Lorry driver shortage

glasshouse

Member
Location
lothians
A few years back the HMRC decided to crack down on what constitutes self-employed for taxation purposes (different to the requirements for employment law purposes) & it was decided that an individual driving a clients' vehicle on a job set up by the client wasn't "self employed" - i.e. they are providing the same service as an employee would otherwise do & should be treated as such for taxation purposes & thus the pay attracts employers NI. HMRC decided that it would be down to the employer to make good on any unpaid tax & NI from incorrect self-employed status & so there was no benefit to the employer in trying that dodge.

The other dodge that was used (increasingly after the previous crack down) was for self employed drivers to set themselves up as a Ltd company with only themselves as shareholders, Driver Ltd company bills the client company and then pays the bulk of the money as dividends which doesn't attract NI & has a lower tax rate compared to PAYE. Again HMRC have decided that under IR35 this is tax avoidance as the sole purpose of the Driver Ltd business is to avoid tax. Tighter rules and greater enforcement has again made this very unattractive for businesses as they become liable for the tax that the driver should have paid. The clamp down on IR35 enforcement has again highlighted the role of "self-employed" status and abuses of the system, which has fed back into tighter rules on what can constitute self-employed to the extent that even being an "Owner-Driver" doesn't automatically confer self-employed status if that person only ever drives for one client.
No wonder drivers are short.
 
The secret now and has been guys is be employed and self employed. Set off the profit from employment against the losses of self employment. Bit more difficult in agric now as they changed the law to stop Dyson et al offsetting against farming losses. Without going into great detail the capital allowances of self employment cancel out the other profits. Working away from home, buy a motorhome to stay in. Set off the Vat and then capital depreciation against the employed profits. Myriad of other methods but you will need to pay me in beer.
 

Highland Mule

Member
Livestock Farmer
The secret now and has been guys is be employed and self employed. Set off the profit from employment against the losses of self employment. Bit more difficult in agric now as they changed the law to stop Dyson et al offsetting against farming losses. Without going into great detail the capital allowances of self employment cancel out the other profits. Working away from home, buy a motorhome to stay in. Set off the Vat and then capital depreciation against the employed profits. Myriad of other methods but you will need to pay me in beer.
Aspects of what you are proposing do not pass the “wholly, exclusively and necessarily” test. I would not take your advice.
 
Aspects of what you are proposing do not pass the “wholly, exclusively and necessarily” test. I would not take your advice.
Accountant will never give advice now but you can run your ideas past him and see if he says yes or no. If your accountant has a clean record then there is unlikely to be a problem. Depends on your morals of course.
 

Highland Mule

Member
Livestock Farmer
Accountant will never give advice now but you can run your ideas past him and see if he says yes or no. If your accountant has a clean record then there is unlikely to be a problem. Depends on your morals of course.
Sounds like you’ve got a pretty poor accountant. Mine gives plenty of advice, keeps me on the right side of the law and makes sure my tax bills are as low as legally possible, plus helps with long term planning.
 

TheTallGuy

Member
Location
Cambridgeshire
That's your choice-no one's holding a gun to your head are they?

As one of my bosses used to say to "moaning" staff "There's the gate, no one dragged you through it"
A former boss used to say that all his employees were crap because if they were any good they wouldn't be working for him... then would get all narky if they did find the door! I took great delight in refusing to extend my notice period because the business couldn't easily replace me - shame he didn't think about that before & treat me right!
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 108 38.7%
  • Up to 25%

    Votes: 106 38.0%
  • 25-50%

    Votes: 40 14.3%
  • 50-75%

    Votes: 5 1.8%
  • 75-100%

    Votes: 4 1.4%
  • 100% I’ve had enough of farming!

    Votes: 16 5.7%

May Event: The most profitable farm diversification strategy 2024 - Mobile Data Centres

  • 2,879
  • 49
With just a internet connection and a plug socket you too can join over 70 farms currently earning up to £1.27 ppkw ~ 201% ROI

Register Here: https://www.eventbrite.com/e/the-mo...2024-mobile-data-centres-tickets-871045770347

Tuesday, May 21 · 10am - 2pm GMT+1

Location: Village Hotel Bury, Rochdale Road, Bury, BL9 7BQ

The Farming Forum has teamed up with the award winning hardware manufacturer Easy Compute to bring you an educational talk about how AI and blockchain technology is helping farmers to diversify their land.

Over the past 7 years, Easy Compute have been working with farmers, agricultural businesses, and renewable energy farms all across the UK to help turn leftover space into mini data centres. With...
Top