Introduction of new financial standing rates

28/10/2016

Introduction of new financial standing rates

Operator's licence holders must be able to show satisfactory financial resources to be able to keep vehicles fit and serviceable throughout the life of the licence. The levels for financial standing for standard operator's licenes are defined in European legislation in Euros.

For member states not in the Euro zone the levels are revised annually, according to the exchange rates on 1st October. This revised value comes into force on the following 1st January. The rates are restricted operators are determined by the UK Government and are rarely adjusted.

Based on the Euro exchange rate published by the EU on 3rd October FTA expects the new financial standing rates to be:

Standard (current)

  • 1st Vehicle - £6,650
  • Subsequent Vehicle - £3,700

Standard from 1.1.17

  • 1st Vehicle - £7,858
  • Subsequent Vehicle £4,365

Restricted (unchanged)

  • 1st Vehicle -£3,100
  • Subsequent Vehicle - £1,700

These are the precise figures although DfT usually rounds them – this is a significant increase of around 18 per cent.

The rates for restricted operators are not by Europe so we usually expect them to remain unchanged; once again this will be in the formal notice coming from DtT soon.

Source: 'Transport Manager Compliance Calendar'