New licensing regime kicks in

Anyone who supplies a vehicle and a driver for money will need to comply with new licensing laws which come into effect next year, Hertsmere Borough Council has warned.

Currently a licence from the council is only required if you are supplying a car with a driver that carries eight or fewer passengers and where any commercial benefit is obtained.  This applies to private hire vehicles, taxis and even courtesy cars supplied with drivers by businesses such as garages, where the garage's drivers ferry customers around while their own cars are serviced. 

Under existing law, vehicles and drivers that are provided under an exclusive contract for at least seven days do not need a licence to do so.  However, the Government is set to use the Road Safety Act 2006 to abolish the exemption and new laws will then come into effect across the country from 28 January 2008.

To help businesses and drivers know whether or not they will need a licence, the council has put together a checklist of questions:

• Do you hire out a vehicle with a driver that carries eight or fewer passengers? Do you make a vehicle and a driver available to customers?
• Do you receive any sort of commercial benefit or advantage (whether as a payment or in another form) from this? 

If the answer to any of these questions is yes, you will probably need a licence and should contact the council for more information. 

Licences are probably not needed where:

• each passenger pays a separate fare
• it is an emergency ambulance
• it is an ambulance operated as part of a formal Patient Transport Service - whether or not this is for the NHS.  Vehicles driven by volunteers or on an ad-hoc basis may still need licensing.
• volunteer car drivers who are simply acting out of social kindness and only receive expenses no more than those allowed by HM Revenue and Customs
• childminders who carry children, unless it is a contractual requirement that a vehicle is provided as part of looking after a child. 

There are serious consequences for not being licensed.  Failing to have a licence can result in a criminal prosecution for failing to hold an operator's licence; failing to hold a vehicle licence; and failing to hold a driver's licence - each offence carries a maximum penalty of a £1,000 fine.  In addition, any insurance policy for the vehicle may be invalid, which can lead to further criminal prosecutions and even a ban from driving.

If you are not sure whether you need to obtain a licence, or require more information, please contact the council's licensing team on 020 8207 7551 or email licensingservices@hertmere.gov.uk