These days it seems like everyone and their dog wants their drivers to switch to trading as a limited company. But why is this? It’s most definitely not for everyone. But why should the drivers go through the hassle of registering with companies house?
Gone are the days…
Gone are the days when a driver could just turn up, throw his details across the counter on a piece of scrap paper and start driving. Clients expect more these days – they expect a business relationship that’s built on trust and professionalism. Not just some guy who keeps his receipts in a shoe box. That’s not to say a sole trader can’t do these things – but a limited company adds a weight of professionalism to proceedings.
Is that all?
Well no, that’s not all. Agencies that have their drivers using the limited company model can be sure of a few truths.
Their drivers will need to have companies house listings, proper banking and accounting procedures and public liability insurance that covers you for any mishaps. These days it’s also a common requirement to have drivers negligence insurance in place too (not a problem with the Driver Unlimited offering, where it’s all part of the package).
Simple processes and better pay
For the agency it creates a cleaner financial transaction too. They don’t have to go to the trouble of calculating tax, NI and other deductions – that becomes the responsibility of the Limited company driver. And there’s a reason why the limited company is happy to do this – they usually get a higher take home pay package!
To find out whether the limited company route might be the most suitable for you or your drivers give Driver Unlimited a call on 0345 872 4970.