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Significant increase in Financial Standing amounts - Transport Audits

Significant increase in Financial Standing amounts

If you hold, or wish to apply for, a Standard National or International Operators Goods or Passenger Vehicle Licence from the 1st January 2017 then you will need to demonstrate financial standing of £7850 for the first vehicle and £4350 for each subsequent vehicle on your licence margin.

Irrespective, whether you are utilising your whole margin or not, evidence of available finance must be demonstrated.

The Traffic Commissioners have conceded that this 18% year on year increase could have a significant impact upon operators and have invited operators to apply for a six-month period of grace at the existing levels of £6650 and £3700, respectively.

The rates for restricted O-licence operators, namely, £3,100 for the first vehicle and £1,700 for subsequent vehicles will remain unchanged, this is mainly due to being a UK specific requirement and not influenced by EU Directive.

The Senior Traffic commissioner, Beverley Bell, said: “The financial standing requirement is mandatory (for National and International Operators) so we have to apply the rates to all operators and licence applicants.

However, we recognise that some businesses will feel the impact of the increase more immediately.

“We have advised staff dealing with applications and regulatory hearings to be mindful of the impact of the increase when dealing with operators and giving advice on alternative ways of satisfying the new rates,” she added.

The main sources of financial evidence remain: bank accounts, building society accounts, credit card statements, overdraft facilities, invoice finance agreements, audited accounts, and assets that can be sold quickly (except vehicles).