You may be starting out as an HGV driver having recently got a license or have been in the business for years with many miles under your belt. Either way it is always worth checking what accounting set up works best for you. In other words working out how to keep as much of your hard earned cash in your pocket. With this in mind there are three main options available to HGV drivers:
When you work PAYE you pay tax and national insurance on the payments you receive. You are also unlikely to be able to claim a lot of your expenses, although sometimes these are paid for by the company you drive for. Most drivers do not receive sick pay, but will usually receive holiday pay, you may have a zero-hour contract which means you are not entitled to paid time off.
Become a Limited Company!
We know it might sound daunting to become a Limited Company, but not if you have the right help; that’s where Driver Unlimited services come in. The limited company allows HGV drivers to receive a higher rate of pay per hour. Income is drawn from a small salary, expenses and the rest in dividends. Registration for VAT is voluntary and can be financially beneficial but will be discussed on an individual basis. Currently VAT is on the flat rate scheme which means charging VAT at 20% on the invoice but only paying 10% to HMRC as you would not claim VAT on expenses. Many expenses can also be claimed which reduce the tax bill at the end of the year.
So those are the three options. The limited company structure offers far more scope and money in your pocket which is why at Driver Unlimited we encourage HGV drivers to seek professional advice before they set up as a limited company.
In order to help run your limited company we carry out the following on your behalf letting you get on with the driving:
- Included Software
- VAT Returns
- PAYE (as a company that employs someone, even just themselves, they must be registered for PAYE)
- Self-assessments (one every year for a Director)
- Accounts and Corporation tax return (submitted every year)
- Confirmation Statements
We do all of the above for a weekly payment of £10 and you will get your very own Dedicated Advisor will keep in regular contact with you, so nothing is ever missed, so no more HMRC deadlines or fines to worry about.
Driver Unlimited can also cover HGV drivers anywhere in the UK. To find out more please call on 0345 872 4970 today or contact us through our contact form.