Food shortages, petrol crisis, the last few months in the UK have been challenging for a number of Brits. A lot of the recent issues are down to a shortage of HGV drivers. It’s estimated that Britain needs an additional 100,000 drivers to ease pressures.
The COVID-19 pandemic and Brexit are being blamed for the shortage of drivers. However, new research from the Road Haulage Association (RHA) reveals that recent tax changes could partly be to blame.
For those that aren’t familiar with it, IR35 rules were changed in April 2021. This made large and medium-sized private sector companies responsible for judging a contractor’s IR35 status. Previously, the contractor themselves were able to make this decision.
There is suggestion that some private sector companies responsible for these decisions are lacking the resources and experiences to get this correct.
It’s thought that most HGV drivers will be caught out by IR35 rules. Effectively, this means that it’s no longer worthwhile to operate through a limited personal service company (PSC).
For these drivers, working through an umbrella company is a simpler, more attractive alternative.
At ePayMe our state-of-the-art payroll software is directly linked with HMRC in Real Time. This gives contractors the assurance that tax, National Insurance, and business incurred expenses are kept up to date and compliant at all times.
If you’re a contractor and would like to register with us, please don’t hesitate to contact our Customer Services team to see how we can help. We have a range of products that enable us to
Call us today on 01252 863 700.
Source: Umbrella.co.uk