Beginner’s Guide on Starting a Skip Hire Business in the United Kingdom

Starting a Skip Hire Business in the United KingdomBefore starting a skip-hire business in the United Kingdom, there are multiple things you need to know to make it work. Ask yourself whether you’re planning to process the waste or not. With your waste transfer station, you can also take waste from other companies. Here is a guide on starting a skip-hire business in the United Kingdom to help you!

 

Industry Practice

Waste disposal and environmental protection have been on tighter protection legislation in the United Kingdom. The efforts aim at reducing the volume of waste produced and minimizing its impact on the environment. Therefore, when starting a skip-hire business in the United Kingdom, you must understand what legislation affects your business.

At each stage of the process, there are stricter waste management rules:

  • The waste producers have the responsibility to ensure their waste is disposed of properly
  • For the waster, collectors must have a license and must transport, store, sort, and process waste safely and properly
  • The final disposal process, often via landfill, must execute following strict guidelines

With the introduction of landfill tax, the cost to skip operators of waste disposal has gone up. Today, most local councils have been pushed to clamp down on what private households can dispose of as domestic rubbish. As a result, hiring a skip hire is the best alternative waste disposal option.

Waste recycling is now a hot topic as we see several initiatives set up to encourage businesses and industries to minimize the volume of non-recoverable waste. Over the recent period, the costs like landfill waste disposal and fuel have been on the rise affecting the operators’ profitability.

However, with the opening of markets for other properly sorted waste recyclables like wood, it’s becoming more profitable to manage waste.

 

Business Registration Process

When you decide that you’re providing waste disposal services, you must understand the rules and regulations of the business.

Research Your Target Market

Starting a skip-hire business in the United Kingdom requires you to research the market. You have to think carefully about your potential customers and the demand for the services you’re offering. Some of the primary private customers include homeowners. Think about the various areas of housing in your area. You can pay attention to younger couples and families where we have homeowners.
Again, you have to know who your competitors are. What kind of services are they offer, the prices, and the size of their skip. Remember, you may also get competition from unlicensed fly-tippers who operate illegally.

Register Your Business

Any form of business that requires recognition has to register under a brand name. Before you register any form of business, you must have a business name that reflects the nature of your business. You can register as a limited company or limited partnership with the Companies of House in the United Kingdom. The law requires that you register with the HM Revenue & Customs for taxation purposes. If you happen to have employees, you must comply with the employment law of the United Kingdom. You can begin the process of United Kingdom company incorporation once you have all your legal documents ready.

Pricing Your Services

When starting a skip-hire business in the United Kingdom, you must know the prevailing prices in the market. Thus, you can do so by doing a competitor analysis concerning costs. More often than not, private and one-off customers will query for a price for a specific size of the skip. Moreover, some will want to know how long they can have the skip, while others will ask about your charges for prolonged periods. For others, they will ask for special requirements, for instance, drop-side access or covered skips.

Your quotation will depend on the following factors:

  • The size of the skip
  • The kind of waste that will go into the skip
  • How far the drop-site is from your depot and licensed waste disposal sites
  • Accessibility of the site
  • If the skip is on a public highway or private land
  • There will be any special arrangements to be made, for instance, the suspension of a restricted parking bay.

Again, your quote prices may vary depending on whether the client is a business or a private householder. If you decide to offer special rates to business users, it has to be precise.

Promoting Your Business

While starting any new business, you must promote the business to your target customers. In this case, there are various ways you can advertise, from word of mouth to directories, magazines, newspapers, and TV. To promote your business, you must know where your target audience spends most of their time. This means that you’ll put targeted messages that will drive the conversation rate. It means you must understand the preferences of your potential customers.

 

Licenses, Permits, and Regulations

The transportation, disposal, and storage of regulated and hazardous wastes are carefully controlled in the United Kingdom. Let’s have a look at some of the primary regulations that may be relevant to your business.

As a businessman, you’ll require specific licenses for you to operate legally as a skip-hire business. Here are some of the main permits that you should be aware of.

 

Waste Licensing in Skip Hire Business in the United Kingdom

As a skip hire business involves transporting regulated wastes, you’ll need a certificate of registration as an upper-tier waste carrier or broker. The Environment Agency is the department involved in issuing the certification. Currently, the fee amounts to 155 pounds for the initial registration fee and a further renewal fee of about 105 pounds every three years. The single license will cover your entire waste transporting vehicles.

In circumstances where you’ll be storing any waste at your premises, then you’ll require an environmental permit authorizing the site. An exemption can only apply if the amount is in small quantities. The site license cost will vary depending on the type and amount of waste handled and specific activities are undertaken. The license can be revoked if there is a breach of the conditions; however, an annual subsistence charge is payable to cover the inspection costs. Again, the subsistence charge will fluctuate and run to a specific amount of pounds.

In a situation where you have an environmental permit as a waste transfer station, you wouldn’t have to register separately as a waste broker or dealer. When you send the waste to a site not covered by your permit, then you’ll need to register with the Environment Agency as an upper-tier waste broker.

For more information about environmental permitting, you can check the government website. You can also contact a corporate service provider such as 3E Accounting for further assistance when it comes to permits and licenses.

Scrap Metal

You should be aware that scrap metal dealing forms a considerable part of your business. It requires obtaining an appropriate scrap metal dealer’s license from your local authority. Always check with the local authority if you’ll be handling a large quantity of scrap metal.

Asbestos

When handling or working with asbestos as part of your business, you will need a license from the Health and Safety Executive (HSE) Asbestos Licensing Unit.

Vehicles

Starting a skip hire business in the United Kingdom means that your business will operate with large tracks/lorries. And in that case, you need an operator’s license for each traffic area you work in. Primarily, the Transport Office Traffic Commissioner of the site issues the licenses. Each of the drivers must have a valid driving license that covers that category of vehicle. Any professional driver must have the current certificate of professional competence, which they must renew every five years.

For any driver to acquire a license, they must pass a driving test for the appropriate vehicle class. In addition, for anyone driving a vehicle exceeding 7.5 tonnes gross weight, the driver must hold an LGV (large goods vehicle) license. To look even more professional, you can get a skills registration card to show that your business complies with the requirement under health and safety legislation, even though it’s not mandatory. You can get better training from the Sector Skills Council CITB for the card schemes and the Construction Plant Competence Scheme (CPCS). You can check out the guide to company registration in the United Kingdom for more updates and information.

 

Skip Hire Licensing Business in the United Kingdom

You’ll be required to have a ‘skip permit’ or ‘skip operator’s license if you place skips on a public highway from the local authority. You’ll require controlled parking permission in certain circumstances, and the charges will vary from different local authorities.

Starting a Skip Hire Business in the United Kingdom

If you require any help in starting a skip-hire business in the United Kingdom, contact 3E Accounting.