Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

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VasBrood
Posts: 3
Joined: Tue Apr 25, 2023 2:40 pm

Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by VasBrood »

Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company or work as a sole trader. My concerns are when they ask for the financial part of £8000 for the first lorry and I have to show the availability of the money, either in cash or credit card, I can use my personal bank account or If I have an LTD will have to show money in the business account?
Hope someone can help me! Thanks
RicMatter
Posts: 12
Joined: Wed Apr 19, 2023 10:08 am

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by RicMatter »

Have a letter saying as a director you can make sufficient funds available to the company. Beware if its a joint personal account your mrs will have to do oath in front of a solicitor to confirm her wish (as we did). Remember too, you can't change entity on o licence ie go ltd later with same licence
adrMind
Posts: 43
Joined: Wed Apr 19, 2023 10:12 am

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by adrMind »

RicMatter wrote: Tue Apr 25, 2023 2:42 pm Have a letter saying as a director you can make sufficient funds available to the company. Beware if its a joint personal account your mrs will have to do oath in front of a solicitor to confirm her wish (as we did). Remember too, you can't change entity on o licence ie go ltd later with same licence
You can, but nothing can change apart from sticking *LTD* on the end, I've done it in the past, but you need to trawl through the regulations like a forensic lawyer to find the *clause *...... I'd be a little less entrepreneurial at the moment and wait awhile until everything is back to normal (ish)..... IMO 🤔
Iaformon
Posts: 17
Joined: Wed Apr 19, 2023 10:23 am

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by Iaformon »

Personally if I was doing it I would go Ltd all the way, not to prove funds etc but mainly due to the liability risks if the business goes tits up and the fact that you can sell an Ltd business but not a business in your own name.
Remember an Ltd business is it's own legal entity.
Any of your own personal money put into the business should be in the form of a directors loan, that way when you take it out in the future you will not be taxed on it as income from the business etc. Also you can apply a good interest rate to the business loan which is way higher than you will get from a savings bank account.
If the company did go bust you would of course lose the loan as you would just be another creditor to the business even as a director.
thrmeden01
Posts: 13
Joined: Wed Apr 19, 2023 10:37 am

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by thrmeden01 »

Iaformon wrote: Tue Apr 25, 2023 2:43 pm Personally if I was doing it I would go Ltd all the way, not to prove funds etc but mainly due to the liability risks if the business goes tits up and the fact that you can sell an Ltd business but not a business in your own name.
Remember an Ltd business is it's own legal entity.
Any of your own personal money put into the business should be in the form of a directors loan, that way when you take it out in the future you will not be taxed on it as income from the business etc. Also you can apply a good interest rate to the business loan which is way higher than you will get from a savings bank account.
If the company did go bust you would of course lose the loan as you would just be another creditor to the business even as a director.
if it did go tits up and you were owing money,the can take you to court and the ltd status removed and go after your assets
Iaformon
Posts: 17
Joined: Wed Apr 19, 2023 10:23 am

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by Iaformon »

thrmeden01 wrote: Tue Apr 25, 2023 2:43 pm
Iaformon wrote: Tue Apr 25, 2023 2:43 pm Personally if I was doing it I would go Ltd all the way, not to prove funds etc but mainly due to the liability risks if the business goes tits up and the fact that you can sell an Ltd business but not a business in your own name.
Remember an Ltd business is it's own legal entity.
Any of your own personal money put into the business should be in the form of a directors loan, that way when you take it out in the future you will not be taxed on it as income from the business etc. Also you can apply a good interest rate to the business loan which is way higher than you will get from a savings bank account.
If the company did go bust you would of course lose the loan as you would just be another creditor to the business even as a director.
if it did go tits up and you were owing money,the can take you to court and the ltd status removed and go after your assets
are you sure about this?
The limited stands for limited liability, as long as you haven't given any personal guarantors for business things you should be fine.
VasBrood
Posts: 3
Joined: Tue Apr 25, 2023 2:40 pm

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by VasBrood »

Thanks everyone for the answer! Me and my Mrs don't have a joint account is all on my name but If I start as an LTD and put my personal money in money to prove I have the £8000 which they ask for the licence application will they be considered as income in the company and get taxed? This is what I understood from the first answer..what If I just show them my personal account? Where all money are and credit cards..I won't be able to apply as ltd I believe.
GreGreed
Posts: 40
Joined: Wed Apr 19, 2023 10:49 am

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by GreGreed »

Not being funny but £8k. should be the minimum available all the time unless you got about £25 _£30k available don't bother you need running money before if your lucky you get paid most companies pay week 1 work in week 7
ChrLogic
Posts: 29
Joined: Wed Apr 19, 2023 11:06 am

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by ChrLogic »

Send the money from your personal bank account to the business back account as DIRECTOR LOAN. Leave them there for 28 days, then apply for O-licence.
Anyway, you'll have to forget these 8K. You can't touch them, only on emergencies, but you'll have to make sure that the average over every 3 months is above 8K.
Take in mind the costs to operate for at least 2-3 months. Fuel, maintenance, wages, transport manager, yard fees, tacho downloader, tacho analysis subscription etc. Don't rely on these 8K.
ChrLogic
Posts: 29
Joined: Wed Apr 19, 2023 11:06 am

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by ChrLogic »

Another mention. Do not put anything at the reference when you make the transfer. Leave it blank.
indengo25
Posts: 31
Joined: Wed Apr 19, 2023 11:08 am

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by indengo25 »

You will need at least double that you may not get paid for 45/60 or even 90 days so if 8 k is all you have don’t bother it’s not enough sorry
ConHart
Posts: 46
Joined: Wed Apr 19, 2023 11:11 am

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by ConHart »

indengo25 wrote: Tue Apr 25, 2023 2:47 pm You will need at least double that you may not get paid for 45/60 or even 90 days so if 8 k is all you have don’t bother it’s not enough sorry
8K supposed to sit in a bank all the time. That is not money for diesel or pay to the driver. They can check it any time if you have that amount. If you do not, they can suspended your O license.
marKnight
Posts: 10
Joined: Wed Apr 19, 2023 11:20 am

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by marKnight »

ConHart wrote: Tue Apr 25, 2023 2:47 pm
indengo25 wrote: Tue Apr 25, 2023 2:47 pm You will need at least double that you may not get paid for 45/60 or even 90 days so if 8 k is all you have don’t bother it’s not enough sorry
8K supposed to sit in a bank all the time. That is not money for diesel or pay to the driver. They can check it any time if you have that amount. If you do not, they can suspended your O license.
you can use a credit card to show financial standing
indengo25
Posts: 31
Joined: Wed Apr 19, 2023 11:08 am

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by indengo25 »

marKnight wrote: Tue Apr 25, 2023 2:47 pm
ConHart wrote: Tue Apr 25, 2023 2:47 pm
indengo25 wrote: Tue Apr 25, 2023 2:47 pm You will need at least double that you may not get paid for 45/60 or even 90 days so if 8 k is all you have don’t bother it’s not enough sorry
8K supposed to sit in a bank all the time. That is not money for diesel or pay to the driver. They can check it any time if you have that amount. If you do not, they can suspended your O license.
you can use a credit card to show financial standing
never start a haulage business with credit you are instantly in debt
marKnight
Posts: 10
Joined: Wed Apr 19, 2023 11:20 am

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by marKnight »

indengo25 wrote: Tue Apr 25, 2023 2:48 pm
marKnight wrote: Tue Apr 25, 2023 2:47 pm
ConHart wrote: Tue Apr 25, 2023 2:47 pm

8K supposed to sit in a bank all the time. That is not money for diesel or pay to the driver. They can check it any time if you have that amount. If you do not, they can suspended your O license.
you can use a credit card to show financial standing
never start a haulage business with credit you are instantly in debt
it’s only to show financial standing lol never use the credit card but just means you always have the funds “available”
eugitem98
Posts: 6
Joined: Wed Apr 19, 2023 1:11 pm

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by eugitem98 »

LTD + Business account is a must
ProRaven
Posts: 3
Joined: Tue Apr 25, 2023 2:50 pm

Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company

Post by ProRaven »

Hi if you need a competitive finance quote on your initial trucks and trailers please get in touch.
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