HGV's The law requires traffic commissioner to be satisfied that vehicle operators have enough financial resources to run their businesses and maintain their vehicles properly.
The traffic commissioner must be satisfied that you have sufficient financial resources to maintain your vehicles properly and, in the case of applicants for a standard licence, to run your business. This is a continuing requirement and traffic commissioners may check at any time to ensure that the requirements are being met.
Advice on what evidence you must provide to show this is given in the GV79G guidance notes
Rates for financial standing are calculated on an annual basis, in accordance with EU Regulation 1071/2009. It is for operators to ensure that they continue to meet the revised rate and demonstrate this when either new applications are made or when requested to do so by a traffic commissioner, for example at five year continuation intervals. The traffic commissioner will measure the evidence against the current financial levels required for a licence.
The level of financial standing is set by legislation and the total sum is based on the number of vehicles multiplied by the current statutory figure. The figures below are current and came into effect on 1st January 2017.
NB: Rates for Restricted Licence Holders remain unchanged.
An operator requiring a Standard National Operators Licence for 5 vehicles would require to show a Financial Standing of:-
1 x £7,850 + 4 x £4,350
Evidence you can use to show financial standing
Most operators use bank statements to prove their financial standing.
If your recent statements donít show finance at the new levels, check whether youíve got any other evidence that will be accepted.
The Senior Traffic Commissionerís Statutory Guidance document on finance gives more information about the financial evidence you can use. The main ones are:
- Building Society accounts
- credit card statements
- overdraft facilities
- invoice finance agreements
- audited accounts
- assets that can be sold quickly (except for your vehicle fleet)