Self Employed

[Skylark]

Hello Everyone,

I am thinking of going self employed as a HGV driver and i was just wondering :-

Would i register a business as a LTD or SOLE ?

How do i go about paying ax, or working if out each month to pay ?

All new to me so please be easy

[pawncob]

First make sure you're self employed.
https://www.gov.uk/guidance/employment-status-indicator

Then read this.
https://www.gov.uk/working-for-yourself

[Skylark]

First make sure you're self employed.
https://www.gov.uk/guidance/employment-status-indicator

Then read this.
https://www.gov.uk/working-for-yourself

Thanks for getting back in touch, i would say i am self employed, as i work for myself, as and when, and can be for different companies.

So would i go as a LTD ?

[bd6759]

[So would i go as a LTD ?

Then you would not be self-emplloyed. You would work for LTD.

[RMC]

Why do you want to do self-employed or work through a Ltd company? This is called ‘false self-employment’ and generally speaking puts you at a disadvantage. You’d lose all your employment rights – to Sick Pay and holiday pay, not to be unfairly dismissed, statutory paternity pay, workplace pension, payments if you are temporarily laid off etc. Presumably your employer offers a large pay increase to compensate for that?

But if you insist, go self-employed, trading through a Ltd company is too complicated and can be costly.

[Skylark]

Good Morning,

Many owner driver companies like drivers self employed for this reason, as when work goes south they can pick and choose when they need you, which to be honest i don't mind.

But i am unsure which to do to the best advantage for myself, that's the reason i have asked, going ltd would it be more tax i would have to pay as well ? and if i went sole could i change to ltd further down the line if needed ?

[pawncob]

It can be tax efficient to use a LTD, but there are certain responsibilities that come with it.

Generally S/E is better suited to your trade, but an argument could be made either way.

[RMC]

You will need an accountant to prepare your tax returns, computations and, in case of a company, do PAYE reporting. Ask him or her for advice. If your main worry is saving tax, best if you incorporate.

[bd6759]

If your main worry is saving tax, best if you incorporate.

In a small business, the tax saved will be eaten up by the additional costs.

[SteLacca]

There is no "One size fits all" answer to S/E v Ltd. You need to sit down with a professional and crunch the numbers with him. In particular, the new dividend tax from 6/4/16 has thrown a hefty spanner in the works of what was, historically, a simply calculation. Now, more attention has to be paid to your own needs, expenses to be paid, possible company structure etc.