2. Create a Vehicle Operator Licensing account

Creating your account will require you to establish a username and password, so ensure you remember these as you will need them every time you return to the system.  You should not share these details.

You are going to need some time to complete the full application but you can save as you go and come back to it.

4. Advise what entity is applying for the licence.

You can apply for a licence as a:

• Sole Trader: you are operating the licence, it will be in your name.
• Partnership: you and your partners are operating the licence
• Limited Liability Partnership: a structure similar to a partnership but where liabilities are limited in a way similar to a limited company.
• Limited Company: licence in the name of your company
• Other: such as a charity or trust etc

Whichever entity you choose, the funds (noted later) that you require to hold for each vehicle in your application need to be in the name you choose here.  So if one director has a large personal wealth, but the company is cash poor, and you apply in the name of the company, it is unlikely (but not impossible) that the criteria for financial soundness will be reached.

6. Be ready to state you have an Operating Centre suitable for your proposed operation.

What is an Operating Centre (OC)?

For a PSV operation, the Operating Centre is where the vehicle is normally kept when not in use. Unlike an HGV operation, there is no check on the environmental suitability of the OC in the application stage (although there could potentially be objections by those allowed to object to an application).

The application form requires that you provide an address for your OC and evidence that you have permission to use it as such.  We applied for an OC where there would only be 1 minibus normally kept.

The expectation is that an OC will be:

• Large enough to drive into in forward gear.
• Have sufficient space to manoeuvre the vehicle in the “yard”.
• Have 1m clearance around it to conduct safety inspections and Daily Walk Around checks.

♦ TOP TIP:

To show that you have an OC that meets the criteria, and based on our experience, we  would recommend you can save time on follow up questions by attaching supporting documents that show:

• Satellite images of where the proposed site is (from online mapping tools).
• Satellite images showing that the vehicle can be driven directly from the public road onto the site, in forward gear, and can turn in the facility with no issues.
• Satellite images of the proposed site with dimensions on the images that show how your vehicle(s) will fit into the site safely.
• On that document clearly highlight that, when parked, all the vehicles have a 1m clearance around them where the driver will have space to conduct the Daily Walk Around Check and identify any defects.
• You have permission to use the site, if it is not your own site.

We read that residential sites were unlikely to be approved, which makes sense given the criteria.  However if you meet the criteria then success is more likely, even if it is a residential site. 

Applications from others demonstrated a range of sites that received approval as OC.  Even the sites we thought had limited chance of approval, were approved.  So we think it is important that the details are provided up front and that they are clear and you are honest.

8. Add details of your Vehicles

For a PSV operation you do not need to have obtained your vehicle to apply.  There is an option to select “No” for supplying vehicle details.  Once you obtain your vehicle these details can be added.

You will have to detail the type of vehicle(s) you will be operating and then show that you have financial standing for these vehicles.  In our case this was one minibus and we needed to supply evidence that we had £8,000 in a bank account available

♦ TOP TIP:

You can upload a range of documents to evidence you have access to these funds and we recommend showing that you have access to more than the minimum and make a statement to the effect, if you have not purchased your vehicle, that you will still have access to those funds when you begin your operation

There is a ton of debate out there about who the funds need to be in the name of and in what form is best to show that you have the funds.  Our experience suggests that the money should be lodged in an account in the name of the licence applicant (a person if sole trader, or company name if limited company).  Other forms of evidence such as overdrafts, credit cards or invoice financing accounts can lead to other questions that may delay a decision.

10. Other Top Tips

1. When the TC considers all your evidence they may ask for your agreement to certain conditions being included in the licence. 

In our example our OC is small and can only take 1 minibus, so we agreed to not have any vehicle larger than 16 passenger seats operate out of our OC, perfectly reasonable. 

You may experience requests for other conditions, and they are usually standard cut and paste type conditions and it’s nothing personally targeted at you!

2.  If you are using a bank account to store your financial reserve per vehicle, and potential trade from, it is a good idea to open that early so it is an established account.  This can provide confidence that you have thought through and planned your operations well in advance of your application.

3. It is a good idea to provide a letter that outlines the kind of operation you are proposing.  This should include staffing levels, distances you are from the OC, how often you will be on site or your TM will be on site, what kind of contracts you will be operating etc. 

We provided information on a letter outlining our proposed operation so that our application could be seen in the context of our operation.  We have no feedback on whether that was useful or not, but it would seem to us that this is a sensible thing to do.  It speaks to your seriousness, your repute and provides a level of confidence that you will be an operator that will exceed their requirements.  A business plan would be the kind of thing that would be useful to upload, and a TM could help put one together.  Note though there are upload limits on the VOL (Vehicle Operators Licencing) system, so perhaps remove large images if there are any in the document.

4. Be prepared to pay the application fee at the outset.  This is currently set at £209 and is non-refundable, even if you are denied the licence…and you pay again on a reapplication, so it is worth ensuring you upload as much supporting information as possible at the outset.

5. Make the documents you upload both professional in appearance and in language.  Be fair, be honest and be respectful in your communications.  There is no point in time where being overly direct, offensive or defensive is useful or warranted.