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Switching your drivers to limited companies: the benefits and roadblocks

10/09/18 | Advice & Guidance, DNI Cover

I can hardly remember the time when contracting as a limited company wasn’t being talked about in our industry. While it’s true that some drivers prefer to remain employed and have all the admin taken care for them, others prefer to strike out alone and reap the rewards.


Why limited?

There are many reasons why agencies want their drivers to switch to a limited company model:

  • An assumed level of professionalism: trading as a limited company gives your driver more clout than a sole trader would have.
  • Proper procedures: Driver’s negligence insurance, public liability insurance and proper banking procedures are, again, assumed in many cases – but provide extra cover for any mishaps or mistakes.
  • Simplified processes and an enhanced take home pay for your drivers: It’s a much ‘cleaner’ transaction for your agency and your driver’s take home pay should be higher than if they were employed.

Okay, so if you remain unconvinced on the benefits of switching to a limited company model, check out this article to become a convert. If you’re already on board, let’s continue.


How to switch

The driver’s themselves will have to go about getting a Companies House listing, proper banking procedures and fulfilling all of the usual director’s responsibilities.

Or you can refer them to us and we can do this all for them and ensure they avoid roadblocks from £20 a week.



There are roadblocks in the way that any driver considering this path should consider.

IR35, yet again, throws up a roadblock – but rightly so. When IR35 was first introduced in 1999 it was designed to stop what was referred to as the Friday to Monday situation – where a worker would resign on Friday and return Monday as a contractor.

To avoid this scenario it is best to have your contract reviewed by an IR35 contract expert and if you’re ready to roll contact us here.


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