How to research passenger transport licensing

To carry passengers for payment (known as 'hire or reward') in the UK, you must hold either a Private Hire Vehicle (PHV) operator licence from your local council or a Public Service Vehicle (PSV) operator licence from the Traffic Commissioner. The path you take depends entirely on the size of your vehicle and how you charge your customers. Failing to secure the correct licence can lead to your vehicle being impounded and your insurance being voided.

The Two Main Licensing Routes

Passenger transport licensing is split into two distinct categories based on the capacity of the vehicle and the nature of the service:

1. Researching Private Hire Licences

If you plan to run a service using cars or small MPVs (up to 8 seats), you will usually fall under Private Hire regulations. These are managed locally, and rules can vary significantly between different council areas.

• Contact your local licensing office: Visit your local council’s website and look for 'Taxi and Private Hire Licensing'. This is where you will find their specific 'Policy and Conditions' document.
• Vehicle Age and Specs: Most councils have strict rules on how old a vehicle can be when it is first licensed and what its minimum engine size or emissions standard (e.g., Euro 6) must be.
• The 'Three-Tier' Requirement: To operate a Private Hire business, you generally need three separate licences: an Operator Licence (for the business), a Vehicle Licence (for the car), and a Driver Licence (for the person behind the wheel).

2. Researching PSV Operator Licences

If you intend to use a minibus (9–16 seats) or a coach (17+ seats) for business, you are moving into the realm of Public Service Vehicles. This is a national system regulated by the Traffic Commissioner.

• Restricted vs. Standard: A 'Restricted' PSV licence is for those carrying passengers as a side-hustle (e.g., a hotel shuttle), while a 'Standard' licence is for those whose main business is passenger transport.
• Financial Standing: You must prove you have a specific amount of money available in a bank account to keep your fleet maintained. This amount is set annually by the government.
• Good Repute: The Traffic Commissioner will check your background and any previous convictions to ensure you are a 'fit and proper' person to run a transport business.

Note: If you are using a smaller vehicle (8 seats or fewer) but charging separate fares for specific routes, you may still require a PSV licence rather than a Private Hire licence. Always check the GOV.UK 'PSV Operator Licensing' guide to confirm.

Steps to Complete Your Research

1. Define your fleet: Decide exactly how many seats your vehicle(s) will have.
2. Identify your regulator: Determine if you need to talk to your local council or the DVSA/Traffic Commissioner.
3. Download the guidance: For PSV, search for the 'PSV437' guide on GOV.UK. For Private Hire, download the 'Licensing Policy' from your local council's website.
4. Check for local restrictions: Some cities have 'Clean Air Zones' (CAZ) or 'Low Emission Zones' (LEZ) that charge extra fees for older passenger vehicles.