The amount of money required for all holders of standard operator’s licence to meet the requirement of financial standing will increase on 1st January 2017.
Financial standing for the period between 1st January 2017 and 31st December 2018 will be £7850 (increased from £6650) for the first vehicle and £4350 (increased from £3700) for each additional vehicle authorised under the licence.
Member states that are not part of the Euro are required to vary the rates of financial standing on the first of January each year and the financial standing is worked out on the basis of the £/€ rate on the 1st of October. This year the fall in the value of the £ has caused this increase.
Oliver Legal Solicitors have produced this ready reckoner to help calculate the amount of financial standing required for your licence next year.
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Financial standing is one of the 4 essential requirements for holding an operators licence. If you cannot meet this requirement then the Traffic Commissioner must revoke your licence.
It is vital that you understand whether you can meet this requirement which is usually calculated using an average balance over 3 months. Traffic Commissioners can be flexible with this requirement because the money held in your account does not always have to be the exact balance for the number of vehicles operated. You may have needed to use the money to pay for a new engine or a repair bill. This is fine provided that the balance returns to the correct average within 3 months.
If you are worried about achieving this then you can also ask the Traffic Commissioner to help you by allowing up to 6 months to rebuild your finances.