Not national and international any more its all in one course
thank you for all the advice just to clarify a couple of things I want the book as an extra study aid alongside doing a classroom learning course the operators cpc course is that the transport managers course by any chance?
I do intend to find stable work before laying down money and ensuring that it’s going to pay but on a subby basis and not my own work hence asking about the likes of BWD
where it comes to the financial side of things ( vat registered, sole trader, LTD etc) my wife deals with all of that she knows what it’s all about I asked for my own clarification and understanding of it (any business’s I had before I was sole trader and didn’t need vat registered so that side is new to me)
I’m trying to get everything in place to start the steps to becoming an owner driver and by no means going to rush in with both feet first I want to succeed in having a decent standard of living and ability to enjoy my work I’m not doing this to have an all out top end truck with all the toys and millions in the bank yacht mansion etc
Wife will be doing accounts invoicing vat returns etc as thats what she is qualified to do I did think that having her as a transport manager would be a good idea but as said questions from vosa etc it may be better for me to do it
so far my understanding is
Establish work on a subby basis ie speak to companies offering this work see what they are offering get an outline of payment terms, mileage covered and and pay structure ppm per day per job etc
I need to do the transport managers course this is a fee of £1000 for the exam I also need to find classroom lessons and could do with the book as a study aid
I need for operators license a operations centre suitable for both unit and trailer and able to enter and exit in forward gears, also need a servicing contract with an established mechanic,to advertise in local paper in area where operations center will be, financial standings of £7,700 in bank available for first unit to be in name of trading company
A business plan for a projected 3 years
to register business whether it be as sole trader or a LTD company and also become vat registered
have a contingency of roughly 10k for first 3 months of work ( this is to be used for fuel repairs wages etc)
have a deposit of about 5k for deposit for the truck
if i’ve missed things out or not being realistic in these figures/steps etc I would appreciate any help you guys can give it is very much appreciated
If you buy a truck on finance then you’ll have to pay the VAT as it can’t be built into the finance deal, so time registering for VAT so you don’t have to wait too long to get it back. Also you’ll use far more than £10k on fuel alone in three months.
Here’s a past paper you need to look at the questions in conjunction with the case study.
ocr.org.uk/Images/140840-que … 2-june.pdf
ocr.org.uk/Images/140841-cas … 2-june.pdf
This is generally what they are like but actually December’s I would say is a bit trickier. It all depends how you are at learning and remembering stuff like this. It’s mostly all irrelevant ■■■■■■■■, apart from the stuff most people would know anyway, you can forget the instant you get the certificate.
If you don’t already have a functional understanding of drivers hours and things like defect reporting you may struggle more but, to be honest, if you haven’t I would say you need more experience under your belt, ideally with a smaller operator, before considering going it alone.
kr79:
Not national and international any more its all in one course
I think this is probably why the December one seems trickier.
It might be unrealistic in the OP’s case but it’s conventional wisdom you need to pay for a course and it isn’t always necessary and there has never been so much information to assist out there.
dee to give you a little idea of what happens when you take on a job, lets say you pick up your load tomorrow 10/02/14 and deliver it on tues 11/02/14, paperwork all correctly signed and returned to your wife for invoicing. most people do their invoicing en masse for all jobs that week at the weekend, ok its now sun 14/02/14. now the fun begins (not) your customer will receive this approx on 16/02/14, now if he pays 60 days from invoice date then you will get paid on the 16/04/14 or even worse if its 60 days from the end of invoiced month you will then get paid sometime in MAY!!!. this is also assuming the customer sticks TO HIS payment terms, cos be aware MANY TIMES THEY DONT, 60 days is normal, but your diesel bill will be owing every week or 10 days, what im really saying to you is when your starting out CASHFLOW is the number 1 priority, if you aint got no cash you cant run and grow your business, so this little piece of advice is your starter for 10 “lol” and the list of pitfalls is endless, good luck and give it a go 
Yes, I’m on “30 days end of month” which is fairly standard I’d say.
So I started on 1st July 2012 and received payment for July’s work on 1st September, nine weeks later. I use about 900 litres of diesel a week, so I’d had to pay for 8,100 litres of diesel before I got paid. Also, in the first two months I needed an alternator and tensioners, which was about £1,000, two tyres, about £700, three months’ advance yard rental, £500, an inspection at £145, a digicard downloader at £200, the O licence was about £800, the list just goes on and on. And I also needed to have £16,100 in the bank after paying all of that (I have a 3 vehicle licence), the TC will want to see your second months’ bank statements
I make a reasonable living at it, and I’m sure you could too, but you do need to have a lot of money to burn when you start up or you’ll just shudder to a halt fairly quickly.
Harry Monk:
If you buy a truck on finance then you’ll have to pay the VAT as it can’t be built into the finance deal, so time registering for VAT so you don’t have to wait too long to get it back. Also you’ll use far more than £10k on fuel alone in three months.
depends on the deal you have Harry, i pay the VAT monthly on all my trucks 
shuttlespanker:
depends on the deal you have Harry, i pay the VAT monthly on all my trucks
Ah, ok, fair enough my understanding is that you can do that on lease-hire but not outright purchase.
But then that just opens another kettle of fish as to whether it’s better to buy new, secondhand, or to lease a truck, new or secondhand, there really isn’t a “one size fits all” answer to that. 
If money is tight, why not start with something smaller, a van or a 7.5tonner for instance?
It will give you a good insight into becoming a businessman and show you how to budget.
I would not recommended any of the quick pay fuel card supplied companies, there is a living to be earned, but you will be the last on the list for the cream work and once you get stuck in that rut you will find it next to impossible to get out of it as you will have no cashflow.
All things considered, starting with a small vehicle is the way to go, you’ll most likely earn more than you could with an artic too!
If you go for a van make sure you have work before parting with any money as its more cutthroat than hgv work
A very interesting post & a subject close to my heart, I too find myself in the same situation as Dee, so have read all these posts & replys with interest. I must say I was impressed with how constructive and insightful the replys were, which makes a pleasant change for what can sometime be a very cynical/negative site so harry,shuttle etc well done. From my experience of running a business in a previous life, Cashflow is probably the most important thing with a new venture, as someone pointed out if you dont have the money to buy fuel & your mortgage is due in two days then your fekked!!!
As someone said in an earlier reply, BETTER TO REGRET THE THINGS YOU’VE DONE THAN THE THINGS YOU HAVEN’T !!! Good luck to you Dee 
For “o” Licence I would recommend starting as a sole trader, this means that for the financial requirements of £7400.00 for you first vehicle and then £4100.00 for every additional vehicle you can use your own finances, ie credit cards in your own name.
If you apply for “O” Licence as a LTD company you can only use finances in the LTD company name to get licensed.
The forms are easy to fill in, Do your CPC, advertise your operating center, (best to use a premises that already has truck operating), get your maintenance contractor sorted, 3 months credit card statements showing funds available to the correct amount, follow the instructions in the GV74 guide and send them of and wait.
If you have followed all the correct procedures and financial standing you could have license granted in 9 to 10 weeks.
Get it wrong and it could take 6 to 12 months and a public inquiry, VOSA dont tend to pay you a visit these days, so you probably wont see VOSA until you do wrong, they will invite you to a new operators seminar which you must attend.
Follow your dream, best of luck, its tough out there!
alanjblack:
VOSA dont tend to pay you a visit these days, so you probably wont see VOSA until you do wrong, they will invite you to a new operators seminar which you must attend.
I was told that VOSA would make a site visit once I had become established, and they did, about 8 months after I started. They checked what systems I had in place for compliance. Didn’t have to attend the new operator’s seminar though, although it was offered. Perhaps it depends on which area you are in?
Here’s their checksheet, luckily they went away happy and so I went “green light” on the OCRS.
Yes I think it depends on area, thats one thing VOSA are not, consistent.
I got my “o” license in 1980 but the company I now work for as TM got their’s
in 2010, had seminar about 6 months into license, never had a visit yet.
Have been to 3 public enquirers over the years, not a pleasant experience if you’ve
been a in trouble.
VOSA did phone me after I had started operating to tell me there was a new operator’s seminar coming up and would I like to go? But it was on a Wednesday. I said “do you ever do seminars nearer the weekend, Wednesdays are a bit awkward for me?”
He said “no, only Wednesdays, don’t worry about it then”.
I said “will it count against me though if I don’t attend?”
He said, “no, not at all”.
Might just be different Traffic Areas (I’m in south east and metropolitan), or policy has changed before or since, like you say VOSA are not consistent but there was certainly no obligation to attend the seminar.
When it comes to 6 week checks is it posible to schedule these for a saturday morning instead of loosing a day during the working week??
DT@Leightonhaul:
When it comes to 6 week checks is it posible to schedule these for a saturday morning instead of loosing a day during the working week??
Yes, that’s exactly what I do, there is a Renault main dealership in my operating centre and when my truck is due for inspection I just leave it with them on Friday evening/ Saturday morning, and then pick it up all done on Monday morning. My inspection costs around £145 inc VAT and that’s pretty much the going rate but even if it was £20-30 more than an independent fitter, then the cost saving wouldn’t be worth the downtime. Most independent fitters are already very busy on Saturdays with existing customers, and often only work a half-day on Saturday too.
Harry
Renault quoted me £155 + vat a month to cover inspections paid by D/D.
That is £1860.00 +vat a year, yours will cost about £1256.66 inc vat.
Think I better talk to them again, see what you get for £155.00 a month, if it includes servicing
it may be worth it.
alanjblack:
HarryRenault quoted me £155 + vat a month to cover inspections paid by D/D.
That is £1860.00 +vat a year, yours will cost about £1256.66 inc vat.
Think I better talk to them again, see what you get for £155.00 a month, if it includes servicing
it may be worth it.
I think it may well be worth it, and it’s prompted me to have a chat with my dealer this week, I’ve heard about that deal before and I seem to remember that it covers the cost of the MOT prep too.