What is an operator license and how can you get one?
Are you planning on starting your own transportation business? If so, you need to have an operator’s licence. The process of applying for an O licence may seem complicated but we take you through who needs an O licence, the types of O licence, and how to apply for one.
TIMOCOM can help you find work once you get up and running with our freight exchange. This helps you to quickly find goods to carry from vetted partners. Get your free trial and access to the TIMOCOM Road Freight Marketplace today. Fill out your business details via the form below.
What is an O licence?
An O licence or goods vehicle operator’s licence permits you to operate goods vehicles in Great Britain. It is issued by the Traffic Commissioner, and its purpose is to ensure the safety of using goods vehicles. An HGV O licence is for a heavy goods vehicle that weighs more than 3.5 tonnes and has additional requirements.
Who needs an O licence?
Anyone who drives a goods vehicle which weighs more than 3.5 tonnes gross plated weight to carry goods to trade or for business needs an operator’s licence. This includes if the vehicle is a vehicle and trailer combination. If you are transporting goods in the EU, you will also need an O licence for light goods vehicles between 2.5 and 3.5 tonnes.
This applies to both Great Britain and Northern Ireland. However, if you carry your own goods in a vehicle of 3.5 tonnes or less and operate within the UK, then you may not need an operator’s licence.
Operator’s licence exemptions
There are numerous exemptions from an operator’s licence, some of these include:
When you only carry out national journeys
Vehicles used by local authorities for civil defence purposes
Vehicles used by a highway authority
Emergency vehicles such as the police
Vehicles used by water, electricity, gas and telephone companies for emergencies
Tractors when used for specific purposes.
Although a recovery vehicle falls under a vehicle which lifts, tows, and transports a disabled vehicle and would be exempt, this does not include returning a vehicle to a customer after repair which does require a standard operator’s licence.
What are the types of O licences?
There are three types of O licences for light goods vehicles. They are restricted, standard national, and standard international.
Restricted
For this licence you may carry your own goods but not other people’s.
Standard national
This type of licence means you are carrying your own goods in the UK or abroad or other people’s goods in the UK.
Standard international
For this licence you can carry your own goods and other peoples in the UK and abroad.
Areas requiring O licence
There are eight traffic areas that each require their own O licence if you have an operating centre in them. These areas include:
North East England
North West England
West Midlands
East of England
Wales
West of England
London and South East of England
Scotland
Operator’s licence requirements
There are several requirements needed to be permitted an operator’s licence. These are:
Be fit to hold a licence, taking into account any convictions or conditions
Have sufficient financial resources or be of financial standing
Have satisfactory facilities and have arrangements in place for maintaining vehicles to be serviceable
Arrangements for securing compliance with drivers’ hours rules
Arrangements for ensuring vehicles are not overloaded
Ensuring drivers have licences and training
There are additional requirements for heavy goods vehicles. You must specify an operating centre with the capacity for heavy goods vehicles.
There are also additional requirements for standard licence holders, these are to have an effective and stable establishment. This means you must have a suitable business address.
You must also be of good repute, have financial standing, and professional competence.
What is classed as an operating centre?
An operating centre must meet certain requirements. It needs sufficient off-street parking for all vehicles, so it needs to be the right size, have safe access, and be in an environmentally acceptable location.
You will need to put an advertisement in a paper that circulates in the location of the proposed operating centre to see if anyone objects to your parking a vehicle in this location. They will have 21 days to do so which can hold up the process if anyone does object. This, however, does not apply to light goods vehicles.
How much finance do you need to have to apply for an O licence?
When applying for an O licence, you need to prove you have enough finance to maintain vehicles. This amount starts at £8,000 for the first heavy goods vehicle or £1,600 for a light goods vehicle. Each additional vehicle requires an additional amount.
Types of vehicles for O licence
You will need to decide on the types of vehicles you want to drive and how to purchase them. The types of vehicles you may want to use include passenger vehicles, light goods vehicles weighing 2.5 to 3.5 tonnes or heavy goods vehicles weighing more than 3.5 tonnes, or commercial vans.
You can also use a trailer. You should also decide on how to invest in these vehicles such as leasing, hiring, purchasing, or financing them. All have their pros and cons, and you will need to weigh your options, and which are most suitable for your business.
How much does it cost to get an O licence?
There are several fees you need to pay for to get your O licence, including:
A one-off fee paid on applicable (£257)
A fee for the issuing of the licence (£401)
A fee for the issuing of an interim licence, if needed (£68).
There is an ongoing continuation fee every five years which is £401. If you need to make any big changes to your licence, then you need to pay £257 to do so.
How to apply for an O licence
O licence applications are done online through the Vehicle Operator Licensing system. A case worker will be assigned to you and are generally helpful if you have any questions or want to track the progress of your application.
How long does it take to get an O licence?
The official site states it can take up to 7 weeks to get your full O licence, but it can be sooner than this if there are no issues with your application.
How to get an O licence renewal
An O licence is valid as long as you pay your continuation fee every five years and ensure your licence has the correct information.
What happens if you fail to display an operator’s licence?
It is a serious offense to fail to display your operator’s licence disc which could lead to the Traffic Commissioner revoking or suspending your licence or limiting the amount or type of vehicles you can operate.
You could also be fined up to £5,000, your vehicle impounded or disqualified from holding a licence in the future.
How TIMOCOM can help you find work
TIMOCOM provides many resources and support to help you find work once you have your O licence. TIMOCOM’s freight exchange gives you access to up to 1 million freight and vehicle space offers daily as well as vetting potential partners and making it quicker to process transport orders. It also includes Messenger, which lets you communicate with potential partners quickly, easily, and securely. Start to connect with logistics partners
With TIMOCOM’s flat rate, there are no hidden costs or limits to the service, allowing you to maximise your profits. You can also optimise your routes with real-time tracking, avoid empty runs, and recover an unpaid invoice.
Tram Trinh Thanh
Marketing Manager Northern Europe
