01254 828 300 
Financial Standing – Where do you stand?
The law requires an operator to be of the appropriate financial standing. Operators who fail to meet the financial standing requirements risk having their Operator’s Licence revoked by the Traffic Commissioner.
The availability of finance is a continuing obligation throughout the lifetime of the Operator’s Licence. It will be specifically checked at the application stage (for new licences or variations to existing licences), the five-yearly renewal/continuation of the Operator’s Licence or if an operator is called to Public Inquiry – but can be checked at any time.
We are seeing an increasing number of operators who are failing to satisfy the financial standing requirements or who simply do not appreciate how financial standing is assessed and/or the sources of funds that will be acceptable.
The 2026 financial standing figures are as follows:
| License Type | Goods Vehicles | Public Service Vehicle |
|---|---|---|
| Standard | ||
| First vehicle | £8,000 | £8,000 |
| Each additional vehicle thereafter | £4,500 | £4,500 |
| Restricted | ||
| First vehicle | £3,100 | £3,100 |
| Each additional vehicle thereafter | £1,700 | £1,700 |
Check how much you require using our calculator.
£99 +VAT per entity, we will calculate your financial standing.
Financial standing calculator
License type:
Number of vehicles
Total: £0
Do you know how your business meets this? If not, please contact the regulatory team on 01254 828300 or regulatory@backhouses.co.uk
“Their deep knowledge of transport regulations and genuine commitment to our case made all the difference. Thanks to their support, we kept our operator’s license with minimal conditions. We couldn’t have done it without them!”
Leading UK Haulier
All operators (with some exceptions) must hold an Operator’s Licence to operate large goods and passenger-carrying vehicles.
If you’re applying for a new HGV or PSV Operator’s Licence or seeking to vary an existing licence (for example, by increasing vehicle and trailer numbers or making changes to operating centres or transport managers), an application is required.
Is it a form-filling exercise?
The operator licence regime is a crucial regulatory framework that ensures safety and compliance. As such, the application process is detailed and typically takes 6-8 weeks. Any missing information can cause delays of at least two weeks, often longer, as the application cannot be fully considered. It’s much more than a simple form-filling exercise. Our team has extensive experience dealing with the Office of the Traffic Commissioner, the Central Licensing Unit, and the VOL online licensing system.
What does the application involve?
The application requires details of your business, its directors, operating centres, authorisations sought, and maintenance provider information. You must also provide financial and licence history, along with details of any convictions (including speeding and fixed penalty notices).
Depending on the type of licence, you may need to submit an additional application for a transport manager and publish a public notice in a newspaper. This notice must be placed in a local newspaper near the operating centre to inform potential representors of the application. Financial documentation will also be required to show that you have the necessary funds to operate and maintain your vehicles.
Get the process right first time
Navigating the licensing process can be complex, but you don’t have to do it alone. Whether you’re applying for a new Operator’s Licence or making changes to an existing one, our expert team is here to guide you every step of the way.
Common Obstacles
Opposition and Environmental Issues
If your application attracts statutory objections, it could delay the process. Valid representations and objections are only accepted under certain circumstances, and the criteria are limited. In such cases, applicants may need to provide additional information about the site, and a solution must be found that satisfies all parties. This also applies to sites with previous environmental issues.
Sole Trader, Partnership or Limited Company
A common issue for new Operator’s Licence applicants, as well as existing licence holders, is operating under the wrong entity. This often happens when a sole trader or partnership incorporates into a limited company but fails to apply for a new licence, continuing to operate under the original sole trader or partnership licence.
Administrations & Liquidations
Applications following an Administration or Pre-Pack process can be more complicated. This usually occurs when a company holding an Operator’s Licence enters Administration, sets up a new company with similar directors or shareholders, and applies for a new licence under the new company’s name. These are sometimes referred to as “phoenix companies.”
Other key issues
Additional challenges may include issues with previous licence or financial history, concerns regarding the proposed transport manager and their working hours, loss of repute, and issues with Planned Maintenance Intervals (PMI) frequencies.
