Vehicle damage reporting for a self-employed workforce: from photo to repair to who pays

Short answer. Run one damage loop for every van: record its condition whenever it changes hands, capture the report at the time, decide whether it stays on the road, notify the insurer within your policy's terms, repair it, apply any cost only as the written agreement allows, and close the record. One loop keeps vans working and avoids disputes later.

General information for operators, not legal advice. Couriers are one example; the same loop works for cleaning, facilities, care and field-service teams running vans. Checked against the legislation.gov.uk, GOV.UK and ICO pages listed under Sources on 19 October 2026.

• Why damage is an ops problem
• Step 1: condition at handover
• Step 2: what to capture at the time
• Step 3: triage
• Step 4: insurer notification
• Step 5: who pays
• Step 6: repair, return and close
• Dashcam and telematics footage
• Records to keep
• How Zerity helps
• Common questions
  • How do I handle damage that was already on the van?
  • What if a driver disputes a damage report?
  • What happens to damage found when someone stops working with us?
  • Is a parking or traffic penalty the same as damage?
  • Should we keep dashcam footage?
• Sources

# Why damage is an ops problem

A damaged van is a gap in tomorrow's rota, a repair to book, an insurer to notify and, too often, an argument weeks later about who did it. Most disputes come from missing evidence: no condition record when the van was handed over, a report made days later, or photos sitting on someone's phone. A simple, repeated process fixes most of that.

This article covers damage. Mechanical defects found on the daily walkaround are covered in our walkaround check guide, and MOT, service and defect records in our van maintenance guide.

# Step 1: condition at handover

Record the van's condition every time it changes hands: at the start of an engagement, when a van is swapped between people or sites, and when it is returned.

• photos of each side, front, back, roof line where practical, wheels and the interior
• existing marks noted on the record, with their location
• mileage and fuel or charge level
• the date, time and both people's names, with the person taking the van confirming the record

Without a handover record, nobody can show whether a mark is new. The same record is what you use when a supplied van comes back at the end of an engagement; see the offboarding checklist.

# Step 2: what to capture at the time

Ask for the report as soon as it is safe, not at the end of the shift. Capture:

• date, time and exact location
• what happened, in the driver's own words
• other vehicles involved, with registrations, and other drivers' names and contact details
• witnesses and their contact details
• any injuries
• photos of the damage, the scene and any other vehicle
• dashcam footage, if a camera is fitted

Your insurer's own claim form is the best model for these fields, because it lists what they will ask for. Check it and match your report to it.

The legal duty to stop. Section 170 of the Road Traffic Act 1988 applies in Great Britain where, owing to the presence of a mechanically propelled vehicle on a road or other public place, an accident causes injury to anyone other than its driver, or damage to another vehicle (not one it is towing), to certain animals (horse, cattle, ass, mule, sheep, pig, goat or dog) not carried in it, or to property on or forming part of the land where the road is, or next to it. The driver must stop and, if anyone with reasonable grounds requires it, give their name and address, the vehicle owner's name and address and the vehicle's identification marks. If for any reason they do not give their name and address, they must report the accident at a police station or to a constable as soon as reasonably practicable and in any case within 24 hours. If someone is injured and the driver does not produce their insurance certificate at the time, they must also report the accident and produce the certificate in the same way; they will not be convicted only for failing to produce it if it is produced within seven days at a police station they named when reporting.

# Step 3: triage

Decide quickly whether the van can keep working, and log the decision.

Name who decides a van comes off the road, and record their name, the time and the reason. If the van comes off, reallocate the work through the rota as normal; our rota planning guide covers offering work.

# Step 4: insurer notification

Notification windows, excess amounts and what counts as late reporting vary between policies. Read your own policy, whether it is yours (for a supplied van), the hire company's, or the driver's own hire-and-reward cover (for their own van), and put the notification deadline into your process so it is met every time.

# Step 5: who pays

Who pays depends on whose van it is and what your written agreement says. This table shows where to look, not what is lawful.

Do not treat a recharge as a given. With a self-employed driver, recovering a damage cost is a matter of contract: it needs a clause in the written agreement, signed before the van is used, that says when the driver bears the cost (for example, damage shown by the handover record and the report), how the amount is worked out (the repair invoice or the insurance excess) and how it is recovered. Keep the evidence, give the driver the calculation and a chance to respond, and keep the clause about loss to the van, not about how the driver does the job. Whether anyone is self-employed depends on the facts; see GOV.UK's employment status guidance and HMRC's CEST tool. Section 13 of the Employment Rights Act 1996 protects workers as defined in section 230(3), not genuinely self-employed contractors. But if a driver is in fact a worker, a deduction from wages is allowed only if it is required or authorised by statute or by a relevant contract term given or notified to them in writing beforehand, or if they previously agreed in writing, and that agreement cannot cover damage that happened before it was given. Take advice before making deductions. If you self-bill, show the full value of the driver's invoice and recover the damage cost as a separate line; VAT Notice 700/62 says not to reduce an earlier self-billed supply on a later invoice, and to use a debit note where the value of the supply itself has changed; our weekly pay-run guide covers invoice content. On VAT, HMRC treats a payment that covers the cost of repairing or replacing goods damaged while out of the owner's hands, such as a van on hire, as outside the scope of VAT, but a charge that is in substance more payment for the hire can be taxable, so agree the treatment with your accountant before you invoice it.

# Step 6: repair, return and close

Record the repair: who did it, when, the invoice and the date the van returned to service. Then close the record with a final note of the cost, who bore it and why. A closed record is what lets you answer a question about the van months later.

# Dashcam and telematics footage

Footage that shows identifiable people, including the driver, is personal data. The ICO's guidance on surveillance in vehicles, which the ICO says is under review following the Data (Use and Access) Act, says you must provide sufficient privacy information, for example signage in the vehicle telling drivers and passengers that recording is taking place and in what circumstances, and make clear who the controller is. Its checklist includes carrying out a data protection impact assessment, and it says audio recording should generally be switched off by default. Tell drivers what is recorded and why, keep footage of an incident with the damage record, and delete the rest on a set schedule.

# Records to keep

Keep the handover record, damage report, photos, triage decision, insurer reference, repair invoice and cost decision together on the vehicle file. Our record-keeping guide covers retention across the whole file. Penalty charge notices are a separate process; see managing PCNs.

# How Zerity helps

Zerity is one operating system for compliance and operations across your self-employed workforce. On the vehicle side:

• A vehicle and equipment register holds MOT, tax and insurance expiry, with an optional QR label. See asset management.
• Drivers complete walkaround checks on their phone before every shift, and defects reach you before the van leaves. See fleet management and vehicle inspection software.
• Incident reports, near misses, risk assessments and training records sit on the driver file. See health and safety.
• Every licence and policy expiry date is tracked in one place.
• During a walkaround check in the driver app, drivers can mark damage and add photos against the vehicle.

Zerity does not decide anyone's employment status or whether a recharge is allowed. Pricing is from £6 per active driver.

Book a demo to walk through a damage report on your own vans.

# Common questions

# How do I handle damage that was already on the van?

Record it on the handover record, with photos and its location, before the van is used. A mark recorded at handover is not a new report. Without a handover record, it is hard for anyone to show whether damage is new.

# What if a driver disputes a damage report?

Go back to the evidence: the handover record, the time of the report, photos and any dashcam footage. Apply your written agreement. Record the dispute and how it was resolved, and take advice before any recharge.

# What happens to damage found when someone stops working with us?

Compare the van against the last handover record and take dated photos at return. Any cost follows the written agreement and the evidence. Record the outcome on the vehicle file.

# Is a parking or traffic penalty the same as damage?

No. A penalty charge notice is a separate process with its own deadlines. Keep it on its own record; our guide to managing PCNs covers intake, driver assignment and appeal or payment.

# Should we keep dashcam footage?

Keep footage relevant to an incident with the damage record, and delete the rest on a set schedule. The ICO, in guidance it says is under review following the Data (Use and Access) Act, says you must provide sufficient privacy information, for example signage in the vehicle, and make clear who the controller is.

# Sources

• Road Traffic Act 1988, section 170, legislation.gov.uk.
• Employment Rights Act 1996, section 13 and section 230, legislation.gov.uk.
• HMRC, Self-billing (VAT Notice 700/62), GOV.UK.
• HMRC VAT Supply and Consideration manual, VATSC06190 and VATSC05910, GOV.UK.
• ICO, Surveillance in vehicles, ico.org.uk.
• Employment status, GOV.UK; HMRC, CEST, GOV.UK.