A Guide to Becoming a Haulage Subcontractor

The UK continues to navigate an ongoing HGV driver shortage, so the demand for drivers is still high and there isn’t a better time to embark on this new career journey.

With a good salary, the opportunity to work independently outside of a traditional office environment, and the ability to travel around the UK, becoming a haulage subcontractor has a huge number of benefits. There will always be a need for drivers as they keep the country running, helping distribute various goods and contribute to economic growth.

In the blog, discover everything you need to know about becoming a haulage subcontractor.

7 Steps to Become a Haulage Subcontractor

1. Familiarise Yourself with the Haulage Industry

If you’ve never worked within the haulage industry before, it’s a good idea to do some research before starting your new career. Take a look at the different types of haulage used and their specific requirements, the regulations and compliance that are mandatory in this sector, and local haulage companies that hire subcontractors.

Transmode are always on the lookout for haulage subcontractors we can trust! We are proud of the high standard of service we deliver to clients and seek subcontractors that will match this.

2. Obtain Your Operator’s Licence

A standard operator’s licence is required for using vehicles over 3.5 tonnes plated weight in order to carry goods in conjunction with a trade or business. To qualify for this kind of licence, you must have appropriate financial standing to run your business, suitable facilities for maintaining your vehicles, be of good repute, fit to hold a licence, and capable of obeying the rules.

To apply for a standard operator’s licence, you must complete a GV79 form which you can find here. Once completed, you must send it to the Office of the Traffic Commissioner along with the relevant fee. Make sure to apply for this at least 9 weeks before you need the licence so there is enough time for the Traffic Commissioner to make any enquiries.

3. Train for a Certificate of Professional Competence (CPC)

In order to drive a lorry, you must hold a full car licence, complete 35 hours of periodic training every 5 years to obtain and hold a CPC, also known as a Driver Qualification Card (DWC).

Whether you would like to drive nationally or internationally will have an impact on your course duration. Once completed, the training centre will then put your training on your Driver CPC training record.

You will still be able to drive professionally while waiting for your card to arrive as long as you’ve completed your periodic training or your training provider has recorded the training.

4. Organise Your Vehicles

Next, it’s time to buy or rent your HGVs! There are various ways in which you can finance the purchase of your vehicle industry including:

• Purchase it outright so you own the vehicle
• Explore different finance deals to spread the cost
• Buy it on a hire purchase
• Choose an operating lease

It’s always important to research which buying option works for you and your business before you commit. Once you’ve decided how you will purchase your vehicles and how many, you will also need to sort out a storage solution. Make sure it has safe access and is an environmentally acceptable location.

5. Find Suitable Insurance & Safety Certifications

Before you start operating as a haulage subcontractor, you’ll need to make sure you have the right insurance in place. Like all vehicles, your HGVs must be insured, but you’ll also need to consider cover for your cargo and protection against third-party claims.

The types of insurance you may need include are:

Goods in Transit Insurance

When you’re carrying goods in transit, this insurance protects the cargo you’re transporting in the event it’s lost or damaged.

Public Liability Insurance

This type of insurance is the most common; it covers claims if your work causes injury to a member of the public or damage to someone else’s property.

Employer’s Liability Insurance 

This insurance is a legal requirement if you employ staff, protecting you against claims made by employees who become ill or injured while working.

Vehicle Insurance

It ensures your HGV is appropriately covered for commercial use.

Having the correct insurance doesn’t just protect your business financially, it also demonstrates to customers that you’re a professional and reliable subcontractor. Many haulage companies will expect you to have suitable insurance before offering you work.

Insurance can also provide valuable protection by:

Covering Cargo Damage

If goods are accidentally damaged, lost or stolen while you’re transporting them, insurance can help cover the cost of repair or replacement.

Protecting Against Third-Party Claims

If an accident results in injury or damage to another person or their property, the appropriate insurance can help cover compensation costs.

Helping With Legal Expenses

If legal action is taken against you following an accident, some insurance policies can help cover legal fees and defence costs.

Meeting Client Requirements

Many customers and haulage companies require subcontractors to have appropriate insurance before they’ll award contracts, making the right cover essential for securing work.

Finally, don’t forget about safety certifications. If you’ll be transporting hazardous or perishable goods, you may need specialist training or additional certifications before you begin operating.

6. Register for Self-Assessment

Once you’ve set up your business, you’ll need to register as self-employed with HMRC and complete Self-Assessment tax returns each year. This allows you to report your income, claim allowable business expenses and pay the correct amount of Income Tax and National Insurance.

As a haulage subcontractor, you’ll also need to ensure your business is set up to operate efficiently and remain compliant. This may include opening a dedicated business bank account and registering for VAT if your taxable turnover exceeds the VAT registration threshold.

As a self-employed HGV driver, you’ll be responsible for:

• Expenses: You must keep a record of all your business expenses and receipts.
• Accounts: Your accounts must be in order and up to date.
• Invoices & Payment Terms: Invoices must be created with your payment details and terms and sent off promptly.
• Taxes: You must manage your National Insurance contributions, VAT payments and file your tax returns accordingly.

As your business grows, it’s also important to stay up to date with industry legislation and best practices. This includes complying with drivers’ hours regulations, vehicle maintenance requirements and environmental standards, while making the most of technology such as GPS tracking, route planning software and fleet management tools to improve efficiency.

Become a Haulage Subcontractor for Transmode

Becoming a haulage subcontractor is an excellent way to build a flexible and rewarding career, but success starts with having the right licences, insurance and business setup in place. By following these steps, you’ll be well prepared to start operating confidently and compliantly.

If you’re looking for subcontractor opportunities, Transmode works with experienced and reliable drivers across the UK. Get in touch with Transmode today to learn more about becoming one of our trusted haulage subcontractors.