Potential new operator in removal industry

Hi All,

I own a removal company and operate 3.5t vans, i keep considering getting into the world of 7.5t or above due to the weight of furniture and boxes.

I dont currently have a HGV licence nor operators licence, what is the best way of getting a taste of running a lorry and seeing if it works for us before going the whole hog and me doing my test and getting the operating licence etc?

Buying the lorry isnt a problem, but can another company have the lorry under their name and i simply hire a driver as and when I need the lorry?

Any help or advice would be great.

Thank you, Ben.

Hi Ben and welcome, personally I think you would be on very sticky ground doing what you are proposing, an O licence is normally under the control of the holder and what you are suggesting sounds like lending it out, which is a big no-no.

You can buy a lorry that someone else operates for you but you need to make sure that they are, for all intents and purposes, truly operating it. You can have them cross invoice you for them ‘hiring or leasing’ your lorry. Lot’s of manufacturers, for example, have other companies operate their kit like trailers. You driver will really need to work for them on a self-employed basis as a paperwork exercise.

What you need to avoid is you buying a lorry, not bothering with maintenance or drivers hours whilst its reg no just sits on someone else’s o-licence and you bunging them some cash on the QT for the privilege.

We had a similar question a couple of years ago. I have not managed to find a link so far. I am not nitpicking but it has to be the driver and not your driver or their driver who is self employed to satisfy HMRC.

Thank you very much for all your replies.

I want everything to be above board as we try to keep a good record.

I understand its a bit like cutting corners and I guess it creates an unfair playing field to other companies with lorries.

Ive looked at simply hiring in a lorry from another company buts its expensive and our customers simply dont want to pay it…

Thanks again.

Ben,

I would go for the O-Licence anyway. If you can’t make a 7.5t pay, then you might find you have more success with a couple of 4.5t plated vans pulling trailers. A decent van with a decent trailer should be able to get you close to 7t anyway.

Otherwise, a 12t might be a better option as it will cost not much more than a 7.5t to run but gives you a lot more space and/or payload.

Either way, an O-Licence would be needed. And if you get your TM CPC, even if you don’t run your own vehicles you can act as external TM to other companies and bring in more money that way.

MorrisRemovals:
Thank you very much for all your replies.

I want everything to be above board as we try to keep a good record.

I understand its a bit like cutting corners and I guess it creates an unfair playing field to other companies with lorries.

Ive looked at simply hiring in a lorry from another company buts its expensive and our customers simply dont want to pay it…

Thanks again.

Ben,

That seems a bit odd to me. How many repeat customers do you get for household removals each year?

If you mean that you are working the bottom end of the market on the other hand, then maybe it is time to start thinking about moving up market to cater for those for whom a Luton Transit is no where near big enough.