DPD Driver Franchise

Quassi75

I’m having my business meeting on Monday and I’ll probably ask similar questions to yours, but I’m looking to go OPD for the DPD, which means franchised and will cost me £1300 initially as a startup. But good shout on asking for details on the proposed route, as living in Somerset, the deliveries could be miles apart from each other and that will eat into the profits.. will shout up after my meeting on Monday 

Dox

Danielleach21 said:

However my questions is.. they have told me to set up a ltd company and it basically goes into paying yourself a salary of £8k out of your 54k annual salary, 37k once you’ve taken costs away, 23k once you have taken away 8k salary and 20% corporation tax which is 19% 

54k

- 16k costs 
- 8k salary (paid to me)
- 5k (corporation tax) 
=£24k (Left as dividends in company) 
average annual earnings after tax £30k (Roughly).

the thing is I have no idea how to run a ltd company and am told you’re probably going to need an accountant and probably
will cost you £1500 a year and also you have to pay monthly to have a ltd company so take off another £1000. This probably leaves you about £28k 

does anybody have experience of this as my friend told me to just go sole trader and it will be much easier for me as I can just fill out a tax return each year and I can use all my money as I want, it probably means I’ll end up with about £25k instead but I’m not that fussed I’ll do another 20 stops a day if I need to and make that up no problem. 

Running a tiny limited company really isn't a big deal. See https://www.gov.uk/browse/business/setting-up for masses of info. 

I don't understand this bit: 'and also you have to pay monthly to have a ltd company so take off another £1000'. Please could you expand a bit on what exactly you mean/who you think you have to pay monthly to have a limited company? Are you referring to your own salary from the limited company (if so, HMRC'S free software does the job beautifully and you don't need to pay anyone to do it - it's a doddle).

Danielleach21

Dox said:

Danielleach21 said:

Running a tiny limited company really isn't a big deal. See browse/business/setting-up for masses of info. 

I don't understand this bit: 'and also you have to pay monthly to have a ltd company so take off another £1000'. Please could you expand a bit on what exactly you mean/who you think you have to pay monthly to have a limited company? Are you referring to your own salary from the limited company (if so, HMRC'S free software does the job beautifully and you don't need to pay anone to do it - it's a doddle).

Hi sorry, I thought somebody told me you had to pay a monthly fee to be a ltd company, this is what I mean my understanding is not great and also I believe you have to document everything, money you take out, put in, etc etc basically like doing your own accounting? 

popeye206753

Sorry to resurrect the thread again, is this worth doing in the current work climate?

WeeManMike

popeye206753 said:

Sorry to resurrect the thread again, is this worth doing in the current work climate?

I no longer work at dpd but another courier company instead and we've been busier than Christmas for the entire lockdown period. Most other couriers I've spoken to are the same. 
Non of us think it's going to get much quieter any time soon as people are preferring to order things online even more at the moment due to having to que to get into shops and/or it taking longer to look around a shop and checkout.
If there is an industry that has done very well during this lockdown it is the online shopping industry.
Even without this lockdown the online shopping industry isn't going anywhere and will only get busier.
As long as you're with any one of the big courier companies you won't be short of work for the foreseeable future.

popeye206753

WeeManMike said:

popeye206753 said:

Sorry to resurrect the thread again, is this worth doing in the current work climate?

I no longer work at dpd but another courier company instead and we've been busier than Christmas for the entire lockdown period. Most other couriers I've spoken to are the same. 
Non of us think it's going to get much quieter any time soon as people are preferring to order things online even more at the moment due to having to que to get into shops and/or it taking longer to look around a shop and checkout.
If there is an industry that has done very well during this lockdown it is the online shopping industry.
Even without this lockdown the online shopping industry isn't going anywhere and will only get busier.
As long as you're with any one of the big courier companies you won't be short of work for the foreseeable future.

its worth a punt then, having looked around online. There appears to be some disgruntled people out there. How feasible is it to make good money doing this? by that i mean a second route etc?

popeye206753

Would you recommend dpd, or not. Is the company your with now better, would you recommend them instead? 

WeeManMike

popeye206753 said:

Would you recommend dpd, or not. Is the company your with now better, would you recommend them instead? 

There will always been people who moan about any job and yet still do it. In the company I'm in now most of the moaners have been with the company for 10yrs +, that should tell you whether it pays well or not lol.
End of the day if you don't like a job, leave and find another one regardless of the industry.
If you're after more than 1 route you're looking to go the self employed way which is harder because you have to deliver everything every day to make sure you get a decent wage.
Im now employed as I disliked everything that came with being a self employed courier. I'm earning only slightly less than when I was self employed but if I bring any deliveries back undelivered it doesn't matter, I get paid holiday etc etc.
Some it suits, some it doesn't.
Its very hard physically and mentally but its a rewarding job if you're suited to it.
If you're unsure you'll soon find out lol.

LittleVoice

WeeManMike said:

popeye206753 said:

Would you recommend dpd, or not. Is the company your with now better, would you recommend them instead? 

There will always been people who moan about any job and yet still do it. In the company I'm in now most of the moaners have been with the company for 10yrs +, that should tell you whether it pays well or not lol.
End of the day if you don't like a job, leave and find another one regardless of the industry.
If you're after more than 1 route you're looking to go the self employed way which is harder because you have to deliver everything every day to make sure you get a decent wage.
Im now employed as I disliked everything that came with being a self employed courier. I'm earning only slightly less than when I was self employed but if I bring any deliveries back undelivered it doesn't matter, I get paid holiday etc etc.
Some it suits, some it doesn't.
Its very hard physically and mentally but its a rewarding job if you're suited to it.
If you're unsure you'll soon find out lol.

The thread title is about a "franchise" situation so I would assume that means being self-employed.

Perhaps a viewing of "Sorry We Missed You" (Ken Loach film) gives one perspective of the self-employment route.

WeeManMike

LittleVoice said:

WeeManMike said:

popeye206753 said:

Would you recommend dpd, or not. Is the company your with now better, would you recommend them instead? 

There will always been people who moan about any job and yet still do it. In the company I'm in now most of the moaners have been with the company for 10yrs +, that should tell you whether it pays well or not lol.
End of the day if you don't like a job, leave and find another one regardless of the industry.
If you're after more than 1 route you're looking to go the self employed way which is harder because you have to deliver everything every day to make sure you get a decent wage.
Im now employed as I disliked everything that came with being a self employed courier. I'm earning only slightly less than when I was self employed but if I bring any deliveries back undelivered it doesn't matter, I get paid holiday etc etc.
Some it suits, some it doesn't.
Its very hard physically and mentally but its a rewarding job if you're suited to it.
If you're unsure you'll soon find out lol.

The thread title is about a "franchise" situation so I would assume that means being self-employed.

Perhaps a viewing of "Sorry We Missed You" (Ken Loach film) gives one perspective of the self-employment route.

Yeah it will give you an idea, but everyone who is a courier that I've spoken to since it was released is 50/50 whether they hate it or like it.
It's not really a balanced picture of a self employed courier because I know plenty of people who are doing it and it suits their lifestyle and the money is good.
Sure it's a tough industry to start with, physically and mentally draining most days, but if you can't hack it you go the employed route or another driving role.
Sure some people's circumstances don't allow them to change jobs easily but where there is a will there is a way.

If you're able to cope with 10-12hr days that will physically and mentally whack you, but you enjoy driving, being out on the road and meeting people then it's the job for you.