The confirmation of the change to responsibility shifting from the Driver to the Hirer/Agency, has for many been the straw that broke the camel’s back. A steady erosion of the benefits of running work through a Limited business has over the past 3 years been eroded, with changes in dividend taxation, the uplifting of flat rate VAT levels, all of which have added to the view that it’s no longer worth the trouble to remain as an employee of your own limited company, but to move to an employed role is perhaps the sensible option, given that for as little as £2.00 per hour, or if through an agency where they are utilising the NI credit, £1.00 per why have the hassle.
If you have read some social media comment, the decision to make that move may not even be in your hands, with reports that some of the leading agencies reportedly already saying that they will not, going forward take on any drivers who operate through their own limited status companies. If this rumour does turn out to be factual what options are there going to be for the current crop of Limited company operators and the new arrivals to the marketplace.
Many companies are touting schemes to protect income levels after the change, some pf these are already proving to be illegal, the truth of the matter is that those who are confused or considering a change should talk to a professional who understands what the recent changes and the rules mean to them going forward, there will be no one size fits all solution, many drivers spread their income across numerous agencies and hirers, and in some cases fulfil work using other drivers as fulltime employees.
So, in conclusion, talk to your accountant, making sure they fully understand the reason changes, or go to specialist firms who fully understand the impact and implications for the Limited company director/employee driver, I have listed below a few options of advisors/accountants that have a great understanding of the opportunities and the pitfalls, don’t leave it until the 2020 deadline act now.