So you think you want to go solo
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Think it's time to go out on your own? Don't forget the 0-licence, HGV driver's licence, vehicle costs, CPC training, and if there's anything left, your wages.
Words: Christopher Walton / Images: Simon Everett CM HAS CALCULATED it costs the average owner-operator a maximum of £31.151 to set themselves up as a single vehicle business.
This staggering figure is based on cost estimates for one individuial to obtain the correct licencing, skills and financial standing in order to become an owner driver in today's economic climate.
The first thing you need is an HGV drivers' licence. Presuming you don't have one already, you are looking at between £1,000 and £1,500 for training and the test, according to the Freight Transport Association.
And don't forget your Driver CPC training, which is anything from 135 to £120 per day on a public course, and you need to complete five days to meet the 35 hours required in total. So that's another £175 to £600 you have to fork out.
So now you can drive a vehicle, there's the small matter of getting your hands on one: the Road Haulage Association (RHA) estimates that a three-month lease for a 44-tonne artic is £4,700.
But wait, there's more...
Nov,. you have a truck you can drive, you have to get the 0-licence to ensure you can do business. An application for any type of 0-licence, be it restricted,standal national, or standard international, £250. But that is before you take int account the licence issue fee of E3c. (which has to be renewed every five yea at £391 a time). Got all of that? Rigt don't forget insurance (the RH, estimates insurance for six months cos £2,110), money for services and repai: (approximately £530 would just abot cover any outlay in the first eight week the RHA says) and overheads (such t running an operating centre. which coul set you back £1.800 for the first eigt weeks, again courtesy of the RHA).
This is before you take into accour the haulier's big cost: fuel.The figures tit RHA estimates for running a 44-tonn artic are: gross mileage of 70,900 milt per year. or 1,400 miles per week. .1berefore, the first eight weeks of operation, using a rate of 57.4 pence per mile is £6.430. It is worth noting at this point that the RHA uses the eight-week estimate as this gives an indication of how much money you will have to pay out before you start to receive money from your customers. assuming 60-day payment terms.
In the bank
inally, remember to leave some money in the bank. A holder of a standard national licence or standard international licence must prove they have £8,100 in the bank for each vehicle on that licence. If you want to run an additional vehicle, you must have proof of a further £4,500 per vehicle.A restricted 0-licence holder must prove access to 0,100 per vehicle.
When you add all this together (see table). CM estimates you need £26.411 to cover your initial set-up costs and keep you trading before the money starts coming through on eight-week (or 60day) invoice terms.
And finally, don't forget wages. If you wish to pay yourself a wage. the RI-IA estimates that an average HGV driver would earn over an eight-week period £4,740, before tax. This gives you a grand total of 01,151 so you can be on the road and working before the money flows in! •