Compare Operator Licence Types in Detail

When operating goods or passenger vehicles commercially in the UK, having the right Operator Licence (O-Licence) is not only a legal requirement — it’s the foundation of a compliant and efficient transport operation. But not all O-Licences are created equal.

In this article, we’ll take a detailed look at each type of Operator Licence, compare them across all critical areas (scope, cost, requirements, responsibilities, and more), and help you decide which one suits your business model best.

Operator Licence Overview: The Three Main Types

There are three primary types of goods vehicle Operator Licences in the UK:

1. Restricted Licence

2. Standard National Licence

3. Standard International Licence

The same structure exists for passenger transport using Public Service Vehicles (PSVs). In this article, we'll focus on goods vehicle O-Licences, but the key principles apply similarly to passenger transport.

Licence Type #1: Restricted Operator Licence

Best for: Companies transporting their own goods (not for hire or reward).

Key Features:

• Use your own vehicles to carry your own goods only

• No requirement for professional competence (CPC holder not mandatory)

• Ideal for small businesses that don't transport goods commercially for others

Examples:

• A bakery delivering bread to its own shops

• A construction firm moving its own equipment between sites

Licence Type #2: Standard National Operator Licence

Best for: Companies that want to carry goods for others in the UK.

Key Features:

• Permits hire or reward operations within Great Britain

• Requires a professionally competent person (i.e., a Transport Manager with a valid CPC)

• Subject to stricter compliance and financial standards

Examples:

• A haulage firm with contracts to deliver goods for retailers

• A courier company operating a fleet of 7.5-tonne vans nationwide

Licence Type #3: Standard International Operator Licence

Best for: Hauliers offering cross-border services across Europe and beyond.

Key Features:

• All the permissions of a Standard National Licence plus international work

• Access to ECMT permits and international trade corridors

• Full compliance with UK and EU transport regulations

Examples:

• A logistics provider operating from the UK to France and Germany

• An international removals company transporting household goods overseas

Side-by-Side Licence Comparison Table

Feature	Restricted	Standard National	Standard International
Carry own goods	✅	✅	✅
Carry goods for others (hire/reward)	❌	✅	✅
Operate internationally	❌	❌	✅
Transport Manager with CPC required	❌	✅	✅
Financial standing requirement	✅ (lower threshold)	✅	✅
Good repute required	✅	✅	✅
Maintenance and record keeping	✅	✅	✅
Application complexity	Low	Medium	High
DVSA/Traffic Commissioner oversight	✅	✅	✅ (increased scrutiny)

Financial Standing Requirements (as of 2025)

You must show you have sufficient financial resources to operate safely.

Licence Type	First Vehicle	Each Additional Vehicle
Restricted	£3,100	£1,700
Standard National / International	£8,000	£4,500

Failure to maintain this financial standing can lead to revocation.

In-Depth Comparisons

1. Legal Permissions

	Restricted	Standard National	Standard International
Carry own goods	✅	✅	✅
Hire/reward (UK)	❌	✅	✅
Hire/reward (EU/International)	❌	❌	✅

Key takeaway: If you transport goods for other people, you cannot legally use a Restricted Licence.

2. Professional Competence

	Restricted	Standard National	Standard International
CPC-qualified Transport Manager required	❌	✅	✅
External TM option available	Not required	✅	✅

Standard licences require either:

• An employed CPC holder, or

• An external Transport Manager with a formal contract and proper oversight

Key takeaway: No CPC = No Standard Licence.

3. Scope of Operation

	Restricted	Standard National	Standard International
Number of vehicles	Unlimited (within financial standing)	Same	Same
National operation	Own goods only	✅	✅
International journeys	❌	❌	✅
ECMT permit access	❌	❌	✅

Key takeaway: Standard International Licence is the only one that allows full cross-border operations.

4. Compliance Burden

	Restricted	Standard National	Standard International
Maintenance records	✅	✅	✅
Driver hours/tachograph laws	✅	✅	✅
Operating centre approval	✅	✅	✅
Periodic Traffic Commissioner reviews	Occasional	Frequent	Frequent+

Key takeaway: All licences are subject to DVSA enforcement, but Standard licences come under stricter scrutiny.

5. Cost and Complexity

	Restricted	Standard National	Standard International
Application fee	£257	£257	£257
Licence issue fee	£401	£401	£401
TM salary/contract	❌	Required	Required
CPC exam/study cost	❌	Required	Required
Additional costs (e.g., ECMT, insurance)	Low	Medium	High

Key takeaway: Restricted is cheaper and simpler — but only suitable for limited use cases.

Real-World Scenarios

Scenario A: A local landscape gardening business

They use a 7.5t truck to carry soil, plants, and tools.

• ✅ Carrying own goods

• ❌ Not for hire/reward

• ✅ Domestic onlyBest Licence: Restricted

Scenario B: A courier startup delivering parcels for Amazon across the UK

• ✅ Hire/reward

• ✅ DomesticBest Licence: Standard National

Scenario C: A removals company offering relocation to Spain

• ✅ Hire/reward

• ✅ InternationalBest Licence: Standard International

Why Choosing the Right Licence Matters

Choosing the wrong licence isn’t just an administrative error — it’s a criminal offence. Common consequences of incorrect or inappropriate licensing include:

• Fines

• Vehicle seizure

• Public Inquiry

• Loss of Licence

• Damage to reputation

Operating for hire/reward on a Restricted Licence is a key example. It's one of the most common compliance breaches and is easily discovered by DVSA roadside checks or complaints from competitors.

When You May Need to Upgrade Your Licence

There are a few triggers that may require you to move from Restricted to Standard:

• Taking on delivery contracts for other businesses

• Expanding your operations into Europe

• Increasing your fleet size beyond financial standing capacity

• Employing a team of drivers under working time rules

Can You Downgrade Your Licence?

Yes, it is possible — but rarely advisable unless your business model has changed drastically.

You’ll need to formally notify the Traffic Commissioner and amend your vehicle authorisation, operating centres, and possibly reduce your fleet.

Using an External Transport Manager

For businesses that want a Standard Licence but don't have an in-house CPC holder, an External Transport Manager can be hired.

They must:

• Be qualified and hold a valid CPC

• Be "of good repute"

• Have a written contract with your company

• Be able to dedicate adequate hours based on your fleet size

DVSA typically expects:

• 2–4 hours per week per vehicle (minimum)

Tip: Hiring a freelance External TM is a cost-effective way to operate compliantly while scaling your business.

Key Compliance Considerations (All Licence Types)

Regardless of licence type, all operators must:

• Maintain safe and roadworthy vehicles

• Keep maintenance records for at least 15 months

• Comply with drivers' hours and tachograph laws

• Monitor and manage driver behaviour

• Maintain financial standing

• Report material changes to the Traffic Commissioner

Common Mistakes When Choosing a Licence

1. Thinking a Restricted Licence is a ‘starter’ version – It’s not. It’s a specialist licence for businesses carrying their own goods only.

2. Underestimating the need for a Transport Manager – Standard Licences are not legally valid without one.

3. Assuming international transport is covered by a National Licence – It’s not. You need the Standard International Licence.

4. Failing to update licence details after business changes – Such as change of address, directors, or operating centres.

5. Ignoring the financial standing review – Which happens annually and can result in suspension if not met.

Conclusion

Choosing the right Operator Licence is more than a box-ticking exercise — it’s a strategic decision that affects the legality, flexibility, and scalability of your transport operation.

• Restricted: Great for own-account operators with internal logistics

• Standard National: Ideal for domestic haulage companies or couriers

• Standard International: Essential for cross-border operations and logistics providers

Next step: If you're preparing to apply for your Operator Licence, don’t miss our next article — a detailed, step-by-step guide to the application process.