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The HGV driver shortage has been prominent amongst the industry for the last couple of years and isn’t set to improve in 2025, 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 away from an office job 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 help keep the country running, helping distribute various goods and contribute to economic growth.

So, how do you become a haulage subcontractor? Here’s everything you need to know.

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 subcontractors we can trust! We are proud of the high standard of service we deliver to clients and seek subcontractors that will match this. Find out more information here.

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 and 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). Training courses can be found here and 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 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

Like all vehicles, your HGVs must be insured and this policy must cover the vehicle, cargo and third-party liability; cargo must also be covered by goods in transit insurance. Public liability insurance will protect you against claims for damage to property or injury and, if you have employees, you will need employer’s liability insurance.

There are many different levels of cover, so if you need help choosing suitable insurance for your vehicles and owner drivers, get in touch with Transmode who can offer expert advice and guidance.

Another thing you must be aware of is safety certifications. If you are transporting hazardous or perishable materials, you may need specialised safety training and certifications before you begin operating.

6. Register for Self-Assessment

As mentioned in step 1, you must have appropriate financial standing to run your business. As a business owner, you will have to formally register your business with the local government or business registrar and take on additional tasks to make sure it is operating compliantly and efficiently.

This includes setting up a business bank account and registering for VAT if your earnings exceed the VAT threshold. Self-employed HGV drivers must register for Self-Assessment with HMRC before trading; with this, there are a number of responsibilities you must be aware of:

  • 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.

It is also important you are always aware of relevant laws and regulations within the haulage and logistics industry, such as driver hours and environmental regulations. Technology is always evolving too, with GPS tracking and other management tools which can help your subcontracting business operate more efficiently.

7. Set Your Haulage Subcontractor Rates

Once all these steps have been completed, it’s time to set your rates. You must take into consideration fuel costs, vehicle maintenance and additional services and it’s typical for subcontractors to be paid per mile or per load.

When this has been decided, you should start your search for subcontracting opportunities. It’s common for larger logistics companies to hire subcontractors, so take a look at a local network to see if there are any opportunities in your area.

Become a Haulage Subcontractor for Transmode

For further help and advice, you can visit Trucknet UK and Road Haulage Association. Once you have completed the steps in this article, visit our Subcontractor page where you can explore our resources and find out more how you can start a haulage contract with Transmode.

Get in touch with us today by calling 01394 675635 or filling out our contact form.

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