When starting or expanding your transport business, one of the first big decisions you’ll need to make is which type of operator licence to apply for. If you’re only planning to carry your own goods and not those of others for hire or reward, then a restricted operators licence might be exactly what you need.
This article is here to help you understand what a restricted licence is, how it compares to other types of licences, and whether it suits your business operations. We’ll break things down in a straightforward way to help you make an informed decision.
What Is a Restricted Operators Licence?
A restricted operators licence allows you to carry your own goods in your own vehicles, but not goods for other people or companies. It’s ideal for businesses where transport is part of the operation but not the core service.
Who Is It For?
This licence type is perfect if:
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You’re a builder transporting your own materials
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You run a landscaping company moving tools and plants
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You’re a retailer delivering products to your store or customer locations
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You’re managing a manufacturing business with in-house deliveries
If you don’t intend to carry goods for other businesses or for payment, the restricted licence can keep things simpler.
How Is It Different from Other Licence Types?
Understanding the difference between licence types can help you avoid unnecessary cost and paperwork. Let’s quickly compare:
Standard Licence
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Needed if you’re carrying goods for hire or reward.
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Requires a professionally competent Transport Manager.
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Can be used across the UK or internationally depending on the variant.
Restricted Licence
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Only allows the transport of your own goods.
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No Transport Manager is required.
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Less regulatory burden.
If you’re applying for a PCO operator licence application, make sure you’re going for the correct licence type—it matters more than many realise.
Advantages of a Restricted Licence
Choosing a restricted operators licence can offer several benefits if your operations are aligned with its conditions.
Key Benefits:
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Simpler process – Fewer requirements mean a faster and easier application.
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Lower cost – Generally, the operators licence cost is lower compared to standard licences.
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No need for a Transport Manager – That’s one less role to recruit and manage.
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More flexibility for smaller businesses – Particularly useful for owner-drivers or SMEs.
For businesses focused on construction, manufacturing, or retail, a restricted licence often fits the bill perfectly.
Limitations You Should Be Aware Of
Before jumping in, it’s important to understand the limits of a restricted licence. Misusing it can lead to penalties or licence suspension.
Limitations Include:
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No third-party haulage – You can’t legally transport goods for other companies or charge them for delivery.
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Geographical constraints – The licence is for UK use only.
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Operational restrictions – You must prove that vehicles are being used exclusively for your business.
If your business model could change in future, you may need to upgrade or apply for a new vehicle operators licence.