Do I need a bus operator licence?
- Minibuses and larger vehicles
- Small vehicles suitable for carrying 8 or fewer passengers
- What special rules apply to buses?
- Is a vehicle still a bus even when it is not carrying passengers?
The answer depends on the size and use of the vehicle. There are special exceptions for school buses owned and operated by local education authorities and for vehicles run under permits (see Voluntary Community Transport Permits for additional information).
Minibuses and larger vehicles
If the vehicle is suitable for carrying 9 or more passengers (as well as the driver) and does so for hire or reward it is a public service vehicle.
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Small vehicles suitable for carrying 8 or fewer passengers
• if you give lifts in a car, or take part in a social car scheme run by a local authority, you can charge people enough to cover your running costs (plus general wear) and your car will still be treated as a private vehicle, not a taxi, hire car or PSV;
• if you run a taxi or hire car business and charge for the hire of the vehicle as a whole, you will not be charging separate fares so your vehicle will not be a PSV - you will need a taxi or hire-car licence if a licensing system is in force within the area you wish to operate. You will not need a PSV operator’s licence;
• if you have a licensed taxi or hire-car, you can use it to carry passengers at separate fares without it becoming a PSV, as long as all the passengers book in advance* and agree when they book to share the cost. Also local authorities may start taxi sharing schemes operating from authorised places (Slightly different arrangements will apply in Scotland. Contact the local licensing authority for advice). Here, too, the licensed taxi will not be classed as a PSV, so no PSV operator’s licence will be needed;
• if you want to carry passengers at separate fares in any other way you will need a bus operator’s licence even for a vehicle with no more than 9 seats. But you should note that: if you have a taxi licence and want to use the taxi on a local service, like a bus, you are entitled to a special PSV licence, which is easy to get (see Special PSV O Licences); if you only want to operate one or two vehicles neither of which has more than 9 seats, you can apply for a restricted bus operator’s licence which is easier to get than a standard licence (see below).
Separate fares means an individual payment by each passenger to the driver, conductor or agent of the operator for the journey undertaken. Payment may be made on the PSV or in advance of the journey at a sales point (ticket machine, newsagents, bus station or office). Payment may also be by indirect means (in respect of other services such as concert tickets where travel is included). Where the vehicle is hired as a whole and individual passengers make no contribution, such as for transporting children to and from school, separate fares are not involved.
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What special rules apply to buses?
All regulations, and guidance can be found in Lorry and Bus Operator Search
.
Is a vehicle still a bus even when it is not carrying passengers?
If the vehicle is parked in a depot or garage (or is being driven between two depots or is temporarily laid up for any reason) it is still a bus. It only stops being a bus when its use as one has been permanently discontinued; for example, if you take a bus out of service altogether and adapt it for some other use (such as driver training).
There is an exception for vehicles which are sometimes used as taxis and sometimes as buses under a special PSV operator’s licence. These vehicles are only buses when they are used on local services, otherwise they are taxis and must run under taxi rules.
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Page last updated: 22/11/2005