Most people who drive their own van for a living in the UK operate as a sole trader. It's the simplest structure to set up and the one nearly every courier network and delivery platform expects when they onboard you as a subcontractor.
1. Register as self-employed with HMRC
You need to register for Self Assessment as soon as you start trading, and in any case before 5 October following the end of the tax year in which you started. Registration is free and done through gov.uk. You'll be given a Unique Taxpayer Reference (UTR), which you'll need every year at tax return time.
2. Sort your van insurance before you sort a contract
Standard van insurance won't cover you carrying goods for payment. You need hire and reward cover, and most courier networks will ask to see proof of it, along with a minimum goods-in-transit limit, before they'll onboard you. See our van insurance guide for what to look for.
3. Decide how you'll get a van
Cash, hire purchase, PCP or lease all work, but the right choice depends on your mileage and how confident you are in steady work. Higher-mileage rounds often make PCP mileage caps expensive to bust, so many multi-drop couriers prefer HP or cash. See the full finance comparison.
4. Understand who's actually setting your rate
If you're subcontracting to a network like DPD, Evri, or an Amazon DSP-linked operator, your day rate or per-parcel rate is usually set by them, not negotiated freely. Read your contract closely for fuel cost pass-through, parking fine liability, and whether you're required to provide a substitute driver during holiday or sickness.
5. Open a separate business account and start tracking mileage from day one
You don't legally need a separate business bank account as a sole trader, but it makes Self Assessment far easier. Start logging mileage immediately — either with an app or a simple log — since HMRC's 45p/25p mileage rates require a defensible record if you're ever asked.
6. Know your first-year tax bill is coming later than you think
Your first Self Assessment bill often includes a "payment on account" for the following year, which surprises a lot of new sole traders. Put aside roughly 25–30% of profit as a rough rule of thumb, and see our Self Assessment guide for the specifics.