HGV driver business

By : Forum Member
Published 31st January 2017 |
Read latest comment - 2nd February 2017

Hello all,

I am a newly qualified HGV driver and are looking to progress in the industry in a way that very few do. Most newly qualified drivers will obtain driving work through an agency and progress their careers from there, as I will initially. However I have the intention of creating a business eventually as a haulage operator, running one truck to begin with which will be myself driving.

I would like some advice on how I can start the business and initially offer my services as a driver under my company name. I am informed that haulage companies looking for drivers prefer this approach to recruitment, because it avoids using agencies and paying high hourly wages, for often poor standards of drivers. As i am representing my own company name as a driver, naturally I will want to provide a company who uses me with high standards and this is why companies prefer this approach.

Additionally, being your own company gives you the opportunity to negotiate your wages, which can be better than agency pay and still less than what a company would pay an agency for your services.

I have been told to create a LTD company as opposed to being a sole trader, this is to avoid any issues of liability etc, should anything go wrong whilst out on the roads such as accidents and insurance issues.

I am aware of companies house, but what is the requirements of starting the business and what forms such as tax etc will I need to begin with.

Kind regards

Kevin


hades3000
Comments

Hi Kevin, Welcome to the forums


Thanks, Rachael Kennedy
MLS Marketing Team

Hi Kevin welcome aboard.

As a former truck driver, I read your post with interest

Been a long time since I was in that game, but the reason most newly qualified drivers did agency work was to build up a track record of proven experience, as insurance was horrendous for newly qualified HGV drivers. Plus the wide ranging work of agency work could see you driving for Sainsburys one week, trunking the next and multidrop round London the next. This gave rookie drivers a wide breadth of experience.

Personally I would do the same, build up a bank of experience you can full back on, but ignore the crew room warriors and examine how the bigger firms work, what tips and tricks you can use. Look through the eyes of a business owner not a driver. They have streamlined their businesses over years of trial and error, so hoover up any nuggets or useful information you can. Get a really good idea how the industry really works and stresses and pressures on drivers and transport managers alike.

Large firms (used to, assume the same is true) like to outsource to owner drivers as it cuts down their overheads. You are responsible for running costs, insurance, breakdowns. You are a subbie rather than an employee, so have less rights and they can dump you easier when there is a downturn. Larger firms may require you to lease you the wagon in company colours, but locked under their terms.

If you are going down the road of self-employment, then you have different options which have their own pros and cons. You are right, as a Limited Company you have Limited Liability, ie you are not personally liable (unless criminally). But you then have to conform to Company House reporting rules and have responsibilities. So factor in these costs such as end of year accounts, getting an accountant to do it etc.

Sole Trader is more simple, but as you say you will be liable for any debts.

Gov.uk has a good page explaining the differences and your responsibilities: Set up a business

My fivepence worth, don't rush into a self-employment. The reality can be different form the vision. Learn your craft, do your homework. Talk to successful owner drivers and find out why they are successful. Is it the type of work, employer, vehicle, location? Weigh up all the factors then make an informed decision based on facts and not the heart.

Wish you all the best and let us know how you get on.


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

This Thread is now closed for comments