A recent decision from the traffic commissioner, revoking quick road transports Operators Licence due to the fact all but 1 of their drivers were engaged through a LTD company – He determined that the use of ‘LTD drivers’ went against the operator’s licence regime.

Therefore, the Operator’s licence was revoked.

He also warned of vehicles being compounded in other such circumstances.

Reaching his decision, he said the drivers of the vehicles were servants of their own LTD company and not the servants of quick road transport. (which is what the operator licensing regime requires)

He also said that each LTD driver should hold their own operator’s licence, hence the use of the vehicle was unlawful.

This extends further from the HMRC concerns that HGV operators were treating drivers as self employed or using them through the drivers own LTD company (as above) did not comply with UK tax laws – IR35 introduction to mobile workers.

Further research indicated that it would be rare for a driver to be genuinely self employed unless they own the vehicle they are driving and hold their own Operators licence.

This case should be a wake-up call, and operators need to review how they employ drivers going forward and stay within the Operator’s licence regime.

Since The introduction of the IR35 on 6th April 2021, Capital Recruitment took the decision to only employ people on a PAYE basis, therefore keeping our clients compliant   with the IR35  and also within the Operator’s licence regime requirements.

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