Drivers caught in IR35 ruling IVOTY win for Citroen and Mercedes

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Drivers caught in IR35 ruling

As delivery companies look to take on additional staff for the seasonal rush, outsourced payroll specialist to the transport industry, HIVE360, says that many drivers working in the sector are being caught by reform to the IR35 payroll rules. Since April, truck or van drivers, along with the businesses hiring them, have had to determine their employment status.

“We’ve been working closely with a number of haulage and logistics businesses confused by the off-payroll IR35 working rules that changed in April to include private sector organisations and how some individuals pay tax,” says the company’s CEO David McCormack.

“The evidence is clear, many classifications of drivers are most certainly caught ‘inside of IR35’ and will therefore have to pay PAYE. HMRC made the changes to employment status around the time of the Budget, and some employers may have simply missed this important move.

Status

“These changes make it clear that HMRC’s opinion on the status of drivers applies to all transport providers and commercial vehicles, not just hauliers and lorries, as well as drivers of commercial vehicles that carry goods, passengers, or livestock and who only provide their labour and drive vehicles owned, maintained, and insured by contractors, who are likely to be classified as an employee and therefore definitely fall inside of the IR35 rules.

“This means PAYE is due on their earnings and must be deducted before any payment is made by the contractor to the driver.”

McCormack continued: “It is different for individuals classified by HMRC as an ‘owner-driver’ and includes those that own or lease the vehicle they supply. HMRC guidance explains these drivers are more likely to be classified as self-employed for tax purposes, and therefore outside of the IR35 off payroll working rules.

“Drivers who provide the vehicle are likely to be self-employed even if they work mainly for one business. This contradicts the examples provided for the SDC rules, so businesses should be careful if they have self-employed drivers who don't provide their own vehicle as HMRC may well challenge their employment status position.”

IVOTY win for Citroen and Mercedes

The latest Renault Kangoo and Mercedes-Benz Citan (below) have been jointly awarded the 2022 International Van of the Year trophy, while Toyota has grabbed the International Pick-up Award.

Both Kangoo and Citan will arrive in the UK next year. The Renault will be offered with petrol and diesel engines, as well as a full EV driveline, while Mercedes will offer the latest Citan in both petrol and electric models.

The latest Hilux is already on sale in the UK, following the launch of a higher-powered 2.8-litre diesel engine earlier in the year.

Plug & Go eases move to EV

Vauxhall is hoping to make the transition to electric vehicles easier for buyers with a Plug & Go package. This includes a free home charging unit, eight years’ roadside assistance and battery warranty, a free six-month BP Pulse subscription and three years’ free servicing. Customers can select the home wallbox from a choice of PodPoint Solo 3 and Hive EV Charging units.

“Vauxhall is helping to move Britain into the electric era with our Plug & Go offer that aims to remove the barriers to making the switch to electric and simplify the EV ownership experience,” said Paul Willcox, managing director, Vauxhall Motors.

“Switching to electric is now an even better choice for Vauxhall customers with an easy, allin-one package covering home and public charging, warranty, roadside assistance and servicing. Vauxhall is committed to making electric or plugin hybrid vehicle ownership as simple as possible, as we continue to progress towards becoming a 100% electric brand by 2028.”