Im looking to open a limited company so I can work with companies, once I pass my exams?! Are there any recomendations

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EA117
Posts: 3
Joined: Mon May 31, 2021 4:14 am

Im looking to open a limited company so I can work with companies, once I pass my exams?! Are there any recomendations

Post by EA117 »

Hey there guys, Im looking to open a limited company so I can work with companies, once I pass my exams?!
Are there any recomendations people can give me regarding such matter?
Thank you in advance!🙂
kevm14
Posts: 45
Joined: Sat May 29, 2021 4:38 pm

Re: Im looking to open a limited company so I can work with companies, once I pass my exams?! Are there any recomendatio

Post by kevm14 »

You dont need a limited company to be an External Transport Manager. Traffic Commissioners prefer you to be a sole trader.
EA117
Posts: 3
Joined: Mon May 31, 2021 4:14 am

Re: Im looking to open a limited company so I can work with companies, once I pass my exams?! Are there any recomendatio

Post by EA117 »

kevm14 wrote: Mon May 31, 2021 4:19 am You dont need a limited company to be an External Transport Manager. Traffic Commissioners prefer you to be a sole trader.
any reason why that is or?
kevm14
Posts: 45
Joined: Sat May 29, 2021 4:38 pm

Re: Im looking to open a limited company so I can work with companies, once I pass my exams?! Are there any recomendatio

Post by kevm14 »

EA117 wrote: Mon May 31, 2021 4:20 am any reason why that is or?
Limited Company has limited liability. Traffic Commissioners want the contract to be directly between the CPC holder as an individual and the operator. That isnt to say you cant have a Ltd co for other work and be an External TM. Be aware though the TC may not accept an agreement between an operator and a Ltd co for transport manager services.
ViolaF
Posts: 20
Joined: Mon May 31, 2021 4:22 am

Re: Im looking to open a limited company so I can work with companies, once I pass my exams?! Are there any recomendatio

Post by ViolaF »

kevm14 wrote: Mon May 31, 2021 4:19 am You dont need a limited company to be an External Transport Manager. Traffic Commissioners prefer you to be a sole trader.
Sorry that information is wrong.
1 - the agreement between the TM and the operator is separate from how the TM bills the operator.
2- the TM may not be able to now work as a sole trader under IR35 rules. This differs case to case and a TM should check on the HMRC checker before setting up.
kevm14
Posts: 45
Joined: Sat May 29, 2021 4:38 pm

Re: Im looking to open a limited company so I can work with companies, once I pass my exams?! Are there any recomendatio

Post by kevm14 »

kevm14 wrote: Mon May 31, 2021 4:19 am You dont need a limited company to be an External Transport Manager. Traffic Commissioners prefer you to be a sole trader.
1 -Never said it wasnt. 2- May? Plenty of ETM's have been reviewed under IR35 and are able to continue as sole traders.
ViolaF
Posts: 20
Joined: Mon May 31, 2021 4:22 am

Re: Im looking to open a limited company so I can work with companies, once I pass my exams?! Are there any recomendatio

Post by ViolaF »

kevm14 wrote: Mon May 31, 2021 4:19 am You dont need a limited company to be an External Transport Manager. Traffic Commissioners prefer you to be a sole trader.
1 - you suggested that being sole trader is better in the eyes of the TC, that’s not true
2 - some ETM’s have been found in breach of IR35.
It’s a case in case bases.
Each TM needs to look at what work there going to do for what clients and decides the best course of action for them.
kevm14
Posts: 45
Joined: Sat May 29, 2021 4:38 pm

Re: Im looking to open a limited company so I can work with companies, once I pass my exams?! Are there any recomendatio

Post by kevm14 »

kevm14 wrote: Mon May 31, 2021 4:19 am You dont need a limited company to be an External Transport Manager. Traffic Commissioners prefer you to be a sole trader.
Calm down Rainman this isnt your interview for Facebook fact checker. You created two strawman arguments just for the sole purpose of being internet know it all of the day: 1- I never mentioned billing, you did 2- I never mentioned IR35, you did. Historically TC's have preferred employed (internal) TM's to self employed (external) TM's. Historically TC's have taken the pragmatic approach that ETM's are likely to be self employed and have favoured the Sole Trader option over the Ltd option for the reasons given. It is theoretically possible for an ETM to be PAYE on 4 different payrolls but it isnt practical or needed. There are plenty of us operating Ltd co's that have been assessed as outside of IR35. There are plenty of us working as sole traders that have been assessed as outside of IR35. If you dont agree, guess what? I am not interested and I dont imagine anyone else is either.
ViolaF
Posts: 20
Joined: Mon May 31, 2021 4:22 am

Re: Im looking to open a limited company so I can work with companies, once I pass my exams?! Are there any recomendatio

Post by ViolaF »

kevm14 wrote: Mon May 31, 2021 4:19 am You dont need a limited company to be an External Transport Manager. Traffic Commissioners prefer you to be a sole trader.
I don't really care if you agree or not... care or not....
The original post by Szilard Grusz was looking for advice and I felt yours was not 100% correct. Yes I might of brought other facts in to back up my original post.... but whats the problem in that?
Szilard has came to the page to look for advice, there is nothing stopping Szilard creating a Ltd business for his TM role, if he goes down the line of being a sole trader (self employed) then he need to double check IR35 rules.
In your case your business might be outside of IR35, but not everyone's business will be, it carries as I said before case to case.
I honestly don't think HMRC even know how to apply IR35 to every situation, but any sensible person before deciding what way to set up there business would do there research and double check.
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