March/April Issue 60 - Flipbook - Page 13
fail to meet the financial standing requirements risk having their Operator’s Licence
revoked by the Traffic Commissioner.
NEWS
The availability of finance is a continuing obligation throughout the lifetime of the
Operator’s Licence. It will be specifically checked at the application stage (for new licences
or variations to existing licences), the five-yearly renewal/continuation of the Operator’s
BEWARE! IT’S MUCH MORE THAN A FORM-FILLING
EXERCISE - O-LICENCE APPLICATION AND VARIATION
Licence or if an operator is called to Public Inquiry – but can be checked at any time.
We are seeing an increasing number of operators who are failing to satisfy the financial
standing requirements or who simply do not appreciate how financial standing is assessed
and/or the sources of funds that will be acceptable.
Need to apply for or vary an operating
licence? Our specialist team undertakes
many applications and variations every week
and can do this for a fixed fee. Let us take
you through what to expect and some of the
things that can go wrong.
All operators (with some exceptions) require
an Operator’s Licence to be able to operate
HGV and PSV vehicles.
You may find yourself needing to make an
application for an HGV or PSV Operator’s
Licence, whether it be an application for a
new licence or to vary your existing licence.
Any major changes to your licence such
as an increase in vehicles or trailers and
changes to any operating centres will also
require an application to be made.
There are a number of common obstacles
that you may encounter, which could delay
or jeopardise you getting the licence at all.
Common Obstacles
Financial Standing – Where do you
stand?
The law requires an operator to be
of the appropriate financial standing.
Operators who fail to meet the financial
standing requirements risk having their
Operator’s Licence revoked by the Traffic
Commissioner.
The 2020 financial standing figures are as follows:
Licence Type
Standard
First vehicle
Each additional vehicle
thereafter
Restricted
First vehicle
Each additional vehicle
thereafter
Goods Vehicles
Public Service
Vehicles
£8,000
£8,000
£4,450
£4,450
£3,100
£3,100
£1,700
£1,700
For £99 +VAT per entity, we will calculate your financial standing.
financial standing requirements or who
simply do not appreciate how financial
standing is assessed and/or the sources of
funds that will be acceptable.
Operator’s Licence – enters Administration
and sets up a new company with either
identical directors and shareholders,
or common links and then makes an
application for a new Operator’s Licence
Opposition and Environmental Issues – If in the name of the new company. These
your application attracts statutory objection, are sometimes referred to as “phoenix
this could delay the application process.
companies”.
Representations and objections can only
be valid in certain circumstances and the
Some other key issues – Some other
criteria is limited in this regard. Applicants
key issues are any previous licence and/or
are usually required to provide information
financial history, issues with the proposed
further about the site. A solution then needs transport manager and their working hours,
to be found which satisfies all parties. The
lost repute and PMI frequencies.
same applies to sites where there have been
previous environmental issues.
Where can I get help?
Sole Trader, Partnership or Limited
Company – Quite a common issue for
applicants of new Operator’s Licences,
but for existing licence holders as well,
is operating under the wrong entity. This
commonly occurs where a sole trader or
partnership incorporates into a limited
company but does not make an application
for a new licence and continues to operate
under the existing sole trader or partnership
licence.
The availability of finance is a continuing
obligation throughout the lifetime of the
Operator’s Licence. It will be specifically
checked at the application stage (for new
licences or variations to existing licences),
the five-yearly renewal/continuation of the
Operator’s Licence or if an operator is called
to Public Inquiry – but can be checked at
Administrations & Liquidations –
any time.
Applications made as a result of an
Administration or a Pre-Pack can be more
We are seeing an increasing number of
complicated. This typically occurs when
operators who are failing to satisfy the
a company – which is the holder of an
We have a team dedicated to advising
operators and preparing and making
licence applications on their behalf. They
understand the Operator’s Licencing
regime and the expectations of the Traffic
Commissioner. Our team does this day in
and day out and therefore has a wealth of
experience to pre-empt and solve issues
early and to make the process as smooth as
possible and take the stress off the operator,
so please feel free to give us a call for a no
obligation chat about your business.
For all enquiries please contact our
office on 01254 828 300 or email
applicationsteam@backhouses.co.uk
FINANCIAL STANDING - INCREASED LEVELS FROM JANUARY 2021
From 1 January 2021, financial standing
levels for Standard Operator’s Licence
holders will increase slightly to £8,200 (from
£8,000) for the first vehicle and £4,550 (from
£4,450) for each subsequent vehicle. The
Senior Traffic Commissioner has updated
Statutory Document No. 2 “Finance” (which
can be accessed here: https://assets.
publishing.service.gov.uk/government/
uploads/system/uploads/attachment_data/
file/933471/Stat_Doc_2_Finance_-_
Version_11.pdf) to reflect this change. The
levels for Restricted Operator’s Licence
holders remain unchanged (at £3,100 for the
first vehicle and £1,700 for each subsequent
vehicle).
If you are unable to satisfy financial
standing, the conditions of your Operator’s
Licence oblige you to notify the Traffic
Commissioner of this. We can assist you
in making the relevant notification and
requesting a period of grace to provide you
with the much-needed breathing space to
get your HOUSE in order. If you are unsure
if you meet the requirements or just want to
check for peace of mind, we can assess this
for you from £99 + VAT per entity.
For further advice, please contact our
Regulatory Team on 01254 828 300 or
regulatory@backhouses.co.uk
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