Fleet manager’s essential guide to O licensing
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Published by Michellee Johnson
What is an operators licence?
An operators (O) licence is required by anyone carrying goods connected with a trade or business on the road where the vehicle has a gross plated weight of more than 3.5 tonnes or where the vehicle has no gross plated weight but an unladen weight of more than 1525kg.
The O licensing scheme is administered by the Vehicle and Operator Services Agency (VOSA) on behalf of Traffic Commissioners. The UK is divided into eight traffic areas an each is managed by a different Traffic Commissioner who is an independent person appointed by the Secretary of State for Transport.
The purpose of the O Licence scheme is to ensure that vehicles, and the operating centres where they are kept, are run safely and with due consideration for the environment.
Who needs an O licence?
An O licence must be held by the user of the vehicle, even if you are only using the vehicle for a short period of time. You are considered the ‘user’ if:
- You are the driver and are the owner, or the vehicle is in your lawful possession under and agreement for hire, hire purchase or loan
- The driver is your servant or agent
How many types of O licence are there?
O licences can be issued in three formats:
- Restricted - enables you to carry your own goods in the course of the trade of your business
- Standard national - enables you to carry your own goods and to carry goods for other people for hire or reward in Great Britain
- Standard international - enables you to carry your own goods and to carry goods for other people for hire or reward in Great Britain and internationally
You must not carry goods for other people for hire or reward on a restricted licence. If you do so, you could be fined and loose your licence.
I have more than one vehicle, how many O licences do I need?
Once issued, your O licence will authorise you to use a maximum number of vehicles and trailers.
When applying for an O licence you should remember to allow some extra vehicles to take into account any potential increases in business and emergency vehicle requirements, such as breakdowns. These vehicles are often referred to as ‘the margin’. Vehicles being used on the margin can be used for a maximum of one month.
All your vehicles must be listed on your licence. You can add and remove vehicles but can not exceed the maximum number of vehicles authorised.
If you want to use more vehicles than your O licence authorises this would require a major variation to your licence and you would need to complete form GV81 and return it to your Traffic Commissioner no less than nine weeks before you want to use the vehicles. The vehicles can not be used until a varied licence is issued, unless interim authority is granted.
What criteria must be met to obtain an O licence?
In order to obtain an O licence you must, amongst other requirements, satisfy the Traffic Commissioner that you and any partners or directors:
- Are fit to hold a licence
- Have sufficient maintenance provision in place
- That your operating centre is suitable
- That you have adequate arrangements in place to ensure drivers hours and overloading rules are adhered to
If you or any of your partners, directors or transport managers are convicted of an offence after your O licence is sent in or issued you must inform the Traffic Commissioner. The Traffic Commissioner will take into account any convictions that you, any partners or directors, transport managers, servants or agents have had both in the UK and abroad when considering your licence application.
As part of your licence application you must satisfy the Traffic Commissioner that you will keep your vehicles in a fit and serviceable condition at all times. If you do not intend to carry out the work yourself, the Traffic Commissioner will want to see your maintenance contract or letter of agreement with a garage.
How do I apply for an O Licence?
An application pack for the O licence is available from VOSA by calling 0870 606 0440.
Any application should be made no less than nine weeks before the licence is needed. If a licence is required urgently, an interim licence can be applied for. However you can only apply for an interim licence if you have already submitted a full application. It is also important to note that the issuing of an interim licence does not mean that your full licence will necessarily be approved.
Any application must legally be advertised in your local newspaper, circulating in the areas which you will be operating in. Anyone who occupies a building or land nearby has the opportunity to object to the application, if they wish to do so.
How long is an O licence valid for?
Under the continuous licensing system introduced in 1996, once granted an O licence, it is for life unless it is surrendered or you fail to pay the fees or break its terms and conditions. However the Traffic Commissioner has the power to curtail, suspend or take away your licence at any time if there is any breach of the law.
Your O licence could be withdrawn or suspended for many reasons. This includes, but is not limited to:
- The licence holder no longer meets the requirements of good repute, financial standing or professional repute
- The licence holder has two convictions in five years for using a goods vehicle on a restricted licence for carrying goods for hire or reward
- Any of the statements in the application prove to be false
- The licence holder has not kept any undertaking which was given when the licence application was made
- The licence holder is convicted of certain offences
In serious cases the Traffic Commissioner may disqualify a person, partner or director of a company from holding an O licence in his or any other Traffic Area. In this instance, any licence held in a different Traffic Area will also be suspended from the date of the disqualification order.
Where can I get further information?
Read VOSA’s Goods Vehicle Operator Licensing Guide for Operators for more information.
This is intended as a guide only and no major decisions should be made on the basis of the information provided. While every effort has been made to ensure the accuracy of the content, you are advised to check that the information given is up to date. Hitachi Capital cannot be held responsible for any claims arising from action taken as a result of information given which has not subsequently been verified.
