Restricted vs. Standard Operator Licence: What’s the Difference?

stuart47304
Jul 15
6 min read

Legal Responsibilities of Licence Holders – Part 16

Introduction

If you operate or plan to operate goods vehicles in the UK over 3.5 tonnes gross vehicle weight (GVW), you must hold an Operator’s Licence. But which one is right for your business?

The UK has three main types of O Licence:

Restricted Operator Licence
Standard National Operator Licence
Standard International Operator Licence

Choosing the wrong one — or misunderstanding your obligations — can lead to:

Operating illegally
Penalties and enforcement action
A Public Inquiry
Licence suspension or revocation

In this detailed guide, we explain the key differences between Restricted and Standard Licences, including what you’re legally allowed to do with each, when you need to upgrade, and how to stay compliant regardless of licence type.

What Is an Operator Licence?
What Is a Restricted Operator Licence?
What Is a Standard National Licence?
What Is a Standard International Licence?
Key Differences at a Glance
Who Can Apply for a Restricted Licence?
When Do You Need to Upgrade to a Standard Licence?
Transport Manager Requirements
Financial Standing Differences
Compliance Obligations: Restricted vs. Standard
How to Upgrade Your Licence
Common Mistakes to Avoid
How JS Transport Solutions Can Help

1. What Is an Operator Licence?

An Operator Licence is a legal authorisation to use goods vehicles over 3.5 tonnes for business purposes on public roads in the UK. It's issued by the Traffic Commissioner for your region and must be kept up to date and in full compliance.

The type of licence you hold depends on:

What goods you’re carrying
Who owns the goods
Where you’re transporting them
How many vehicles you operate

2. What Is a Restricted Operator Licence?

A Restricted Operator Licence allows you to:

✅ Operate goods vehicles over 3.5t GVW

✅ Carry your own goods

✅ Operate only within the UK

You cannot:

🚫 Carry goods for other people for hire or reward

🚫 Operate outside the UK

🚫 Nominate a Transport Manager (not required)

Example:

A builder using a 7.5t lorry to carry bricks and tools to building sites = Restricted Licence
A manufacturer transporting their own products to retail outlets = Restricted Licence

3. What Is a Standard National Operator Licence?

A Standard National Licence allows you to:

✅ Carry your own goods

✅ Carry other people’s goods for hire or reward

✅ Operate within the UK (and temporarily in the EU under certain rules)

✅ Employ or contract a Transport Manager

This licence is needed if you’re planning to offer haulage services or subcontract transport work.

4. What Is a Standard International Operator Licence?

A Standard International Licence allows you to do everything a Standard National Licence does, plus:

✅ Carry goods for hire or reward

✅ Operate within the UK and internationally

✅ Carry goods for own account or third parties

✅ Access the EU Community Licence for international work

It’s a legal requirement for any international freight transport operation from the UK.

5. Key Differences at a Glance

Feature	Restricted Licence	Standard National	Standard International
Carry your own goods	✅ Yes	✅ Yes	✅ Yes
Carry goods for others	❌ No	✅ Yes	✅ Yes
Operate in the UK	✅ Yes	✅ Yes	✅ Yes
Operate internationally	❌ No	❌ No (exceptions apply)	✅ Yes
Transport Manager required	❌ No	✅ Yes	✅ Yes
Financial standing	£3,100 per vehicle (2025)	£9,300 first vehicle + £5,150 each additional	Same as Standard National

6. Who Can Apply for a Restricted Licence?

You can apply for a Restricted Licence if:

✅ You’re only moving goods belonging to your business

✅ You’re not charging customers for transport

✅ You operate within the UK only

✅ You do not subcontract haulage for others

✅ You understand your compliance obligations

This is common for:

Builders
Landscapers
Retailers
Manufacturers
Utility contractors
Sole traders and small firms using their own trucks

7. When Do You Need to Upgrade to a Standard Licence?

You must upgrade to a Standard Licence if:

❌ You’re paid to transport goods that do not belong to your business

❌ You carry loads for customers, even occasionally

❌ You do delivery or courier work for others

❌ You lease or lend vehicles for haulage work

❌ You operate abroad

❌ You want to grow your fleet and improve your OCRS and compliance profile

Common mistake: Many start on a Restricted Licence, grow their fleet, and begin subcontracting — without realising they’re now operating illegally.

8. Transport Manager Requirements

Licence Type	TM Required?	Must Hold CPC?
Restricted	❌ No	❌ No
Standard National	✅ Yes	✅ Yes
Standard International	✅ Yes	✅ Yes

If you apply for a Standard Licence, you must either:

Appoint a qualified internal TM
Hire an External Transport Manager under contract
Prove effective and continuous management of compliance

The TM is responsible for:

Vehicle maintenance
Driver hours
Recordkeeping
Ensuring compliance with licence undertakings

9. Financial Standing Differences

You must prove access to sufficient funds to keep your vehicles safe and roadworthy.

As of 2025:

Licence Type	Requirement
Restricted	£3,100 per vehicle
Standard National	£9,300 for first vehicle + £5,150 each additional
Standard International	Same as Standard National

This means a Standard Licence holder with 3 vehicles needs £19,600 available, compared to £9,300 for a Restricted Licence.

Acceptable proof includes:

28-day bank statements
Loan agreements
Overdraft facilities
Audited accounts

10. Compliance Obligations: Restricted vs. Standard

Many believe that holding a Restricted Licence means fewer rules — but that’s a dangerous assumption.

Compliance Area	Restricted	Standard
Maintenance records	✅ Yes	✅ Yes
Daily defect checks	✅ Yes	✅ Yes
Operating centre rules	✅ Yes	✅ Yes
Recordkeeping	✅ Yes	✅ Yes
Notifying the TC	✅ Yes	✅ Yes
Driver hours (if applicable)	✅ Yes	✅ Yes
Tacho use (if applicable)	✅ Yes	✅ Yes
Transport Manager	❌ No	✅ Yes

The same undertakings apply to all licence types — the difference is who manages them.

11. How to Upgrade Your Licence

Upgrading from a Restricted to a Standard Licence is common and involves:

Appointing a qualified Transport Manager
Proving increased financial standing
Applying for a variation on the Operator Licensing Portal
Publishing a newspaper notice (if adding or changing an operating centre)
Waiting 6–8 weeks for the variation decision

We recommend speaking to a compliance consultant before starting.

12. Common Mistakes to Avoid

🚫 Carrying goods for customers on a Restricted Licence→ This is illegal haulage and can result in immediate PI and licence revocation.

🚫 Not appointing a TM on a Standard Licence→ A Standard Licence is invalid without a TM.

🚫 Assuming fewer rules apply to Restricted Licence holders→ The same maintenance and recordkeeping rules apply.

🚫 Applying for the wrong licence type→ Can delay your application or lead to penalties later.

🚫 Failing to monitor financial standing→ Even a small dip below the threshold can trigger enforcement.

13. How JS Transport Solutions Can Help

At JS Transport Solutions, we work with Restricted and Standard Licence holders across the UK to:

✅ Help you choose the right licence type

✅ Complete and submit your O Licence application

✅ Appoint or provide an External Transport Manager

✅ Set up a full maintenance and compliance system

✅ Help you upgrade from Restricted to Standard

✅ Prove financial standing and prepare supporting documents

✅ Respond to DVSA or Traffic Commissioner concerns

✅ Prepare for audits or Public Inquiries

📞 Ready to make the right move? Book a free consultation at👉 www.jstransport.uk

Conclusion

The difference between a Restricted and Standard Operator Licence is not just about what you can carry — it’s about how you operate, who you serve, and how you manage compliance.

Understanding these differences is vital for protecting your business, avoiding costly enforcement action, and planning for future growth.

If you’re unsure which licence is right for you — or ready to upgrade — don’t go it alone.

Quick Summary: Licence Comparison

Feature	Restricted	Standard National	Standard International
Own goods only	✅ Yes	✅ Yes	✅ Yes
Goods for others	❌ No	✅ Yes	✅ Yes
UK operations	✅ Yes	✅ Yes	✅ Yes
International work	❌ No	❌ No	✅ Yes
Transport Manager required	❌ No	✅ Yes	✅ Yes
Financial standing (per vehicle)	£3,100	£9,300 + £5,150	Same
Good repute required	✅ Yes	✅ Yes	✅ Yes