Transport & Logistics

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.

UK-wide
Guide summary

You need an operator's licence (O-licence) to use goods vehicles over 3.5 tonnes or smaller vehicles for hire. Apply online with proof of finances, a suitable operating centre, and a transport manager if required. Keep records of tachograph data and follow drivers' hours rules.

  • Apply for an O-licence if using goods vehicles over 3.5 tonnes or for hire
  • Choose between Standard (hire/reward) or Restricted (own goods only)
  • Show £8,000 for first vehicle + £4,450 each extra (Standard)
  • Hire a transport manager with CPC for Standard licences
  • Apply online via Vehicle Operator Licensing (VOL) system
  • Pay £257 fee + £402 per vehicle
  • Display a site notice for 21 days and publish in local paper
  • Download tachograph data every 28 days (driver) and 90 days (vehicle)
  • Follow drivers' hours rules (max 9 hours daily, 56 hours weekly)
  • Renew licence every 5 years (£492 Standard, £294 Restricted)
On this page
UK-wide

Related guides in Transport

Driver CPC Requirements

Understand Driver Certificate of Professional Competence requirements for HGV and bus drivers.

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.