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How to get an operator licence

#haulage companies #owner drivers

Our step-by-step guide to getting your operator licence, including requirements, application steps, and ongoing compliance.

Getting an operator licence for HGVs

Getting an operator licence is the first step for anyone wanting to become a HGV owner-driver in the UK, as it lets you legally run a haulage business using large vehicles.

In this guide, we’ll take you through each of the steps for getting your operator licence, including the different types of licences, the required paperwork, where to submit your application, and how to maintain it once you’re up and running.

What we’ll cover

What is an operator licence?

A ‘goods vehicle operator’s licence’, also known as an ‘O licence’, is a legal requirement for anyone who wants to start a haulage company using Heavy Goods Vehicles (HGVs), and shows that you meet specific standards and can run your business safely.

The operator licence depends on your truck size, and applies to vehicles over 3.5 tonnes as the gross vehicle weight (GVW), which includes all HGVs, articulated lorries, and larger rigid lorries.

When applying for an O licence, there are a few fees involved:

If you need to make changes to your licence in the future (e.g. you need to add more vehicles), there’s a £257 fee.

How to get your operator licence

1. Determine the type of licence you need

Before applying, decide which type of licence suits your business. 

2. Meet the operator licence requirements

To get an operator’s licence, you need to meet several conditions. You need to show that you are of good repute, have sufficient financial standing, possess professional competence, and have access to a haulage yard. 

This means you need to be trustworthy, have enough money to run your business, and know how to operate an HGV business safely.

You’ll need a few documents to prove you meet these O licence requirements.

For financial standing, you might need:

For good repute, you must provide:

To prove professional competence, you’ll need:

As part of your application, you must have access to a suitable haulage yard. This yard is where your vehicles will be parked, maintained, and inspected. You need to provide evidence of your yard’s location and its adequacy for your operations, including:

You’ll need an operator’s licence for each traffic area where you have a haulage yard, or ‘operating centre’. The full list of traffic areas is available on the GOV.UK application page. 

Make sure you select the correct one based on your yard’s location, as this ensures you comply with regional regulations and operate within the legal boundaries of your traffic area.

3. Completing the application

You’ll need to apply for your HGV operator’s licence through the GOV.UK website. 

Fill out the application form carefully, and include all the required documents like your proof of financial standing and maintenance arrangements. 

Double-check everything before you submit to avoid delays.

4. Advertising your application

Believe it or not, you’ll need to advertise your application in a local newspaper. This is a public notice letting people know about your plans to operate an HGV business. 

Include details of where and when you plan to run your business. After the ad runs, submit proof of advertisement with your application. This step helps keep the process transparent.

Think of this as a charming nod to the olden days. Even in the age of the internet, the law insists you advertise in the local paper. It might seem outdated, but it’s still a requirement. 

So, grab your copy of the local paper and let the community know about your new venture!

5. Awaiting the decision

Once you’ve submitted your haulage licence application, you’ll have to wait for a decision from the Traffic Commissioner. 

They may request more information or call you for a public inquiry. Be prepared to answer questions and provide additional documents if needed. 

If your application is refused, you can appeal the decision.

Operator licence vehicle disc
Once approved, you’ll receive a disc that you can attach to your windscreen.

Maintaining your operator licence

Compliance with ongoing requirements

After you get your owner operator licence, you or your company’s transport manager will need stick to certain rules and regular checks, including:

These steps keep your licence in good standing, and ensure you pass DVSA roadside inspections if they happen.

Renewing your haulage licence

Operator licences aren’t forever. You’ll need to renew yours every 5 years. 

Keep track of the renewal dates and prepare the necessary documents in advance. This includes updated financial statements and proof of ongoing compliance with safety standards. Missing the renewal deadline can disrupt your business operations.

Prepare the following for renewal:

Updating your O licence

If you need to make changes to your licence, like updating addresses, changing named drivers or even adding new vehicles, you’ll need to pay a £257 fee.

Tips for getting your operator’s licence quickly

To speed up the process, avoid common mistakes. Make sure your application is complete and accurate, because missing information can delay approval. 

Consider seeking professional help if you’re unsure about any part of the application. Specialists can guide you through the process and help you meet all requirements.

Join HX to get haulage jobs

Once you have your haulage licence, joining the Haulage Exchange (HX) can help you find reliable haulage contracts quickly. 

HX connects you with thousands of transport companies across the UK and Europe, and by using our real-time freight exchange, you can see live loads, bid on them, and secure jobs fast. We also integrate leading tools for managing your fleet, tracking vehicles, and handling invoicing, saving you time and reducing admin tasks.

Joining HX gives you a competitive edge in the haulage industry. You can always find work, build lasting relationships with shippers, and grow your business sustainably. Start using HX today to take your haulage business to the next level.

Conclusion

Getting an operator licence is your first step towards a successful haulage business. Start by understanding what type of haulage licence you need. Meet the necessary requirements and complete the application process carefully. Advertise your application, wait for the decision, and maintain your licence by following ongoing requirements.

By following these steps, you’ll be well on your way to building a thriving HGV business.

Remember, the O licence is your ticket to legally run and grow your business. Good luck on your journey to becoming a licensed HGV owner-driver!

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Frequently Asked Questions

What is the difference between a Standard National and a Standard International O licence?

A Standard National licence allows you to carry goods for hire and reward within the UK, while a Standard International licence lets you transport goods across borders within the EU and beyond.

Do I need an operator licence for vans under 3.5 tonnes?

No, an O licence is only required for vehicles over 3.5 tonnes GVW. However, vans used for hire and reward internationally may need a Van Operator Licence under new EU rules.

How much money do I need to show for financial standing?

You must prove you have at least £8,000 for your first vehicle and £4,450 for each additional vehicle. This can be in bank statements, credit facilities, or financial guarantees.

What are the rules for maintaining an O licence?

You must conduct regular vehicle checks, keep detailed maintenance records, ensure driver compliance, and follow health and safety regulations to keep your licence in good standing.

How long does it take to get an O licence?

The process usually takes 7 to 9 weeks, but this depends on whether your application is complete, if there are objections, and if a public inquiry is required.

Can I change my O licence after approval?

Yes, you can update your licence to add or remove vehicles, change operating centres, or amend transport managers. Each change usually incurs a £257 fee.

Do I need a transport manager for my operator licence?

A Standard National or International licence requires a qualified Transport Manager with a Certificate of Professional Competence (CPC). A Restricted licence does not.

A Government scheme to train thousands of HGV drivers has been extended again, meaning that haulage firms can save up to 90% of the cost of HGV driver training.

So, what are the HGV Skills Bootcamps and how can they benefit haulage companies?

Background

As most haulage firms will know, the UK suffers from a long term shortage of HGV drivers.

But industry and the government have made great strides in addressing the shortage – such as implementing Skills Bootcamps in HGV Driving, which have helped train thousands of people wanting to become a HGV driver. 

The HGV Skills Bootcamps are flexible courses of up to 16 weeks, giving people the opportunity to build up sector-specific skills. First launched in December 2021, the programme has been extended once again until February 2026, with the Government committing a further £50m in initial funding, with scope for further extensions. 

The Government-funded training is provided via nine pathways. Courses range from novice drivers looking to gain their HGV licence, to refresher courses and upgrades for current licence holders.

A lifeline for firms large and small

Cost is a major barrier to entry for new haulage drivers looking to enter the industry, and a significant outlay for any employers looking to upskill staff.

The cost of recruiting HGV drivers and training them is significant, especially if firms do not have the infrastructure to help. Training internally by buying new lorries and hiring instructors can be expensive, typically costing in the tens, if not hundreds of thousands of pounds.

Moreover, without knowledge or experience in running and managing training courses, firms may take longer to train new drivers. This inexperience increases the cost of training and further delays or disrupts services.

This government funding is therefore a lifeline for firms large and small. For large organisations, with over 250 employees, the Skills Bootcamps offers employers a 70% contribution to HGV driver training through the DfE funding. For small and medium enterprises (SMEs) with under 250 employees, a 90% subsidy is available through the scheme.

How many HGV driver training places are available?

The scheme will train and upskill thousands of employees across England to become HGV drivers over the next two years. 

For example, my firm, HGVC, has been awarded the maximum possible funding allocation of £10m to train 1,828 candidates over the next two years. 

HGVC will focus solely on supporting employers looking to upskill existing staff, via three pathways depending on the types of lorry:

  1. Helping novice drivers gain their Category C (rigid lorry) licence
  2. A Category C+E (articulated lorry) licence
  3. or helping those with a Category C licence upgrade to a Category C + E.

This will include businesses across all sectors, including transport and logistics, retail, waste & recycling, agriculture, construction & engineering, local government, utilities and more. 

The benefits of growing your fleet with new drivers

For large and small employers, this is a major opportunity to upskill their staff with a significant subsidy from the Government.

One example of a business taking advantage of the scheme is GXO, a world leader in providing cutting-edge logistics solutions for multinational companies and blue-chip market leaders. 

GXO needed a swift response to a request from customer Costa Coffee to upskill over 150 van drivers from a Class B to a Class C licence in a short time. Costa Coffee required training in Manchester, Leeds, Willand, West Thurrock, Feltham and Avonmouth due to a customer demand relating to increased weights on deliveries and fleet changes. 

GXO opted to outsource some of this training to HGVC, for a fully managed service making use of the HGV Skills Bootcamp funding available from the UK Government. HGVC was able to immediately onboard and book drivers for every element of licence acquisition, make use of government funding and offer training in locations near the driver’s base, via its network of training centres.

As their UK Driver Academy Manager, Dan Beaufoy said of the scheme:

“This has been a great process and we’re very happy with the results. HGVC assumed the responsibility for all aspects of the training which meant that we could focus on our customer. There’s funding there to be used and this is a great opportunity for businesses in our sector.”

How to apply for HGV driver training

The extended Skills Bootcamps in HGV Driving went live on 1 February 2024. HGVC’s scheme is open to any businesses looking to upskill their existing staff.

The training courses are available at 60 locations across the country. Employers can apply at www.hgvc.co.uk/bootcamp.

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In the UK, many freight forwarders work closely with couriers and truck drivers to move goods by road. With so much that can go wrong on the road, it’s super important to have a backup plan. This is where freight forwarder insurance comes in handy. It’s like a safety blanket, ready to protect against unexpected accidents and damages.

What we’ll cover

What is freight forwarder insurance?

Freight forwarders facilitate the transportation of goods mainly by road, but also through sea, air, and rail. Freight Forwarders Liability insurance (FFL) is tailored to shield these forwarders from unexpected damages to cargo until it’s safely delivered. 

This kind of coverage is valiable, safeguarding forwarders from potential claims in the event of lost or damaged shipments that are out of their direct control.

Why opt for freight forwarder insurance?

Accountability is a key term in the world of freight. From the moment goods are handed over, the freight company is responsible for its safety. 

There have been instances where unforeseen events, like harsh weather conditions or mishandling, led to significant cargo damage. 

Remember the Ever Given container ship that ran aground in the Suez Canal in 2021? It blocked one of the world’s busiest waterways for six days, causing massive disruption in global trade, affecting the supply chain, and leading to hundreds of claims for damage to goods, late delivery, and contractual penalties.

With high compensation amounts at stake, insurance for freight forwarders becomes vital. Freight forwarder insurance alleviates the financial burden on the company, offering coverage against these kinds of unexpected setbacks.

What’s covered under freight forwarder liability insurance?

The specifics of the insurance may vary, but typically, it includes:

During the claim process, the insurer evaluates:

Choosing your freight forwarder insurance

1. Identify your needs:

The first step in the process is to gain a clear understanding of your shipment requirements. The specifics of insurance for freight forwarders can vary significantly based on several factors:

2. Examine inclusions and exclusions:

Understanding the full scope of your Freight Forwarders Liability insurance policy is vital:

3. Verify insurer credibility:

Choosing a reputable insurer is important:

Conclusion

Shipping goods can be full of surprises, from sudden storms to unexpected world events. But with the right freight forwarder cargo insurance, you can feel more at ease, knowing that your customers’ freight and your money are safe. 

If you’re unsure or have questions, just chat with your insurance company. They’re there to help you out, every step of the way.

Once you’re set up, you’ll need subcontractors to deliver your freight. Haulage Exchange is the UK’s largest freight forwarders network with over 50,000 verified vehicles available at a moment’s notice, enabling you to meet ever-changing customer demand and grow your freight forwarding company.

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