Northamptonshire-based SCS Haulage has seen its licence curtailed and received a formal warning following a public inquiry which found full-time drivers were being hired as “self employed” staff, as a result of the company misunderstanding the rules around IR35 and the use of agency drivers.
The case has prompted Traffic Commissioner Richard Turfitt to warn the haulage industry that, regardless of the size of a transport business, it is exceptionally rare for an HGV driver to be genuinely self-employed unless they are an owner-driver operating under their own operator’s licence.
The public inquiry, held last month, was triggered following a DVSA vehicle stop in January 2026. The driver of the SCS Haulage truck claimed to be “self-employed”, invoicing SCS Haulage through his own limited company, despite working full-time for SCS Haulage for around seven years.
A subsequent DVSA specialist visit in April 2026 found that the company also employed several drivers via a number of external agencies. The operator defended the arrangements, stating that the company paid the agencies directly, who in turn paid the drivers.
Director and transport manager Simon Christopher Short argued that SCS Haulage was insulated from employment compliance responsibilities under IR35 tax legislation, believing it met the criteria for a “small-sized company.” He maintained that the legal responsibility for the drivers rested solely with the supplying recruitment agencies.
At the public inquiry Traffic Commissioner Richard Turfitt firmly rejected this defence, warning that operational control over drivers is not dependent on the size of a company or IR35 parameters.
Citing established case law the Traffic Commissioner noted that it remains exceptionally rare for an HGV driver to be classified as genuinely self-employed unless they are a registered owner-driver operating under their own distinct operator’s licence.
The Traffic Commissioner said the investigation found that: “So called agency or self-employed drivers were inducted and trained in the operator’s systems in the same way as employed drivers, with the clear intention that they be more than a temporary engagement.
“The drivers were said to be under the control and direction of the operator. They were given instructions by the operator and expected to comply with the operator’s procedures.
“Driver’s hours analysis was undertaken by the operator, and driver infringements were raised and followed the same systems for employed drivers.
“What was described, did not amount to a self-employed driver. Submissions also confirmed that this was more than temporary.”
The Traffic Commissioner’s ruling sets out the strict criteria used by government regulators to identify actual employment status.
Drivers are legally deemed employees if they work regularly, are expected to complete a minimum number of hours, cannot send a substitute to complete their shift, use the operator’s vehicles and equipment, and fall under the operator’s internal disciplinary structures.
Because agency workers are contracted to perform tasks temporarily for a hirer, hauliers cannot simply contract out their core statutory transport management obligations to a third-party staffing firm.
The Traffic Commissioner made clear that that ultimate responsibility for continuous, effective driver management, tachograph compliance, and operational control remains firmly with the licence holder and their named transport manager.
Despite the company’s misunderstanding of driver control, the DVSA examiner noted that the firm’s physical vehicle maintenance standards and tachograph analysis systems were largely satisfactory.
SCS Haulage operated an in-depth risk assessment model and used automated fleet management systems to track driver infringements.
Taking these mitigating factors into consideration, the Traffic Commissioner said he would not disqualify or completely revoke the company’s licence.
Instead, SCS Haulage received a formal warning, with strict ongoing conditions attached to the Standard International licence, and the operator’s fleet authorization cut to 20 vehicles and 35 trailers to ensure tighter managerial control moving forward.
