Guide
Get an operator's licence for goods vehicles
How to apply for an O-licence to operate goods vehicles for business. Covers Standard and Restricted licences, financial standing, transport manager requirements, and ongoing compliance including tachographs and drivers' hours.
If your business operates goods vehicles over 3.5 tonnes gross weight, or uses smaller vehicles for hire or reward (carrying goods for payment), you need an operator's licence (O-licence).
Operating without a licence is a serious criminal offence with unlimited fines and possible vehicle seizure. The licensing system ensures operators are competent, financially stable, and operate safely.
Which licence type do you need?
Your choice of licence depends on how you use vehicles:
- Standard National: If you carry goods for other people for payment (hire or reward) within Great Britain
- Standard International: Same as National, plus international operations
- Restricted: If you only carry your own goods (not for hire or reward)
Key difference: Restricted licence holders don't need a transport manager with CPC, but cannot carry goods for payment.
Financial standing requirements
You must demonstrate you have enough money to maintain vehicles safely:
How to demonstrate financial standing:
- Bank statements from the last 28 days
- Certified annual accounts
- Financial guarantee from a bank or insurance company
You must maintain this financial standing continuously, not just when applying.
How to apply for an O-licence
Driver CPC requirements
Your drivers also need to be properly qualified. Professional LGV drivers must hold a Driver CPC:
Tachograph compliance
Most goods vehicles over 3.5 tonnes must have a tachograph to record driving time. You have strict duties around downloading and retaining data:
Drivers' hours rules
Drivers must comply with maximum driving hours and minimum rest periods:
Managing drivers' hours:
- Use tachograph analysis software to monitor compliance
- Plan routes and schedules to allow for legal rest breaks
- Train drivers on the rules and their responsibility
- Investigate and document any infringements
You as the operator are responsible for ensuring your drivers comply, not just the drivers themselves.
Dangerous goods (ADR)
If your vehicles carry hazardous materials, additional requirements apply:
Vehicle testing requirements
Enforcement and penalties
DVSA conducts roadside checks and operator premises inspections. Non-compliance has serious consequences:
Traffic Commissioner action
The Traffic Commissioner can take regulatory action against your licence:
- Formal warning: Recorded against your licence
- Conditions: Additional requirements attached to licence
- Curtailment: Reduction in authorised vehicles
- Suspension: Temporary loss of licence
- Revocation: Complete loss of licence
A Public Inquiry may be called if there are serious concerns about your compliance. These are formal hearings where you can be legally represented.
Geographic variations
Common questions
Do I need an O-licence for vans under 3.5 tonnes? Not normally. But if you're using smaller vehicles for hire or reward, you may need one. Check with the Traffic Commissioner.
Can I start operating before the licence is granted? No. You must not operate until your licence is issued. The application process can take 2-3 months or longer if a public inquiry is needed.
What is an operating centre? The place where vehicles are normally kept when not in use. You must have proper facilities and may need planning permission.
How long does an O-licence last? The licence is continuous, but you must apply for continuation every 5 years. You must also notify the Traffic Commissioner of any changes.