Here's what not to do!
Page 28
If you've noticed an error in this article please click here to report it so we can fix it.
Below are some examples of easy ways to flag our which will NOT work. The operator will commit criminal offences in the UK and other EU states.
1. Can I simply register a vehicle in, for example, Holland, and specify it on my UK 0-licence?
No. If you do that you will still be liable to pay VED, The reason is that you are not resident abroad. If you have a UK 0-licence, by definition you are still resident in the UK. This will be the case even if you are using your vehicles entirely on international journeys.
French and Belgian authorities have been prosecuting UK hauliers (particularly from Northern Ireland) who have an 0-licence and international authorisation granted in the UK but who are using vehicles registered in Ireland, It is illegal, and you will be liable to prosecution by the UK authorities and to have action taken against your 0-licence.
2. Can I establish a subsidiary company in, for instance, Holland, register my vehicles in Holland and obtain an 0-licence in Holland, and then use my vehicles on domestic business in the UK?
Again, the answer is no. If you are involved in a purely domestic, mainly domestic or regular domestic operation, you will not be involved in cabotage and therefore you will not be exempt from VED.
3. Can I establish a company abroad and still employ my drivers in England?
If you establish your business abroad your drivers should be employed subject to the laws of the state in which you are established. They are entitled to all the benefits of those laws, including minimum wages under the social convention. If you continue to employ your drivers under English law you will not be committing a criminal offence in England, and it will not affect the VED position. You will, however, be taking a risk that the authorities in the state in which you are established could take action against your 0-licence. That will obviously affect your good repute for any UK 0-licence which you have or may wish to apply for.
Finally, your drivers could hold you to ransom because you should be paying them at enhanced rates.
4. Can I establish a subsidiary company in Holland, register the vehicles in Holland and then hire them to my UK operation For domestic or international work?
No. There is an EC directive which prevents cross-border hiring of commercial vehicles except in the most limited circumstances. That is the basis on which the French and Belgian authorities are at present prosecuting operators. However, the EC has indicated that there is a draft amendment to the regulation which will permit cross-border hiring in much wider circumstances, so the position may change in the future.