How to Start a Courier Business in the UK

The UK parcel delivery market is booming – worth up to £20 billion in 2025 thanks to e-commerce growth and rising demand for fast, reliable deliveries. Whether you're eyeing local drop-offs or national next-day services, now’s a great time to get into the courier game.

Want to start a courier business in the UK? Here’s how: Choose your niche, register your business, get the right licences and insurance, buy or lease a vehicle, and start delivering. You’ll also need to plan your budget, find clients, and consider funding for startup costs.

Read on to learn more 👇

1. Decide what kind of courier business you’ll run

Courier services come in many shapes and sizes. Before anything else, decide what kind of deliveries you want to handle and how far you're willing to travel. You might choose to deliver goods locally, regionally, or nationwide, depending on your setup.

Courier type	Typical vehicle	Best for
Same-day delivery	Car, van or bike	Local businesses, urgent parcels
Next-day delivery	Van	E-commerce fulfilment
Long-distance	Large van or lorry	B2B, pallet or bulk shipping
Specialist courier services	Varies	Medical couriers, fragile goods, legal documents

Start small and focused – you can always expand later. If you’re planning to travel long distances or deliver high-value or sensitive items, your vehicle and insurance needs will change accordingly.

2. Register your business and choose a structure

Most new courier company owners in the UK register as either a sole trader or a limited company. Here's how it works:

Sole trader: Quick and simple, but you're personally responsible for any debts.
Limited company: More paperwork, but limits your personal liability.

You’ll need to:

Register with HMRC or Companies House
Set up a business bank account
Maintain records of your income and expenses
Register for VAT if your turnover exceeds £85,000 per year

If you plan to employ others, you’ll also need to register as an employer and set up PAYE for your full-time employees or part-time staff.

3. Get the right licences and insurance

To stay compliant and protect yourself, you’ll need the right licences and courier insurance. At a minimum, this includes:

Courier insurance – different from standard vehicle insurance, it covers commercial deliveries
Goods in transit insurance – covers parcels and items being delivered
Public liability insurance – protects against injury or damage claims
Vehicle insurance – for business use
MOT and road tax – for your vehicle
A DBS check – if handling sensitive items (e.g., medical couriers)

Different types of courier services may require specialist policies. For example, medical couriers often need bespoke cover for temperature-sensitive or hazardous items.

4. Buy or lease a suitable vehicle

Your vehicle is your main asset. When starting a delivery service, your vehicle choice depends on what you plan to deliver and your delivery area:

Car or van: Versatile, ideal for most courier needs
Electric vehicle: Low-emissions zones, sustainability goals, and fuel savings
Bike or scooter: Great for congested urban areas and short trips
Lorry or larger van: Best for pallet shipping or B2B courier services

You can either:

Buy, which is more upfront cost, but you own the asset
Lease, offering a lower initial cost, predictable monthly payments, and often includes maintenance

5. Use the right tools to manage your business

Running a courier business is easier when you use the right tools. Consider investing in:

Route planning apps (e.g., Circuit) to save fuel and time
Delivery tracking software for customers
Fuel cards to simplify expenses and access discounts
Accounting software (e.g., Xero or QuickBooks) for tax and cash flow
Booking and scheduling tools to keep track of deliveries and clients

If you're an employed courier working for a larger business, you may already be familiar with some of these systems.

6. Plan your budget and write a simple business plan

A business plan helps you clarify your goals, finances, and growth. You don’t need a huge document to get started – just cover the basics:

Startup costs

Vehicle purchase or lease
Courier insurance
Licences and registrations
Tools and equipment (PDA, phone, fuel card)
Branding and marketing

Running costs

Fuel
Vehicle maintenance
Insurance renewals
Mobile phone and software

Revenue forecast

Estimate how many deliveries you can do each day and at what rate. This helps you forecast income and track profitability.

Pricing strategy

Decide how you'll charge: flat fees, per mile, or time-based rates. Factor in fuel and maintenance.

Tight on cash flow? Many new courier businesses use a startup loan to manage early costs.

7. Find customers and build your brand

Once you're ready to deliver goods, it's time to win clients. Start by marketing to businesses in your area and leveraging online platforms:

Ways to find work

Partner with local shops and e-commerce businesses
List your delivery service on sites like Shiply, AnyVan, or Courier Exchange
Register on Google Business to appear in local searches
Join courier industry Facebook groups or forums
Cold email or visit local businesses with flyers or cards

Branding tips

Create a simple logo and uniform
Use vinyl decals to brand your van or bike
Build a basic website that outlines your services and contact info
Collect reviews and testimonials from happy customers

Customer service is your best marketing tool. Being prompt, polite, and professional goes a long way in this competitive industry.

8. Consider business funding to grow faster

Even a lean courier business has startup costs. If you want to expand or cover early expenses, consider a business loan for:

Buying or leasing a van
Paying for insurance upfront
Covering fuel costs
Hiring full-time employees or subcontractors
Upgrading to more efficient delivery software

Why use a business loan?

Preserve your cash flow while building your client base
Invest in growth opportunities sooner
Avoid maxing out credit cards or using personal savings

Fleximize supports courier businesses with flexible loans up to £500,000. You get tailored terms, fast decisions, and no hidden fees.

Final tips for running a courier business

Stay up to date with industry news and Royal Mail rates
Monitor your fuel spend and route efficiency regularly
Always carry spare parts and emergency gear
Offer time slots or live tracking for better customer service
Specialise in niche areas (e.g., fragile goods, medical samples) to stand out

Courier services are in high demand thanks to e-commerce growth and the rise of same-day delivery expectations. But success comes down to smart planning, reliability, and customer focus.

Whether you’re delivering local parcels or launching a national courier company, there’s a growing market waiting for you. With the right setup and support, you could be up and running in just a few weeks.

✅ Need help with startup costs? Fleximize offers fast, flexible business loans tailored to courier startups and delivery services that’ve been trading for as little as six months.

Get an instant quote today to find out how our flexible and fuss-free funding could work for you.

Your common questions answered

Do I need a business licence to be a self-employed courier?

No, there’s no specific courier licence required in the UK, but you must register as self-employed and hold the right insurance.

If you plan to run a limited company or employ staff, you’ll need to register as an employer and meet legal obligations such as PAYE and workplace pensions.

What insurance do I need to be a courier?

You’ll need courier insurance, goods in transit cover, and public liability insurance at a minimum.

You may also need employers’ liability insurance and specialist cover depending on what you deliver (e.g. medical items).

Can I be a courier with my own car or van?

Yes, many couriers use their own vehicles, but you must have the correct insurance for business use – standard car insurance won’t cover deliveries. You may also need a vehicle with enough space for larger items.

Is being a self-employed courier profitable?

It can be. Your income depends on how many deliveries you complete, your pricing model, and your expenses like fuel, insurance, and vehicle maintenance. Starting with a solid plan can help improve your chances of success.

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