Beginner’s Guide on Starting a Waste Collection Business in the United Kingdom
If you wish to venture into the waste collection business, you can turn your truck or a larger van into a garbage pickup business. Starting a waste collection business in the United Kingdom is likely to earn you some income stream if you do it right. Before you think of this venture, it will cost you nothing to do some research on the industry and find out what it takes to start one. Building a new business begins with one idea and escalating the concept into reality. You can guide yourself on starting a waste collection business in the United Kingdom.
Industry Practice on Waste Collection Business in the United Kingdom
We human beings always want to stay in a clean environment. And for us to stay in such an environment, waste must be collected and disposed of appropriately. Waste collection is an avenue that one can explore and earn some decent income in the United Kingdom. Ideally, the United Kingdom produces at least 100 million tonnes of waste in a year, mostly from construction, demolition, and industrial processes.
The growing recycling and incineration of waste is part of the new laws moving away from disposal in landfill sites. Lately, the landfills are being filled up. Empirical reports indicate adopting recycling to at least 50% of industrial and business waste with approximately 45% of households. The current EU recycling target is at a minimum of 50% of household waste by last year (2020).
We see the introduction of new laws or regulations to cover different types of waste. The primary objective is to have a ‘zero waste economy’ where there is the minimization of waste as much as possible, and recycling is made a priority. This legislation has led to an increase in demand for specialized waste collection services. Large organizations are looking to include more secondary materials in their raw material stock.
Business Registration Process
Waste collection is actually an accessible business to start if you have the minimum of tools. You would need a van, a relevant waste carrier license, and some PPE (Personal Protective Equipment) to create one. During your collection time, you might be working with scrap metals, wood, broken glasses, and in some instances, powdery material such as drywall, and concrete, among others.
What to Consider When Starting a Waste Collection Business in the United Kingdom
Register Your Waste Collection Business
Before registering your business, you must first have a business name and identify the legal entity that will suit your business. If you legally register your business, you have the upper hand in negotiating contracts with the local authorities or attracting customers. You can register as a limited partnership or a limited company. The requirements for company incorporation in the United Kingdom are pretty simple. You can always check or visit the HMRC page to understand and enquire more about the process.
Create a Website for Your Business
We can all agree that creating a business website is one crucial component of success. more certainly, your competitors will have one unless you plan to hand all your customers to them. Through your website, you can showcase what kind of services you offer, the certification, the location, and contacts. Again, you can always link your website with your social media platforms and get customer feedback regarding your services.
Research Your Target Market
You can start any business without thinking of your target customers and whether there is actual demand. The local authority covers the collection of dry waste with domestic waste collection services and recycling facilities. Likewise, skip hires are widely used to dispose of large items or garbage such as household and garden rubbish. Therefore, you have to offer more specialized services to remain in the market and make some money. Again, you must research what your competitors are doing regarding their services, pricing, and the type of equipment they use.
Advertising Your Business
When starting a waste collection business in the United Kingdom, you can promote your business through advertising. First, you can identify which approaches will work well for you, whether through word of mouth, distributing flyers, business cards, or publishing in newspapers or magazines. Moreover, you can promote your business through your website through ads targeting the right people.
Secure an Insurance Policy
Protecting your business from any risk posed by your operations and the public is vital. You can do this by securing an insurance policy. When running a waste collection business that offers support and services to other companies, you run some industry-specific risks. Therefore, it is significant that you have an insurance plan so that your company does not suffer insurmountable financial losses.
Worker’s compensation insurance: Your employees will often work in several different environments, and some may not be safe. A solid insurance policy covers employees’ requirements in a work-related accident or injury.
Fidelity Bond Insurance: in most cases, you’ll be sending employees to other businesses to perform services; it is essential to bond and ensures your employees against crimes they might commit due to their operations.
Environmental Impairment and Pollution Legal Liability Insurance: these are significant to companies that deal with waste management, specifically when they handle hazardous waste. It covers liability lawsuits for ecological damage caused by improper waste disposal. Check out a guide to company registration in the United Kingdom on the government website and other regulations relating to the waste collection business.
Licenses, Permits, and Regulations
The waste collection business does not necessarily require a license, but you must comply with particular regulations of your company.
Waste Carrier Registration
Starting a waste collection business in the United Kingdom will involve transporting controlled wastes. It requires a certificate of registration as an upper-tier waste carrier or broker. You will incur a fee of approximately 155 pounds for the initial registration. And also, an additional renewal fee of about 105 pounds every three years. In Scotland, the fees are much higher and slightly lower in Northern Ireland.
In any case, you can always consult a corporate service provider in the United Kingdom such as 3E Accounting on matters relating to legislation and permits.
Environmental Permit or Waste Management License
You will require an environmental permit if you’re going to store any waste at your premises if you have large quantities. This authorizes the site as a licensed waste transfer station permitted to carry out specified waste-related activities. Nevertheless, the cost will depend on the type and amount of waste g and the specific activities undertaken. You can possess the license as long as you have not surrendered it to the authorities or revocation following a breach of the conditions. All you will be paying is an annual subsistence charge payable to cover the cost of inspections.
Having a waste environmental permit saves you from additional registration; as a broker or a dealer when disposing of waste from other landfill sites. However, if you send waste as your permit does not cover it, you must register with the Environment Agency as an upper-tier waste broker. You can inquire further about environmental permits from the Environment Agency website.
Other Permits and Licenses
Besides the environmental license, you will need to comply with the following:
- If you use any vehicle over 3.5 tonnes, you’ll need an operator’s license. Your driver must have a valid driving license.
- In case you deal with asbestos, you’ll need a license from the Health and Safety Executive (HSE)
- You’ll need a scrap metal dealer’s license if you collect or sell them in large quantities.
Legislation on Waste
The legislation concerning waste keeps on changing. You must stay up-to-date with the amendment and requirements relating to your business.
Duty of care
When starting a waste collection business in the United Kingdom, you have the ‘duty of care responsibilities within the environmental protection legislation. The primary reason is to ensure that waste is kept, transported, and disposed of safely. Again, the legislation applies to the entire group in the waste chain. You cannot transport waste if you are not registered to do so.
Waste Transfer Notes
This applies to every time you collect or deliver a load of waste. You must fill out a waste transfer note or equivalent written documentation. In a particular instance, an invoice or similar document may suffice. The note contains a written description of the waste under transit and acknowledges that the waste management hierarchy has been applied. The note should describe the amount of quantity, the time, and the date alongside the addresses of the person (s) involved in the transfer. You can always look for help when starting a waste collection business in the United Kingdom if you contact Contact 3E Accounting.
