Enhanced Driver Agreement

Is based on a Fee Payer model where HGV Driver Payment Solutions Limited enters the labour chain. We work closely with agencies and hirers to provide a legal and compliant workforce. The model ensures that each driver would reach our enhanced driver status – which means that the hirer can be confident the worker that delivers the services has registered onto the portal for compliance monitoring purposes.

By entering the contractual chain, the fee-paying business can indicate whether thecontractor is compliantly operating in or outside of IR35.

If the determination is that the enhanced driver is deemed to be within IR35 ie notcompliant with the enhanced driver model then they will be paid net as payroll taxes. Asmost enhanced drivers will be deemed outside of IR35, they will receive their grosspayment minus £10 + VAT which gives them access to the app and compliance features.

What is an Enhanced Driver?

Compliant – Has his own Limited Company set up and is of good standing
Registered with HMRC and up to date with Corporation Tax and PAYE Scheme
Has a Business to Business Contract relationship established

 

No SDC in road haulage

 

No mutual obligation to future work

 

Full unfettered right of substitution

 

Demonstrates he is trading as a genuine LTD Company:

  • Public Liability Insurance
  • Business Bank Account
  • Costs and expenses incurred arenoted
  • PAYE Scheme in place training and medicals are up to date

What is the DriversMate Portal?

The DriversMate Portal is an app and platform enabling drivers to communicate with all intermediaries and improving overall supply chain compliance.

The app is a ‘one-stop shop’ for drivers and agencies alike regarding IR35 compliance and
determinations. Our primary function is to assist recruitment companies provide a safe, legal, and compliant methodology to retain and utilise a PSC labour resource

Features of the DriversMate App For Drivers

  • Driver Profiles – All documents are uploaded and kept in one place
  • CEST Determination – The HMRC Tool which is uploaded to the driver profile
  • Timesheet Functionality – Drivers input their hours, breaks, expenses, and vehicle checks in one place to submit directly to their agency or accountant
  • Weekly Remittances – Uploaded directly to the drivers’ portal and for them to send to their accountant
  • Monthly Expenses Form – Expenses form template to record their monthly expenditures to send directly to their accountants
  • Substitution – In a B2B relationship, if a driver cannot fulfill their contractual obligations, they can request a substitute from a global pool of drivers to complete the job.
  • Job Features – Agencies can post jobs directly to their drivers in their pool
  • Future Work – Agencies can post jobs on a global board to recruit drivers not assigned in a pool
  • IR35 Traffic Light System – A visual guide when a driver logs in to our portal.
  • Ability to purchase PLI, CPC Courses and set up Bank Accounts with approved partners

Features of the DriversMate App For Agencies

  • Cloud-hosted web portal to manage their assigned pool of drivers who operate outside of IR35 ‘
  • “Assigned pool” of drivers who are providing their driving services via their  LTD/PSC Companies
  • Profile view of drivers in their pool to ensure due diligence is complete
  • Jobs posted by the drivers who are in the hirers assigned pool (for substitution)
  • Facility to approve and reject the
    substituted driver timesheets can be downloaded to generate the weekly pay file
  • Ability to post jobs within a global pool of 2500 drivers to build their pool
  • Assign and allocate shifts from a driver’s availability
  • Log and demonstrate to Hirers that infringements have been logged and dealt with

Together with the enhanced driver module and the DriversMate portal and app, the end hirer is assured due diligence has been taken to determine the IR35 status of a LTD Driver and can deliver a SDS safe in the knowledge that all care and steps have been taken to assure the following:

 

  • There is no mutuality of obligations between Driver and Hirers
  • Under standard REC Terms (Contract 4b) substitution is permitted by the Hirer
  • The driver incurs costs before the assignment that are not directly recovered from the hirer (insurance, safety wear, cpc training to name but a few)
  • The driver has considerable risks in not being paid for work complete if not ‘up to scratch’
  • A B2B contract is formed between the Driver and Hirer

Interaction within Enhanced Driver Model

Step 1

The driver is enrolled on to our platform and compliance audited

The Driver is enrolled and their compliance is audited. The portal indicates their IR35 score and if inside they will be notified that payments will be made net of full PAYE deductions for income tax and national insurance contributions.

Step 2

The Fee payer, HGV DPS, or the Hirer makes the payment to the driver

When HGV Driver PaymentsSolutions makes the payment, the PC is paid Gross less a processing fee if deemed to be compliant and outside of IR35Paid NET of employment taxes if deemed inside IR35If the hirer is the fee payer, they can access the compliance report and pay the PSC gross, minus the processing fee, if deemed compliant and outside IR35.

Step 3

The driver receives a certificate of compliance only after an audit confirms they have paid themselves correctly. This will be supplemented by CEST and SDS

If the driver uses HGV Driver Accountancy, they will receive a standard remittance. If using a third-party accountant, they must provide a Corporation Tax UTR and PAYE Reference number, confirm they are paying taxes for compliance, and are paying themselves at least the NLW to be paid gross.

Substitution – Case in Three Steps

Step 1

Driver undertakes a job for days 1-3

The job is 5 days. The driver has a two-day hospital appointment on days 4 and 5

Step 2

The driver requests a substitute on the app from either a local or global pool of drivers

This job is approved by the agency, the driver is notified, the substitute is notified work is done by the substitute and is evidenced by digital tachography

Step 3

The original driver is paid to then pay the substitutes invoice and the process is completed

The substitute driver invoices the original The hirer pays the original driver the original driver then pays the substitute.

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