Subsistence/Per-Diems | Swapping primary sponsor | Driver wage & rest

[TheFishPlate]

First post for me here, so hi all!

I've one month back completed funded training for my PTS, OLEC1 etc. I have a primary sponsor with whom I've received on average 2 shifts per week. These weren't local by any means (nice 250 mile round journeys), but they never included staying away.

I've just received an offer from another agency which I need to decide upon. I should receive between 4-6 days work per week, as a backup driver. This involves 3 nights a week away. Firstly I just wondered what some of you receive and how it is paid. I'm told it is £25 per day. However I'm not sure how it is paid; as expenses, as a tab with the hotel only, or as a £25 payment per day to me that I imagine is taxable.

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Secondly with regards to swapping sponsors: should I be looking for any documented confirmation of the amount of work 'promised', or is it typically something I just have to take a risk on and their word for? It is not PAYE, but umbrella company (oh the joys).

It's not that I desperately want to jump ship right after being trained, but I'm offered more work, £1.75 per hour more week nights, £1 more weekends, and possibly a van to take home.

Besides this, do you have any anecdotal thoughts/advice that I should consider when it comes to swapping primaries?

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Finally on driving. Has anyone worked for a company who does pay either travel time or an additional wage to the driver; do they exist?!

And driver's rest; is this a thing with every company? Do you encounter supervisor resistance to this? I understand it is 2 hours long toward the end of the shift.

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Many thanks for reading this. I've many questions as you might expect. Just trying to negotiate my way through this the early part of my rail career without ending up working for less than minimum wage and having the wool pulled over my eyes!

Cheers all.

 

[Randomer]

Not railway related per se but I would be very cautious of accepting any work from an umbrella company at the moment. You stand a good chance of HMRC coming after you in a few years time after they discover the umbrella company was doing tax avoidance and telling you otherwise (seems to especially be the case with NI contributions.) I think by the tone of your post you are probably aware of this but please be careful I know personally two people who have been stung by this in the past year. Admittedly this is much less common than 5 years ago when there were umbrella companies engaged in some very dubious tax avoidance.

Also the higher rate doesn't actually sound that great of you are having to pay employers NI (just under 14%) plus have no holiday pay. I suspect you might actually worse off in terms of hourly income but better off because of more work being given?

I don't work in a railway related profession but do spend a substantial amount of the year staying in work provided or funded accommodation. It is dependent on what exactly the subsistence payment is called along with other factors such as how far from your usual place of work you are based to decide whether the £25 is taxable. Depending on exactly how long you work and with the overnight stay it sounds about right for being part of the non taxable subsistence allowance for two meals plus an overnight stay but again this can be quite complicated.

To be clear driver referring to road vehicle? Yes outside of the railway it is claimable at an enhanced rate for some companies if not defined in the normal duties of an employee.

Hope this is of some use to you. Hopefully somebody with some more direct experience will be along to answer more succinctly.

 

[TheFishPlate]

Thanks Randomer. Appreciate your time in responding.

Not railway related per se but I would be very cautious of accepting any work from an umbrella company at the moment. You stand a good chance of HMRC coming after you in a few years time after they discover the umbrella company was doing tax avoidance and telling you otherwise (seems to especially be the case with NI contributions.) I think by the tone of your post you are probably aware of this but please be careful I know personally two people who have been stung by this in the past year. Admittedly this is much less common than 5 years ago when there were umbrella companies engaged in some very dubious tax avoidance.

Also the higher rate doesn't actually sound that great of you are having to pay employers NI (just under 14%) plus have no holiday pay. I suspect you might actually worse off in terms of hourly income but better off because of more work being given?

Just as a clarification; both my current and the offered work is through an agency/recruitment business that require their workers to be either Limited Company or using an (their preferred) umbrella company.

As it stands the umbrella company aren't professing to save me any money nor encouraging expense claims. Both NI's are indeed being siphoned from my rate. Hopefully all is above board.

Yes no holiday pay is unfortunate, but is the case for my current company also. I have zero leverage at the moment in negotiating an uplift in rate that could cover the NI 1b, holiday pay and margin. Hopefully in the future I can.

I don't work in a railway related profession but do spend a substantial amount of the year staying in work provided or funded accommodation. It is dependent on what exactly the subsistence payment is called along with other factors such as how far from your usual place of work you are based to decide whether the £25 is taxable. Depending on exactly how long you work and with the overnight stay it sounds about right for being part of the non taxable subsistence allowance for two meals plus an overnight stay but again this can be quite complicated.

Ah yes...the lovely subsistence rules on permanent or temporary places of work along with travel time etc. I will have to ask the agency more when I next talk to them.

To be clear driver referring to road vehicle? Yes outside of the railway it is claimable at an enhanced rate for some companies if not defined in the normal duties of an employee.

Yes, minibus. It is certainly the case for my current agency and I think the new one also, that there is no additional pay for the drivers. They are driving company vans, ferrying up to 6 other workers to site and can be driving 5 hours in a day without pay for that time, let alone an increased rate.

I did wonder whether this is something fairly standard in rail contracting.

Regarding the defined duties, I wouldn't be surprised if this is avoidable by arguing that it is within the normal defined duties of those that accept being a driver.

Hope this is of some use to you. Hopefully somebody with some more direct experience will be along to answer more succinctly.

Thanks again.