechanic as well, then I guess I could claim the VAT back on tools as well as the fuel used to drive to work, but then would I need business insurance to carry those tools?
Graham,
I de-registered as a self employed truck driver last September after about 5 years, to fully retire.
everyones personal circumstanses are differant so you need to see an accountant for a, valuation, for want of a better word, the truck stop is not the best place to get advise.
As self employed you benefit from being able to reclaim many expenses by doing a tax return which is very easy. You can also pay yourself in the form of a dividend which attracts lower tax. I have found it most beneficial to be self employed. I also formed a limited company (easy) but kept it dormant in reserve. But you don’t benefit from employee protection laws, holiday pay, sick pay etc. so maintain your union membership
Euro:
But you don’t benefit from employee protection laws, holiday pay, sick pay etc. so maintain your union membership
Union won’t help you unless you take action against your own limited company, i.e yourself.
Most of the legitimate expenses can also be claimed on PAYE as well as an agency worker. The extra quid an hour most agencies offer self employed over PAYE doesn’t make it worth it.
Also as a reminder of the downsides of taking the small salary and dividend pay route Euro has taken, a letter one person on here received from HMRC with a demand for over £15000 of owed tax…
Thanks for the replies.
I’ve got some work lined up already, doing odd minor repairs on a fleet of coaches. I’ve also got a local family transport firm interested in me doing occasional local work and holiday cover for their own mechanics and an agricultural supplier who might want me to drive trucks or farm tractors during their busy season.
Self employed is looking the best option then if that makes it easier to work for at least three different companies.
How does insurance work as a self employed driver? Am I covered by the truck owners insurance or do I need to get my own? Same for working as a mechanic. If I damage a truck while backing it in the workshop or setting fire to it while welding, is that covered by the owner’s insurance?
As your doing some spannering as well you wouldn’t need to go ltd for starters thought if your going to get a van for repairs you need to have it stocked correctly to be able to do anyjob pit of hrs. If your going this road speak to some small to medium companies, for out of hrs cover bulbs air lines etc. Wiring. Also I’d sign up with some one like millers recovery as an agent. Then you could also do driving but cut out the middle man and go direct to the companies your spannering for
Driving wise your covered by the company your driving for. I’d hold off on the vat reg to begin with to see weather or no it will be worth it
Have been self employed for the past 6 years and would never work PAYE ever again. Setting up a LTD company is very simple, just apply to companies house and they will send you the forms. Be aware though if you do go LTD it is a requirement by law to have employees liability insurance as you will effectively be an emplyee of said company ie director. Also public liability insurance is a must but both are reasonably priced and dont cost the earth. If you have assets to protect in the event of going under being a LTD comapny you wont be held account for any debts. However, if its just spannering you most likely have all the tools of the trade to start with so in your case it may be beneficial to just be a sole trader. You do not need to be LTD in order to get work, as long as you have proper liability insurance in place its generally all you need. Im now on the Spanish tax system which is a law unto itself
The coach firm really is just minor running repairs, fan belt adjustment, washer pump replacement, stuff like that that I can do with basic hand tools that I carry in my Land Rover anyway.
The transport firm could be just trailer inspections needing nothing more than a tapping hammer and a torch, or may involve bigger jobs, in which case I’d keep my toolbox there.
Any recommendations for insurers for public liability? Do I need different car insurance? I won’t be doing roadside assistance, but I will be carrying tools and travelling to work.
Is there anyone who an give me direct one to one advice and answer specific questions?
I tried the dole office and all they could do was give me HMRC’s number. All HMRC could do was recommend Citizen’s Advice or the local Chamber of Commerce.
Is there some sort of business start up agency who could help?
As said above go and see an accountant or bank sme manager there usually very knowledgeable about this stuff. And should point you in the right direction also you need todo a bussiness plan it’ll help them see what your going todo
As a director you don’t have to be an employee of your own company, especially if you or the only person in that company, which negates the need for employers liability insurance.
Besides, if you have an accident, who you going to sue ? … Yourself ■■
peirre:
As a director you don’t have to be an employee of your own company, especially if you or the only person in that company, which negates the need for employers liability insurance.
Besides, if you have an accident, who you going to sue ? … Yourself ■■
peirre:
As a director you don’t have to be an employee of your own company, especially if you or the only person in that company, which negates the need for employers liability insurance.
Besides, if you have an accident, who you going to sue ? … Yourself ■■
Wrong…if youre running a ltd company you become a director of that company meaning you are an employee of that company, its required by law with fines up to £5K if you dont have it.
Ive run a ltd company and had both employee and liability insurance.
Dont take my word for it, get in touch with any ins co. that provides this cover and they will tell you the same.
get facts straight before spouting off wrong info…
Euro:
But you don’t benefit from employee protection laws, holiday pay, sick pay etc. so maintain your union membership
Union won’t help you unless you take action against your own limited company, i.e yourself.
Most of the legitimate expenses can also be claimed on PAYE as well as an agency worker. The extra quid an hour most agencies offer self employed over PAYE doesn’t make it worth it.
Also as a reminder of the downsides of taking the small salary and dividend pay route Euro has taken, a letter one person on here received from HMRC with a demand for over £15000 of owed tax…
The only reason why A.J Logistics UK Ltd would have received this letter is due to his company using the services of Think Accounting Ltd whom have been deemed an MSC Provider by HMRC, if he had used a conventional Accountant then he would not have heard anything from HMRC.
Public liability and employer ls liability only come into force if you you employ or use a subcontractor ie if the wife does the books as a employed or contractor. They will tell you that because they want to sell you a product. Other than that Pl and employers liability.
If you are a director of a company you are not an employee unless you are in an umbrella scheme as Pierre says. Both of us are freelance if memory serves correct. If you director and employee then any tax advantages go out the window to being ltd
