For businesses
Starting a man and van business in 2026: costs and rules
A new Ford Transit Custom starts at about £32,000 before VAT (Carwow, 2026 review), tax on most vans is £360 a year, and you must register for VAT once turnover passes £90,000 in any 12 months (GOV.UK, October 2026). A van plated at 3,500 kg needs no operator licence for UK work and can be driven on a car licence, so most firms start as sole traders with hire and reward motor cover, goods in transit cover and public liability.
What van do I need to start a man and van business?
Most firms start with a long wheelbase high roof van or a 3.5 tonne Luton. Hellovans' size guide (May 2026) puts a long wheelbase high roof van at about 11 to 15 m³ with a payload of 1,000 to 1,300 kg, and a 3.5 tonne Luton at about 17 to 19 m³ with roughly 1,000 kg of payload. A Luton holds more but carries no more weight, so books, white goods and solid wood furniture can hit the weight limit before the van looks full.
Staying at or under 3,500 kg keeps the paperwork light. A category B car licence covers it, and in Great Britain you need no goods vehicle operator licence for UK work. A 7.5 tonne lorry holds about 30 to 40 m³, but it needs a C1 licence and an operator licence.
Carwow's 2026 review puts a new Ford Transit Custom at about £32,000 before VAT (checked October 2026); a used van costs less, depending on its age and mileage. Vehicle tax for a van registered on or after 1 March 2001 is £360 for 12 months (GOV.UK). If you will work in London or a clean air zone, a diesel van that meets Euro 6 or a petrol van that meets Euro 4 avoids a daily charge every time you go in.
What insurance does a man and van business need?
Hire and reward motor insurance. Motor insurance of at least third party is a legal requirement on UK roads (GOV.UK), and your policy must cover carrying other people's goods for payment. Zego says a standard policy stops covering you once you are paid to transport something.
Goods in transit. This covers customers' belongings while they are loaded, carried and unloaded. It is not compulsory, but customers ask about it. A2B Moving (May 2026) puts typical cover at £10,000 to £50,000 per load.
Public liability. This covers injury to other people and damage to their property during a job, such as a scraped door frame. It does not cover the goods in your van.
Employers' liability is compulsory as soon as you employ someone, which can include a paid helper. It must cover at least £5 million, and GOV.UK says you can be fined £2,500 for every day you are not properly insured.
Should I be a sole trader or a limited company?
Most man and van firms start as sole traders, because you can begin trading straight away. GOV.UK says you must register for Self Assessment as a sole trader if you earn more than £1,000 in a tax year (6 April to 5 April). For the 2025 to 2026 tax year, the deadline to tell HMRC is 5 October 2026.
A sole trader is personally responsible for all the business's debts. A limited company limits that to what the owners put in, but directors have more filing and rules on taking money out. Registering a company with Companies House costs £100 online, usually within 24 hours, or £124 by post (GOV.UK).
Making Tax Digital for Income Tax has applied from 6 April 2026 to sole traders whose qualifying income was over £50,000 in 2024 to 2025. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028 (HMRC, March 2026), so keep digital records from the start.
When does a man and van business have to register for VAT?
When your taxable turnover for the last 12 months goes over £90,000, the VAT threshold (GOV.UK, checked October 2026). It is a rolling 12 months, not the tax year. You must register within 30 days of the end of the month in which you went over.
You must also register if you expect to go over £90,000 in the next 30 days alone, for example after taking on a large office move contract.
Once registered, the prices you show householders must include VAT. The CMA's price transparency guidance (CMA209, updated January 2026) lists VAT among the mandatory charges that belong in the headline price.
How should I price my first jobs?
Check local rates first. Fantastic Services' September 2026 guide puts a man and van at £50 to £80 an hour outside London and £60 to £100 in London and the South East, with a minimum of two to three hours. Compare the Man and Van (March 2026) puts a driver-only small van at £30 to £50 an hour.
Decide early how you count time, what fuel and mileage you include, and what costs extra, then put it in writing on every quote. Our guide to pricing a man and van job works through an example.
What do customers ask before they book a man and van?
Insurance. What is your goods in transit cover per load, and can I see the certificate?
Crew and access. How many people come, and will they carry up and down stairs?
Time. When does the clock start, is travel charged, and what is the minimum?
Extras. Is fuel included, and who pays for parking, the Congestion Charge or a clean air zone charge? Will you take apart and rebuild beds and wardrobes?
Rubbish. Can you take my old furniture? Only with an upper tier waste carrier registration.
Changes. What happens if I cancel or move the date?
A one-page price sheet and short written terms answer most of these before the phone rings.
Common questions
Do I need a licence to run a man and van business?
Not for a van plated at 3,500 kg or less doing UK work. You need a category B driving licence, the right insurance and, if you take customers' rubbish, an upper tier waste carrier registration. An operator licence is needed above 3,500 kg, or for paid work in the EU with a van over 2.5 tonnes.
Is goods in transit insurance a legal requirement?
No. AXA says there is no legal obligation to hold it. Most customers still expect it, and many ask for the per-load limit before they book.
Can I use my personal van insurance for paid jobs?
No. A standard policy does not cover carrying other people's goods for payment. You need a policy that includes hire and reward use.
How much does it cost to set up a limited company?
£100 online or £124 by post with Companies House, when we checked in October 2026. Online registrations are usually done within 24 hours.