Navigating UK Permits for Large Passenger Vehicles

Operating passenger transport services in the United Kingdom, especially for hire or reward, typically requires a Public Service Vehicle Operator's (PSV 'O') licence. However, for many not-for-profit organisations, an alternative exists in the form of specific permits issued under the Transport Act 1985. These permits offer a vital pathway for charities, educational bodies, and community groups to provide essential transport services without the extensive requirements of a full PSV 'O' licence. A common question that arises for organisations looking to expand their services is whether these permits can be utilised for larger vehicles, specifically large buses capable of carrying 17 or more passengers. This article delves into the intricacies of these permits, clarifying their scope, the conditions for their use, and the specific rules that apply to operating large buses.

Understanding the landscape of passenger transport regulations in Great Britain can be daunting. Normally, any organisation accepting payment for carrying passengers must hold either a PSV 'O' licence, issued by a traffic commissioner, or a Private Hire Vehicle (PHV) licence, issued by local authorities. Drivers of PSVs usually require a Passenger Carrying Vehicle (PCV) entitlement on their driving licence. However, the Transport Act 1985, through Sections 19 and 22, carves out exemptions for organisations operating on a not-for-profit basis, allowing them to provide transport for a charge without needing a full PSV 'O' licence. This framework is designed to support community and charitable transport initiatives, ensuring they can operate legally while maintaining safety standards.

What are UK Transport Permits?

Permits under the Transport Act 1985 are special authorisations that exempt not-for-profit organisations from the requirement to hold a full PSV 'O' licence when providing transport for hire or reward. This system is crucial for enabling vital community services that might otherwise be financially or administratively unfeasible. The Driver and Vehicle Standards Agency (DVSA) staff can assist in determining eligibility for a permit, though they cannot provide legal advice on the legality of an operation once a permit is granted. It is paramount for permit holders to ensure their services comply with all legal requirements, including proper vehicle maintenance and qualified drivers, as operating without a valid permit or licence could lead to prosecution and vehicle impoundment.

The concept of 'hire or reward' is central to these regulations. It refers to any payment, whether in cash or kind, that grants a person the right to be carried on a vehicle. This can include direct fares, or indirect payments such as membership subscriptions where the transport is part of the benefits. The courts interpret 'hire or reward' broadly, so it's essential for organisations to seek advice if unsure. Crucially, a permit is not required if no charge, direct or indirect, is made for services that include carriage on the vehicle.

Types of Permits for Not-for-Profit Operations

There are two primary types of permits issued under the Transport Act 1985, each catering to slightly different operational models and passenger groups:

Section 19 Permits: Educational and Other Bodies

Section 19 permits are granted to organisations that operate vehicles without a view to profit, specifically for transporting their members or individuals the organisation exists to assist. These permits are categorised into two types based on vehicle size:

• Standard Permits: For vehicles adapted to carry no more than 16 passengers (excluding the driver).
• Large Bus Permits: For vehicles adapted to carry 17 or more passengers (excluding the driver).

A key restriction for Section 19 permit vehicles is that they cannot be used to carry members of the general public. The permit specifies the particular classes of persons who can be carried, such as members of the body, persons the body exists to benefit, disabled persons, pupils/students, or persons within a geographically defined community whose public transport needs are not otherwise met. If a permit authorises carriage for those in Class E (isolated communities), two conditions must be met: the community must be clearly local, and public transport needs must genuinely not be met by other services. Changes to an organisation's name or entity require applying for a new permit, as permits are not transferable.

Section 22 Community Bus Permits

Section 22 permits are issued to bodies concerned with the social and welfare needs of one or more communities. Like Section 19 permits, they enable organisations to operate vehicles without a view to profit. However, a significant difference is that Section 22 permits allow the provision of a 'community bus service,' which are defined as 'local bus services' and can carry the general public. These services typically involve carriage at separate fares on routes where passengers travel for less than 15 miles.

Vehicles adapted to carry 9 or more passengers, including large buses (17 or more passengers), may be used under a community bus permit. For large buses, the traffic commissioner must be satisfied that adequate facilities or arrangements are in place to maintain the vehicle in a roadworthy condition. Importantly, any community bus permit issued before 6 April 2009 does not authorise the use of a large bus. Section 22 permit holders can also use their vehicles for additional services for hire or reward, provided this activity directly provides financial support for the community bus service and does not need to be registered as a local bus service.

Key Differences: Section 19 vs. Section 22 Permits

The choice between a Section 19 and Section 22 permit largely depends on the intended passengers and service model. Here’s a comparative overview:

Navigating the Legal Landscape: EU Regulation Exemptions

EU Regulation 1071/2009 sets out requirements for organisations operating vehicles carrying 9 or more passengers for payment. To be eligible for a Section 19 or Section 22 permit, an applicant must satisfy one of the exemptions set out in this EU Regulation, in addition to meeting the not-for-profit and other criteria of the 1985 Act. The Transport Act 1985 (Amendment) Regulations 2019 give effect to the short distance exemption in GB. The main exemptions relevant to not-for-profit organisations are:

Exclusively Non-Commercial Purposes Exemption

This exemption applies to "undertakings engaged in road passenger transport services exclusively for non-commercial purposes." The interpretation of this exemption focuses on *all* an operator's purposes for providing transport services. Simply being a charitable organisation is not enough; some charities may engage in activities with commercial purposes. Whether this exemption is met is determined on a case-by-case basis through a multi-factor assessment.

Factors considered include: the operator's overall purposes, how any surplus is reinvested (must be into the organisation), engagement in competitive procurement or tendering (allowed if purposes are purely non-commercial, but extent is indicative), and operator size and scale (large operators competing with commercial ones might find it harder to prove *exclusively* non-commercial purposes). Cross-subsidies are generally not precluded if the overall purpose is social welfare, even if some routes are profitable. It's important to note that the same legal entity cannot hold both a PSV 'O' licence and a Section 19 or Section 22 permit.

Main Occupation Exemption

This exemption applies to "undertakings… which have a main occupation other than that of road passenger transport operator." For a not-for-profit organisation, its engagement in road passenger transport must be demonstrably ancillary or complementary to its main occupation. The applicant must provide evidence that their main occupation consumes the majority of their time and resources and generates the majority of their income, with transport being a lesser activity. It's a question of fact, not just purpose. For example, a school transporting pupils or a scout group using a minibus as part of their activities would likely qualify, whereas an organisation whose main role *is* providing transport, even for specific social welfare needs, would not.

Short Distance Exemption

This exemption allows Member States to exempt operators engaged exclusively in national transport operations having only a minor impact on the transport market due to short distances. In GB, the Transport Act 1985 (Amendment) Regulations 2019 automatically recognise a 'short distance' as either a 10-mile radius from a central point or a 10-mile straight line from embarkation to disembarkation. This applies to both Section 19 and Section 22 permit users. Longer distances might be justified in less densely populated rural areas if the impact on the wider market remains small. All services within this automatic 'short distance' are judged to have a minor impact on the transport market.

Key Requirements for Permit Holders

"Without a View to Profit" Explained

A fundamental condition for using a vehicle under a permit is that it must not be used with a view to profit, nor incidentally to an activity that is itself carried out for profit. While registered charities usually qualify, an organisation does not need charitable status to meet this. Societies and clubs whose primary purpose is providing services for members or the community, and not profit, may also qualify. Commercial organisations, including privately owned schools or nursing homes, are ineligible. If a permit holder provides transport for another organisation, that organisation must also not operate for profit. For instance, a charity running a minibus for sheltered accommodation residents is fine, but if a supermarket pays for the service, it becomes incidentally for profit and is not allowed.

Community Interest Companies (CICs) are assessed case-by-case. If there's share capital or scope to distribute dividends or generate returns for other CICs, it's unlikely to meet the not-for-profit requirement. However, a CIC limited by guarantee with no share capital, fares covering running costs but not generating profit, and an asset lock, might qualify. If uncertain, independent legal advice should be sought.

"Hire or Reward" Explained

As previously mentioned, 'hire or reward' is any payment that gives a person the right to be carried. This can be direct (fare) or indirect (membership fee). Courts take a broad view; if someone who hasn't paid has no right to be carried, it's likely 'hire or reward'. No permit is needed if no charge is made, directly or indirectly.

Separate Fares

Separate fares mean an individual payment by each passenger for their journey. This can be paid on the vehicle or in advance, or indirectly through other services (e.g., event tickets including travel) or subscriptions. Separate fares are *not* paid when a vehicle is hired as a whole for a set charge, regardless of passenger numbers, and passengers make no individual contribution. For small vehicles (8 or fewer passengers) used under a Section 19 permit, separate fares must be charged. If separate fares are not charged, and the vehicle is for hire with a driver, a Private Hire Vehicle (PHV) licence is usually needed, which a Section 19 permit does not exempt from.

Vehicle Specifics and Maintenance

Vehicle Sizes

• Small vehicles: Adapted to carry 8 or fewer passengers (excluding the driver).
• Small buses: Adapted to carry 9 to 16 passengers (excluding the driver).
• Large buses: Adapted to carry 17 or more passengers (excluding the driver).

Any vehicle adapted to carry more than 8 passengers for hire or reward is a Public Service Vehicle (PSV), regardless of whether it operates under a permit or a licence.

Maintenance Obligations

As a permit holder, you are responsible for ensuring your vehicles are safe and roadworthy. This involves:

• Daily Walkaround Checks: Performed before each use, checking essentials like oil, brakes, tyres, and lights.
• Vehicle Safety Inspections: Regular, scheduled inspections (DVSA recommends at least every 10 weeks) by competent individuals, covering safety-critical items. Records of inspections and remedial work must be kept for at least 15 months.
• Defect Reporting: Drivers must promptly report any defects in writing, and records of rectification must be kept.
• Specialist Equipment: Lifts and ramps must be thoroughly examined by a competent person at least every 6 months, in addition to manufacturer's recommendations.

For large buses, the traffic commissioner will need to be satisfied that adequate maintenance facilities or arrangements are in place before granting a permit. Any changes to maintenance arrangements for large buses must be immediately notified to DVSA.

Certificates for Large Buses

Large buses (17+ passengers) used under a Section 19 or Section 22 permit must have a Certificate of Initial Fitness (COIF) or a Certificate of Conformity (CoC), or a certificate issued under the Road Vehicles (Approval) Regulations 2009 (for newer vehicles). These certificates confirm the vehicle meets PSV standards. Operating a large bus without the appropriate certificate is a criminal offence.

Vehicle Testing

All permit vehicles must undergo regular testing:

• 8 or fewer passengers: Class IV MOT test, annually after third anniversary.
• 9 to 12 passengers: Class IV MOT test, annually from registration.
• 13 to 16 passengers: Class V MOT test, annually from registration, at approved HGV/LGV or specially designated MOT stations.
• 17 or more passengers (Large Buses): Class VI test, annually from registration, at approved HGV/LGV stations or authorised DVSA sites.

Seat Belt Regulations

Rules vary by vehicle age and type. Generally, minibuses and coaches first used on or after 1 October 2001 must have seat belts in all forward and rear-facing seats. Where fitted, passengers aged 14 and above must wear them, unless medically exempt or on a local bus service on restricted roads designed for standing passengers. Children have specific requirements, often needing appropriate restraints or seat belts. Drivers must also wear seat belts unless medically exempt. Passengers must be informed of the requirement to wear seat belts, through announcements or signs.

Accessibility Requirements (PSVAR 2000)

Vehicles carrying more than 22 passengers may need to comply with the Public Service Vehicle Accessibility Regulations 2000 (PSVAR 2000), particularly if first used after 31 December 2000 and operating a local or scheduled service (which a community bus service is). These regulations ensure accessibility for disabled persons, requiring features like wheelchair spaces, boarding devices, priority seating, and visual/audible signals.

Driver Requirements

Driver Licensing

All drivers of permit vehicles must be 21 or over. The specific licence category required depends on the vehicle size and when the driver passed their test:

• PCV Licence Holders: Drivers holding a full PCV driver licence (or equivalent) can drive any size permit vehicle and be paid.
• Category B (Car) Licence Holders:
• Passed before 1 January 1997: Automatically granted D1 entitlement. Can drive small buses (9-16 passengers) of any weight under a permit and be paid. Renewal at 70 requires a medical examination.
• Passed on or after 1 January 1997: Can drive small buses (9-16 passengers) only if they have held a full Category B licence for at least 2 years, receive no payment other than out-of-pocket expenses, the vehicle is under 3.5 tonnes (4.25 tonnes with disabled equipment), no trailer is towed, and they are under 70 or meet D1 medical standards.
• Large Buses (17+ passengers): Drivers must hold a PCV driver licence (or equivalent) and can be paid.

Drivers' Hours and Tachographs

Rules vary depending on vehicle size and service type:

• Small Vehicles (8 or fewer passengers): Drivers' hours rules do not apply.
• Small Buses (9-16 passengers): Volunteer drivers are not subject to domestic or EU rules. Non-volunteer (employee) drivers are subject to domestic drivers' hours rules (30-minute break after 5.5 hours driving). Tachographs are not required.
• Large Buses (17+ passengers):
• Generally, a tachograph is required, and drivers are subject to EU drivers' hours rules (45-minute break after 4.5 hours driving, can be split).
• Exception: A tachograph is *not* needed if the large bus provides a regular service with a route of less than 50km. In this case, domestic hours rules apply.

Drivers who also drive for commercial operations must manually record permit driving hours as duty time, even if a tachograph is not fitted, and inform their employer.

Driver CPC and Training

The Driver's Certificate of Professional Competence (CPC) is mandatory for driving category D1, D1+E, D, or D+E vehicles, unless exempt. This requires 35 hours of periodic training every 5 years to maintain high driving standards and road safety. Even if exempt from CPC, specialist driver training (e.g., MiDAS) is highly recommended, as driving a minibus requires specific skills beyond driving a car. Drivers must be given clear written instructions, be familiar with the vehicle, and never use a mobile phone while driving.

Driver Conduct Regulations

Drivers of community bus services must comply with driver conduct regulations, which include: not speaking unnecessarily while driving, not smoking in the vehicle, and taking all reasonable precautions for passenger safety, especially for wheelchair users and disabled persons. This includes ensuring safe boarding/alighting, correct positioning of wheelchair users, and safe use/stowage of ramps/lifts.

Permit Issuance and Management

Issuing Bodies

Permits are issued by:

• Traffic Commissioners (through DVSA): Can issue both Section 19 and Section 22 permits for all vehicle types, including large buses.
• Designated Bodies: Bodies designated by the Secretary of State for Transport (e.g., local authorities, national voluntary organisations like the Scout Association). They can only grant Section 19 permits for vehicles carrying no more than 16 passengers (standard permits) and cannot grant Section 22 permits or Section 19 large bus permits.

Application Process and Fees

Application forms for Section 19 (standard or large bus) and Section 22 permits are available from DVSA or designated bodies. Large bus permits must be returned to DVSA. A fee is payable with the application, typically based on the number of permits requested. An organisation can apply for as many permits as needed, with one permit required for each vehicle operated simultaneously, and the corresponding disc displayed. Permits granted to individuals on behalf of informal groups are treated as granted to the group.

Permit Validity and Revocation

Permits and discs granted on or after 6 April 2009 are valid for a maximum of 5 years and have an expiry date. Older permits (pre-6 April 2009) remain valid until further notice but do not authorise the use of large buses for Section 22 permits. Permits can be revoked, and conditions varied, by the issuing body or a traffic commissioner. Permits cease to be valid if the designated body that issued them loses its designation. Revoked or invalid permits and discs must be returned to the issuing body.

Restrictions on Carriage (Section 19)

A Section 19 permit vehicle cannot carry members of the general public. The permit and disc will indicate specific classes of persons allowed (Class A-F). For example, a scout group's permit might only allow members and supervisors. Organisations wishing to carry Class E (isolated communities) or Class F (other specified persons) must provide additional information with their application to demonstrate eligibility.

Tendering for Contracts

Section 19 permit holders cannot tender for subsidised local service contracts under Section 89 of the Transport Act 1985, as their services are not classified as 'local services' and cannot carry the general public. However, they can tender for non-local services like school transport or specialised door-to-door services (e.g., Dial-a-Ride), provided the contract is limited to the specific passenger classes on their permit. Section 22 permit holders, operating local bus services, can tender for Section 89 subsidised contracts and bid for quality contracts in Wales. Contracts cannot be undertaken with a view to making a profit, though full cost recovery models are permissible.

Lost Permits and Discs

Lost, destroyed, defaced, or faded permits and discs must be reported to the issuing body, and replacements requested. Originals found later must be returned. A fee may apply if corresponding documents are not returned. Details must never be overwritten.

Going Abroad

Permits are only valid for journeys wholly within Great Britain and Northern Ireland. For international travel, an operator licence is required, and journey forms must be obtained from the Confederation of Passenger Transport or a third-party operator.

Bus Service Operator Grant (BSOG)

Organisations holding a Section 22 permit may be eligible for a Bus Service Operator Grant (BSOG) from the Department for Transport, as they operate registered local bus services. Section 19 permit services may also be eligible if used wholly or mainly by persons aged 60+, disabled persons, those receiving income support or Jobseeker's Allowance, socially excluded persons, or carers/under 16s accompanying such individuals.

Frequently Asked Questions (FAQs)

Q1: Can a standard Section 19 permit be used for a large bus?
A1: No, a standard Section 19 permit is for vehicles carrying no more than 16 passengers. To operate a large bus (17 or more passengers) under Section 19, you need a specific 'Large Bus Permit', which can only be issued by a traffic commissioner, not a designated body.

Q2: What is the main difference between a Section 19 and Section 22 permit regarding passengers?
A2: The fundamental difference is who can be carried. Section 19 permits are for specific groups (members, beneficiaries, etc.) and *cannot* carry the general public. Section 22 (community bus) permits *can* carry the general public as they operate registered local bus services.

Q3: Do I need a PCV licence to drive a large bus under a permit?
A3: Yes, for large buses (17 or more passengers), the driver must hold a full Passenger Carrying Vehicle (PCV) driver licence or its equivalent. This also allows the driver to be paid.

Q4: How long is a permit valid for?
A4: Permits and discs issued on or after 6 April 2009 are valid for a maximum of 5 years and have an expiry date. Permits issued before this date do not have an expiry date and remain valid until further notice, though old Section 22 permits do not authorise large bus use.

Q5: What does 'without a view to profit' truly mean for permit eligibility?
A5: It means the transport services themselves are not run to make a profit, nor incidentally to any profit-making activity. Simply being a registered charity is not enough; all purposes of the transport service must be non-commercial. Any surplus generated must be reinvested into the organisation, not distributed as profit.

Q6: Are there specific maintenance requirements for large buses under a permit?
A6: Yes, beyond regular daily checks and periodic safety inspections, large buses must have a Certificate of Initial Fitness (COIF) or Certificate of Conformity (CoC) confirming PSV standards. The traffic commissioner must be satisfied that adequate maintenance facilities and arrangements are in place.

Q7: Can a permit holder also hold a full PSV 'O' licence?
A7: No, the same legal entity cannot hold both a PSV 'O' licence and a Section 19 or Section 22 permit under the 1985 Act.

Conclusion

The UK permit system under the Transport Act 1985 provides a vital framework for not-for-profit organisations to deliver essential passenger transport services, including the operation of large buses. Whether through a Section 19 'Large Bus Permit' for specific groups or a Section 22 'Community Bus Permit' for public local services, these authorisations offer a pathway to operate without the full burden of a PSV 'O' licence. However, this flexibility comes with stringent conditions, particularly regarding the 'not-for-profit' nature of the operation, adherence to EU Regulation exemptions, and rigorous standards for vehicle maintenance, driver licensing, and conduct.

Understanding these intricate rules is paramount for compliance and ensuring the safety of passengers. Organisations must diligently assess their eligibility, maintain meticulous records, and remain proactive in meeting all legal obligations. Given the complexity of the regulations, particularly concerning 'hire or reward', 'without a view to profit', and the EU exemptions, seeking legal advice is highly recommended if any doubt arises. By adhering to these guidelines, not-for-profit organisations can continue to provide invaluable transport services, contributing significantly to community welfare across the UK.

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