Restricted PSV operator licence
What it covers, what it doesn't, and what to get right before your vehicle carries a single passenger.
The short version
- A restricted licence is for small operations using no more than 2 vehicles.
- Vehicles can carry up to 8 passengers.
- Up to 16 passengers is allowed where passenger transport is not your main source of income.
- If your operation is bigger or it is your main business, you will need a standard licence.
Rules last checked 22 October 2026. They can change, so the official sources are listed at the bottom of this page.
Common questions
Do I need a PSV operator licence?
Currently you need one if you carry 9 or more passengers for hire or reward (payment or payment in kind). You also need one if you use a smaller vehicle and charge each passenger a separate fare.
What is a restricted licence?
It is for small operations using no more than 2 vehicles. Vehicles can carry up to 8 passengers, or up to 16 where passenger transport is not your main source of income.
Can I carry more than 8 passengers on a restricted licence?
Yes, up to 16, but only if the vehicle is not used as part of a passenger transport business, or running vehicles for more than 8 passengers is not your main occupation. If you are not sure which side of that line you fall on, ask before you apply.
What is the difference between restricted and standard?
A standard licence is what most full-time commercial operators hold. It covers national operations only, or national and international. A restricted licence is for small, part-time or sideline operations.
What is a special restricted licence?
It lets a licensed taxi or private hire operator run a local bus service. The service must be registered with the local Traffic Commissioner.
Do I need something different in London?
Yes. To run a private bus or coach service in London you need a London Service Permit from Transport for London.
Examples
How the 16-passenger rule works in practice.
Hotel minibus
A hotel runs a 16-seat minibus to bring guests from the station. The minibus supports the hotel business, so it is not a passenger transport business. A restricted licence can cover it.
Outdoor activity centre
An activity centre moves customers from point A to point B as part of the overall experience. The vehicle supports the main business, so a 16-seat vehicle may be covered by a restricted licence.
Sideline minibus
You have a main job or business and run a 12-seat minibus for pre-booked groups on the side. Passenger transport is not your main occupation, so a restricted licence can fit.
Needs a standard licence
Running minibuses or coaches is your main business, or you need more than 2 vehicles. That is a standard licence.
If a limited company holds the licence, the "main occupation" test looks at the company's main business, not the director's own job. Every case is different, so ask before you apply.
Who is responsible?
A restricted licence is the lighter option. The responsibility is not lighter.
Someone must do the manager's job
You do not need a transport manager on a restricted licence. But the person responsible for the licence must carry out the same duties as one, to the same standard of compliance as a standard licence. That covers driver licence checks, drivers' hours and records, vehicle maintenance and defect reporting.
A limited company does not shield you
A traffic commissioner can disqualify a company or an individual from holding a licence. They can also direct that licences linked to that person, for example as a director, are looked at too. Outcomes can include conditions, suspension, revocation and disqualification.
You must be able to prove it
The operator has to show a traffic commissioner that it has systems to keep vehicles roadworthy, follow drivers' hours rules and make sure drivers are licensed and trained. Records that exist only in your head will not count.
I help you put those systems in place before your first passenger, so you know exactly what you are signing up to.
How I help
- Check which licence type fits your vehicle and how you use it.
- Prepare your application so it is complete first time.
- Set up vehicle checks, driver records and maintenance systems before you start.
- Prepare you for questions from DVSA or the Traffic Commissioner.