bye bye tesco

[Scanny]

im sure at least a few members are aware of my contempt towards tesco after spending so many hours working for them and losing a third of my net pay as a result. its coming to an end!
last week i had an interview with a business advisor. on monday i attended a seminar on starting a business, thursday night was the finances and this morning i approached my target as my main client and not only did they reveal the rates other drivers are being paid, but they snapped me up and offered to pass my business card to one of their contractors to generate more work for me. although i have worked for them many times, i think this is down to the old ex army network that often offers otherwise difficult to gain opportunities.
i have an appointment with a bank business advisor on tuesday which will hopefully lead to a business account and having a potential lucrative contract (WAY more than my current rate of pay and thats me setting my own charges) can only be helpful.
plus of course the reason i have decided to go self employed is partly to get back in with this specific client although i will by law require at least one other to maintain my eligibility as self employed but im sure i can poach another client from my agency.

it feels so good to throw off the shackles of agency work and be completely independant even though i still want out of driving altogether. running my own company certainly wont do any harm to my CV though

[Rambaud]

Sounds interesting.

Good Luck with the new venture.

[N.B. There is no legal requirement to have more than 1 client to be classified as self-employed. Admittedly, it can be more difficult to convince HM Revenue & Custom. And a new business nneds be registered within 3 months or there can be a £100 penalty.]

[Scanny]

it means going back to what i want in trucking. nights out in a decent truck like:
http://i19.photobucket.com/albums/b164/scanny77/trucking/30062008568.jpg
that was brand new, not only in registration but brand new on the market at the time
i wont have to rely on someone phoning me to offer work that i dont want. i will have to get out there and source my own work but at least i can set my own rates and choose who i work for and when i work for them. i didnt really have to try today which is good but i wanted the sales experience. still, i have a client lined up which is the main thing, especially as my biggest sale will be the bank. i do have a minimum rate that i will work for and a target rate but my first client is paying other drivers slightly more than my target and i am not adding a premium for weekends or bank/public holidays which should make my services financially attractive. i am still looking at an extra 33% on top of my current hourly rate plus much longer hours with less expenditure including a fixed NI contribution of £2.40 a week and lower tax on what little wages i will be taking. there is no point in spending my net income if i can justify it as company expense. as i use my car for commuting, i am hoping running costs such as servicing will come under expenses

i wish i had looked into this years ago instead of being scared off by the book keeping side of it

this does still seem daunting but also exciting. the hardest part will be the first month as the payments are a 60 day set up but they pay in 30. a few months ago and this wouldnt be a problem as i would have had more pocket money but cut pay and hours has really cut my expendable income to virtually nothing. it will be tight but if i wait and hope to get a few more hours i will miss the holiday period which would cost me a lot more in lost revenue. sod that!

[TAR]

best of luck with your new venture.

It takes some balls to decide to be self employed but I'm sure you won't look back.

:happy:

[Rambaud]

That looks a bit bigger than a Mitsi Estate. :)

I used to drive the dustbin lorries when they came into the council depot for cleaning, but they were much smaller than that beast!

Yes, servicing will be a legitimate business expense.

There is software that can take care of the bookkeeping/accounting side of the business. You might be better off trading as a limited company or partnership etc. You need to do a bit of number crunching. Did you do a Business Plan/ Cash Flow Forecast for the bank? The latter is, IMHO, essential - as most businesses fail not from lack of profits but lack of cash.

PM/email me if you need any pointers.

[Spirit]

Good luck with the new venture mate.

Regarding the self employed bit.....it is important to get things right as if you only have one major client (or indeed most of your work is for one client) then the HMRC will expect you to be PAYE. A limited company may be worth considering but of course is more complex and has stricter rules etc. Might be worth getting some advice (maybe from your bank) ?

[VR4Kaos]

best of luck mate !

[bradc]

What part of regulations over there make a single driven axle popular? Over here there are 3 popular combinations for long distance general freight work:

Truck and Full Trailer:
http://www.hankstruckpictures.com/pix/trucks/rod_simmonds/2005/jan/kenworthmainfreight.jpg
http://www.hankstruckpictures.com/pix/trucks/rod_simmonds/2005/apr25/emmersons38kenworthk104.jpg

Tractor and Semi-Trailer:
http://www.hankstruckpictures.com/pix/trucks/robert_dick/tl4964lc.jpg
http://www.hankstruckpictures.com/pix/trucks/alex_vincent/2009/09-26/stl/p1120190.jpg


B-Train:
http://www.hankstruckpictures.com/pix/trucks/craig_hayward/2004/oct24/obrien_freight_freightliner.jpg
http://www.hankstruckpictures.com/pix/trucks/alex_vincent/2010/03-18/dsc_4735.jpg


All of them will have dual driven axles at all times and due to the way the taxes are done over here, it is cheapest to have as many axles as possible!

[andyleaves]

Top man, well done.
I really hope it all goes well for you.

[Scanny]

thanks for the support guys.
i havent finished the course yet. i have the bank advisor on tuesday which is also putting my business plan together. it seems i have a far better idea of business than i had imagined although admittedly, i am targetting clients i have worked for through the agency as well as a few i havent but i am aware of. the following monday is a session with someone from the tax office so i can clarify any questions then.
as i am new to the whole business world i have taken steps to ensure i know what i am letting myself in for so falkirk for business is supporting me and will keep an eye on me for 3 years. they provide advice and courses free and they have strongly advised i trade as a sole trader rather than limited company and i have no reason to question their advice. a limited company would offer me protection if the business failed but as i will not need any creditors, i really dont see the point in going down that road. its extra expense that i would be throwing away. i really dont need sick pay or holiday pay so why pay extra national insurance or employers liability insurance if i wont use it? some clients apparently insist on public liability insurance and the quote i got was £148 for the year with £2 million cover and is only advisory, not mandatory.
obviously i will only be able to work for one client at a time so i am trying to get other drivers to work with me to pass work to. if i am never available i will lose contracts so although i wouldnt take a cut, supplying another driver will at least keep the clients happy so when i do need them i still have them. fortunately tesco i highly unpopular with a lot of drivers so networking is proving quite easy

if all goes well i could be looking for a company car next year. no prizes for guessing what that would be. that does need researching though. tax and insurance would be the deciding factors between buying private or company. if i buy through the business account it wouldnt count as wages so no income tax but im not sure how the VAT man would see it although VAT is lower than income tax so it may still prove cheaper that way

[Scanny]

What part of regulations over there make a single driven axle popular? Over here there are 3 popular combinations for long distance general freight work:


having never owned a truck, i cant give a definative answer but i would hazard a guess that its either road tax or the maximum weight restrictions. we have a limit of 44 tonnes on 6 axles which dont really need more than a single drive axle. our normal power range is 400 - 480 HP although the manufacturers do go up to the region of 700 HP now but that is aimed more towards sweden than the UK due to the steeper inclines. volvo and scania (both swedish) are always trying to get one up on each other with more power
almost all of our trucks are single drive axle regardless of whether they have 2 or 3 axle tractors
http://i19.photobucket.com/albums/b164/scanny77/trucking/12092008711.jpg
http://i19.photobucket.com/albums/b164/scanny77/trucking/29052009134.jpg
http://i19.photobucket.com/albums/b164/scanny77/trucking/18052009123.jpg
http://i19.photobucket.com/albums/b164/scanny77/trucking/31052008468.jpg
http://i19.photobucket.com/albums/b164/scanny77/trucking/CF.jpg
http://i19.photobucket.com/albums/b164/scanny77/trucking/SF06DUHside.jpg
http://i19.photobucket.com/albums/b164/scanny77/trucking/fyffes2.jpg
i have worked for a LOT of different companies and driven a lot of different trucks. since leaving the army 8 years ago i have only had one job that wasnt agency and i gave that up after 10 months when i moved back to Scotland 5 years ago. this was my truck and it still remains one of my top 2 favourites
http://i19.photobucket.com/albums/b164/scanny77/trucking/rankstruck.jpg
this is the other top 2 and i cant decide which i like better. admittedly, this one is the top of the range model. mercedes actros megaspace executive. the floor is approximately 5 1/2 off the ground and i could still stand up straight inside
http://i19.photobucket.com/albums/b164/scanny77/trucking/SF06DUHfront.jpg
http://i19.photobucket.com/albums/b164/scanny77/trucking/SF06DUHopendoor.jpg

[Rambaud]

Potential protection from creditors is only one advantage of a limited company - which will be negated if personal guarantees are required (e.g. for a bank loan).

It is the option to be "paid" by dividends from the company, avoiding ALL National Insurance contributions, which can be very useful. The usual route is small salary (covered by Personal Allowances) plus the appropriate balance in dividends. In theory, monthly dividends are possible, but quarterly is usually preferable.

Also, it will depend on initial profit levels. Often start-up costs mean there might be a Loss in the first trading period. If so, a sole trader is best, as this Loss can generate a tax refund from HMRC.

Sometimes the bigger clients prefer to deal with a limited company. Have you asked any of them yet?

[valleyforge1]

Absolutely fantastic venture mate and I hope it all works out for you. Its one hell of a hard business to be in and one that I would not even know were to start to look at getting started. As being a trucker myself I think me and you understand things that other people could not even start to conceive. Really hope all this works out for you. I will be keeping a close eye on this thread.

Its not been to good of a year work wise for me and the misses, but I dont think people want to hear about things like that, so ill not boar anyone with it. Iam getting sellted into a great little company and things are, I hope turning around slowly.

If I could help in any way, with what I dont know just let us know. PM us anytime. Sterling effort mate and one which I have full admerration of.

[valleyforge1]

Heres a look at the Scannys Iam driving know. Not brilliant with the small cabs to live in all week and abit cramped, but beggers cant be choosers. The mid cab would be better.

The system at our place is not how long you have been there it is how tdy you keep your cab. You can be away all week and roll in on saturday morning but if your cab is not clean you will have to clean it. Mine is about as clean as a V reg can get. Ive driven wagans alot younger than this but I think this one I have at the moment is probably the cleaness I have ever had.

[valleyforge1]

And another venture.

[Scanny]

the bigger companies wouldnt consider a sub contracted driver. thats why i am going for small companies and possibly sub contracters as they are limited by tacho regs. their truck isnt making money if it isnt working!
start up costs are virtually zero as i have almost everything i need anyway. i invested in proper work clothes last year as the competition was strong even with agencies. i have always thought of personal reputation being as important, if not more so than the agencies so i smartened up. some companies like to show a good image and dirty jeans with a greasy hiviz vest just doesnt cut it with me. under my trading name i have the words 'professional driver, professional standards' and i intend to live up to that as my biggest selling point. there is competition but i have a few aces up my sleeve.
1. i know the people i am selling to and my main target is ex army so we have an immediate bond although i dont think he is the decision maker but a good word cant hurt.
2. i know what the competition are charging. the figure i was after is below theirs anyway and i wont be charging a premium for weekends or bank holidays as my rate is close to a saturday rate for most drivers anyway. i want to earn a living, not rip people off or get greedy and the magic number i would like to earn every week is easily achievable with the kind of hours i will be working and then some which leaves a few days every month to do a cheap job for someone else which should keep HMRC off my back.
3. flexibility. i have no ties so i can work any day of the year at virtually no notice which leads on to the level of customer service that i intend to provide. i want to be the first driver they phone when they need a driver because they know that i will not let them down. im still a soldier at heart so when the phone goes i drop everything and go. agency work has maintained that mentality and discipline anyway, especially during quiet periods when you cant afford to pick and choose. sadly that is the reality for a lot of drivers just now and not just on agency work

[bradc]

Interesting, over here it was 44t and 20 metres until May this year when it went to 53t and 22 metres. All of the trucks I linked to above would be capable of carrying only 44t over here. The way our taxes are done is that the more axles you have the cheaper it is.

[Scanny]

thats the bank sorted out. i should have an account by next friday! i knew i was getting free legal support and services but i didnt realise just how far it went. the contracts have been a sore point as i dont know where to begin. now all i need to do is fill in a questionnaire and a legal team will send the terms and conditions to me tailored for my specific business.
plus i have £500 worth of business software and a distance learning package which will train me to sit the european computer driving licence test. and i have an online backup facility to securely store my business files to protect my business against my computer hardware failing
no bank charges for 18 months but the account will cost me £20 a month for a minimum of 12 months which i think is very reasonable considering what is provided.

[Rambaud]

Seems to be progressing quite well?

The contracts are very important - they will form the basis of whether your are self-employed (Contract for Services) or an employee (Contract of Service). However, mere labeling or assertion cannot turn one into another, even if both parties agree.

[Scanny]

there has been a hiccup. i cant afford to go for a full month before my first payment so i will need to stick to agencies for a while but i will still make more money than i currently do and it should only take a few weeks to build up a bit of cash in the business account which will allow me to do some work for the client i am specifically targetting. i will need to speak to that accountant about what counts as expenses though and how i go about moving a night out allowance (tax free) from business account to personal account without the tax man getting his hands on it. hopefully it will be as simple as having it listed on an invoice but i dont know yet. i want to ask about the car too. whether or not it would be worth transferring the car to the business or whether i would be better off keeping it private. i dont suppose i would get any discount on fuel but i am looking at a company fuel card with ESSO

[Rambaud]

Subsistence type allowances is one area where an employee can be better off compared to self-employed. That does not mean that one cannot claim, merely the expenditure has to be incurred and then claimed in the business accounts.

All motor expenses (fuel, insurance, finance, repairs, capital allowance etc) can be claimed but a restriction must be made for any private use. For those whose turnover is below the VAT threshold (currently £70,000), the HMRC approved rates for business miles of 40p for the first 10,000 miles and 25p thereafter plus finance interest can be used instead.

[Robotnik123]

I imagine another thing that makes UK lorries different in design is that they are speed governed to 56mph (90km/h), so maybe less need for a very powerful vehicle.