Minibus operator licencing and start ups

Operating minibuses with the intention of collecting fares from passengers, is referred to as "Hire and Reward", Therefore in one form or another you will need an operators licence or permit.

However, you will first need to determine what type of operation you currently or intend to manage as this will differ depending on you or your organisations circumstances.

A commercial business is one which operates a minibuses either as its core or minor business activity and does so for personal or commercial profit, known as "hire and reward". Similar businesses can be found under the "coach hire" or "private hire" section of the yellow pages and advertised to the general public or, for example, a privately owned nursing home that charged their residents a fee which indirectly includes the use of the minibus.

Other similar businesses activities which may fall into this category are:

• Nursery & Child care
• Private schools
• Hotels
• Businesses operating Courtesy buses

For these commercial businesses the minibus would need to operated under a restricted or full operator's licence (opens new window) issued by the local traffic commissioner. From April 2007 legislation will require a digital tachograph to be fitted to the minibus. Drivers will also need to check if they can legally drive a minibus under these conditions and abide by the drivers' hours regulations.

Many commercial business operate an employee transport service using their own minibuses. However, there are two separate types of operation here, So you must be very careful and know which type of operation you are running. if you are found to be operating a minibus without the appropriate operator licence the minibus owner and driver could be liable to prosecution.

Charging employees a fare to use the minibus...

A commercial business who charged their employees a fare to use the minibus would be classed as "hire and reward", and therefore the minibus owner would need to apply to the local traffic commissioner for a restricted or full operator's licence (opens new window). From April 2007 legislation may require the fitting of a digital tachograph to the minibus. Drivers will also need to check if they can legally drive a minibus under these conditions and abide by the drivers' hours regulations.

Provided transport to employees totally FREE of charge...

On the other hand if a commercial business bore the total cost of operating the minibus themselves and provided transport to their employees totally FREE of charge, then this would not be classed as "hire and reward". However you are advised to contact the local traffic commissioner to determine whether a restricted or full operator's licence PDF 225kb (opens new window) is required. From April 2007 legislation may require the fitting of a digital tachograph to the minibus. Drivers will also need to check if they can legally drive a minibus under these conditions and abide by the drivers' hours regulations.

Using the minibus during the day to transport customers...

If the minibus is being used at other times to transport customers in addition to providing FREE transport to employees. The transport for "customers" element of the operation would require the minibus owner to apply to the local traffic commissioner for a restricted or full operator's licence (opens new window). From April 2007 legislation may require the fitting of a digital tachograph to the minibus. Drivers will also need to check if they can legally drive a minibus under these conditions and abide by the drivers' hours regulations.

Most community transport organisations and charities operate minibuses for the benefit of their members or for people with a special transport need within their community. Special conditions and "Hire and reward" exemptions allow these organisations to operate minibuses and make a charge without having to apply for a full operator's licence.

For these community organisations and charities the minibus would need to operated under a section 19 permit issued by your local traffic commissioner , local authority or designated body. Drivers will also need to check if they can legally drive a minibus under these conditions and abide by the drivers' hours regulations.

Many schools operate their own minibuses for pupils. However, the type of licence or permit to operate the minibus would depend on the status of the school., So you must be very careful and know which type of operation you are running. if you are found to be operating a minibus without the appropriate operator licence the minibus owner and driver could be liable to prosecution.

Schools under the control of the local authority....

For these schools the minibus would normally operated under a section 19 permit issued by your local traffic commissioner , local authority or designated body. Drivers will also need to check if they can legally drive a minibus under these conditions and abide by the drivers' hours regulations.

Private schools...

Private schools which operated for commercial profit, would need to operate minibuses under a restricted or full operator's licence PDF (opens new window). issued by the local traffic commissioner. From April 2007 legislation will require a digital tachograph to be fitted to the minibus. Drivers will also need to check if they can legally drive a minibus under these conditions and abide by the drivers' hours regulations.