HGV & Van Drivers · Haulage · Updated July 2026
✓ HMRC-sourced

Making Tax Digital for HGV and Van Drivers —
Owner-Operator Income Explained

📅 29 July 2026 ⏱ 7 min read Editorial policy ↗

Owner-Operators vs Agency Drivers. Status Changes Everything

Self-employed HGV and van driving covers a genuinely wide range of arrangements. Owner-operators who own or lease their own vehicle and take on haulage contracts directly are clearly self-employed, and all their contract income counts towards MTD. Drivers who work through an agency, however, are often engaged as PAYE or umbrella workers rather than genuinely self-employed, especially since off-payroll working reforms tightened how agencies can engage drivers. If tax and National Insurance are already being deducted from your pay before you receive it, that income sits outside MTD for Income Tax entirely.

Multiple Haulage Contracts and Backhaul Loads

Owner-operators often work across several haulage firms or logistics brokers rather than one exclusive contract, picking up backhaul loads to avoid running empty on return journeys. Every contract's payments, however they're sourced or however many different firms you work with, combine into a single qualifying income figure for MTD purposes.

Worked Example

Callum. Owner-operator running his own HGV, taking contracts through two haulage brokers plus some direct backhaul arrangements.

Broker A contract income (gross): £38,600
Broker B and direct backhaul income (gross): £16,400
Total qualifying income: £55,000 — above the £50,000 Phase 1 threshold. Callum is already subject to MTD for Income Tax from April 2026, having been assessed on his 2024/25 return. His vehicle costs, fuel, and finance are substantial expenses that reduce his taxable profit significantly, but don't reduce his gross qualifying income figure.

What You Can Claim

  • Vehicle costs — fuel, finance or lease payments, servicing, tyres, usually the biggest expense category
  • Vehicle insurance — goods-in-transit and haulage-specific cover
  • Tachograph and vehicle inspection costs
  • Operator's licence fees where applicable
  • Congestion charges, tolls, and parking
  • Driver CPC training and licence renewal costs
  • Overnight subsistence where genuinely incurred for longer routes
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Frequently Asked Questions

I drive for an agency. Does MTD apply to me?

It depends on how you're engaged. Many agency drivers are PAYE or umbrella workers, in which case that income is excluded from MTD entirely. If you're a genuine owner-operator invoicing directly for haulage contracts, that income does count.

Do I add income from different haulage brokers together?

Yes, all your self-employment income combines into a single qualifying income figure, regardless of how many brokers or firms you work with.

Can I claim my vehicle finance payments?

Yes, vehicle finance or lease payments used for your haulage business are a normal allowable business expense, alongside fuel, insurance, and servicing.

What about overnight subsistence on longer routes?

Reasonable overnight subsistence costs genuinely incurred while working away from your base can generally be claimed, though it's worth keeping clear records.

Does an Operator's Licence fee count as a business expense?

Yes, if you hold an Operator's Licence for your haulage business, the associated fees are a normal allowable business expense.

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