crunch guide to being self employed hermes | Self Assessment Webinar and Q&A for Hermes

Becoming a Hermes (now Evri) courier can be an attractive option for those seeking flexibility and control over their working hours. However, stepping into the world of self-employment also means navigating the complexities of taxes, accounting, and running your own business. This guide, powered by Crunch, aims to provide a comprehensive roadmap for Hermes couriers, covering everything from setting up your business to filing your self-assessment.

The Allure and Realities of Self-Employment as a Hermes Courier

The promise of being your own boss is undeniably appealing. As a Hermes courier, you have the potential to set your own hours, work around your family commitments, and determine your own earning potential. However, it's crucial to understand the responsibilities that come with self-employment. You are responsible for managing your finances, paying your taxes, and ensuring you comply with all relevant regulations. Before diving in headfirst, carefully weigh the pros and cons:

Pros:

* Flexibility: Set your own hours and work around your personal commitments.

* Autonomy: Be your own boss and make your own decisions.

* Potential for Higher Earnings: Your income is directly tied to your effort and efficiency.

* Varied Work: Each day brings new routes and deliveries.

* Opportunity to be Active: A physically active job that keeps you on the move.

Cons:

* Income Fluctuations: Earnings can vary depending on demand and your availability.

* Financial Responsibility: You are responsible for managing your own finances, including taxes and expenses.

* Administrative Burden: You need to handle invoicing, record-keeping, and tax returns.

* Vehicle Maintenance: You are responsible for the upkeep and maintenance of your vehicle.

* Unpredictable Weather: Working outdoors in all weather conditions can be challenging.

* Hermes agree new ‘self-employed plus’ model: The new model has been introduced to provide couriers with more benefits, but it also changes the relationship between Hermes and its couriers.

I. The Crunch Guide to Starting Your Business: Laying the Foundationcrunch guide to being self employed hermes

Before you start making deliveries, you need to establish your business. This involves several key steps:

1. Choosing Your Business Structure:

* Sole Trader: This is the simplest business structure, where you and your business are legally the same entity. You're personally liable for all business debts. It's easy to set up and manage, making it a popular choice for self-employed individuals.

* Limited Company: This is a more complex structure where your business is a separate legal entity from you. This offers limited liability, meaning your personal assets are protected if the business incurs debts. It also offers potential tax advantages, but it requires more administrative overhead.

* Partnership: This structure is suitable if you're running the business with one or more partners. Profits and losses are shared according to the partnership agreement.

Recommendation: For most Hermes couriers starting out, operating as a sole trader is the simplest and most practical option. You can always transition to a limited company later if your business grows and your circumstances change.

2. Registering with HMRC (if necessary):

* If you choose to operate as a sole trader, you need to register with HMRC as self-employed. You can do this online through the HMRC website. You'll need your National Insurance number and other personal details.

* If you choose to operate as a limited company, you need to register your company with Companies House and HMRC. This process is more complex and may require professional assistance.

3. Setting Up a Business Bank Account:

While not legally required for sole traders, having a separate business bank account is highly recommended. It simplifies your accounting, makes it easier to track income and expenses, and provides a professional image.

4. Understanding Your Contract with Hermes (Evri):

Carefully review your contract with Hermes to understand your rights and responsibilities. Pay close attention to:

* Payment terms: How and when will you be paid?

* Service requirements: What are the delivery standards you need to meet?

* Insurance requirements: What insurance coverage do you need?

* Termination clauses: What are the conditions for ending the contract?

5. Essential Insurance:

As a Hermes courier, you'll need adequate insurance coverage to protect yourself and your business. Essential insurance policies include:

* Motor Insurance: You need business motor insurance to cover your vehicle for deliveries. Standard personal motor insurance is not sufficient.

* Public Liability Insurance: This covers you if someone is injured or their property is damaged as a result of your business activities.

* Goods in Transit Insurance: This covers the parcels you are carrying in case they are lost, stolen, or damaged.

6. Record Keeping:

Maintaining accurate records of your income and expenses is crucial for tax purposes. Use a spreadsheet, accounting software, or hire an accountant to help you track:

* Income: All payments received from Hermes.

* Expenses: Vehicle costs (fuel, maintenance, insurance), postage costs, phone bills, office supplies, and any other business-related expenses.

II. 9 Tips for Going Self-Employed: A Head Start