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Whether you are working for a company providing chauffeur driven cars and/or limousine for hire, if they are licensed for private hire by their local authority, then they can only employ correctly licensed drivers/chauffeurs.

Driver’s licences are only issued by appropriate District Council after the driver has been checked to ensure that he or she: 

1. Is a fit and proper person of which includes vetting for criminal convictions, including motoring offences.

2. Has held a  full, valid driving licence for a minimum of 12 months.

3. Has passed a medical as laid down by the District Council

4. Has successfully undertaken a knowledge test of the area. (this is not always mandatory)

5. Is fully aware of the conditions and obligations attached to the drivers licence.

All licensed drivers must wear an identification badge, which includes a photograph of the bearer. Some District Councils will issue a ‘dual’ licence that permits a licensed driver to drive a Hackney Carriage and Private Hire Vehicle. Please note: This is designed as a guide only, whilst the principles will remain the same, some District Councils will intepret the rules differently. In additon, the rules for applying for a PCO (Public Carriage Office) Licence in London will differ.

Cars for Stars is a UK based company operating chauffeur driven cars and limousine. Based in London, it offers national service through an extensive, branch network of franchised offices. All Cars for Stars franchises are fully licensed by their respective local authority, or in the case of London, by the Public Carriage Office (PCO), which means that the chauffeurs will have been subjected to a medical and criminal records bureau check and the chauffeur cars and limousines will be subjected to regular and vigorous tests. Cars for Stars local offices can be found in the Chauffeur Cars Directory or the Limousine Hire Directory.

All Hackney Carriages (taxis) are required to display an illuminated ‘TAXI’ sign. On licensed cars the sign is fitted to the roof and the word ‘taxi’ is visible from the front. During hours of darkness all taxi signs are illuminated when the vehicles are available for hire. Private Hire Vehicles are not permitted to display any sign on the roof of the vehicle.

All taxis and Private Hire Vehicles have to display licensed plates, one fixed to the rear and the other to the internal dashboard of the vehicle. The plate displays the licence number and the number of passengers that a vehicle is allowed to carry. The exterior plate affixed to a Hackney Carriage (taxi) are white, whilst a yellow plate is affixed to the rear of a Private Hire Vehicle., except in the case of some ‘executive hire’ vehicles where an exemption may have been applied for and granted. Hackney Carriages (taxis) can be hailed directly from the street or hired from taxi ranks, which are situated in each town.

Private Hire Vehicles must by law be pre-booked. A Private Hire Vehicle may also include a Stretched Limousine, which will not be permitted to carry any more than 8 passengers and will also be required to display a yellow plate on the rear of the limousine unless exemption has been granted.

All Hackney Carriage (taxis) are fitted with fare meters, which should be used for each journey. Fares are fixed for each vehicle by the District Council, and a fare card must be displayed inside the taxi.

Private Hire Vehicles do not need to have a fare meter fitted. It is advisable to agree the fare at the time of the booking and to ensure that the cost is confirmed with the driver prior to the journey commencing. Where meters are fitted voluntarily, the District Council tests for accuracy. Journeys in Private Hire Vehicles must be pre-booked through an operator licensed by the District Council. Licences are only issued to operators who are fit and proper persons who understand the relevant laws. Licensed operators must ensure that drivers and vehicles used by them comply with all licence conditions.

Well it is not quite what it appears. In order that a limousine can carry more than 8 passengers for hire and reward, it must first be issued with what is known as a Certificate of Initial Fitness, or by its abbreviated term, a CoIF. The problem here is that the conversion work to gain a CoIF requires a substantial investment and this would have to be reflected in the cost of the limousines and therefore the hire charges, making it too prohibitive for most operators . At this time, there are a very limited number of limousines with a CoIF, probably less than 20 in the country and those that do have a CoIF will, quite rightly, shout about it.

Whilst there is certainly some merit in having a strict conformity process for vehicles that could regularly be carrying up to 16 passengers, there is also an argument that the regulations where never designed for stretched limousines and therefore some flexibility should be considered to make conformity easier to attain, without necessitating a relaxing of the rules that may put passengers at risk. Needless to say, the authorities have not listened to the industry and therefore, the more enterprising operators have sought and found a work around.

Currently, it is possible to complete some minor conversion work and then register a limousine as a private minibus, this is perfectly legal and means that the limousine will not have had to pass an SVA or gained a Certificate of Initial Fitness. Once the limousine has been registered as a private minibus, it can be used to carry up to 16 passengers, depending on weight etc. Therefore anyone is entitled to drive this ‘private minibus’ on a normal drivers licence, provided they have a D1 on their licence. However, it still cannot, under any circumstances, be used for hire and reward without the Certificate of Initial Fitness.

With limousines costing anything up to £100,000, few operators will be willing to actually let you drive the limousine yourself, so the criteria employed to be deemed an appropriate driver is quite strict, this means that in many cases, you will be obliged to employ a chauffeur from an approved ‘pool’ of chauffeurs provided by the limousine company. No two operators work in the same way, but here is a typical example of how the practice works.

You and a group of 13 friends want to hire a limousine that can carry all 14, but, for whatever reason, you do not want to hire two limousines. Therefore, you approach a company that operates a 14 seat limousine which has been registered as a private minibus and they are prepared to hire out on a self-drive hire contract. The limousine operator will agree to hire you the limousine on a “self-drive” basis, but (typically) insist that, because it is a large and a specialist vehicle, you use an experienced, professional driver or chauffeur from a ‘company’ that provides these on a casual basis. Then, under normal circumstances, you would pay the hire fees to the limousine operator and settle with the chauffeur direct. So, whilst there is a little more paperwork, you now have a limousine which can carry you and all of your friends.

Is this legal? Probably, but no-one really knows, the self-drive hire contract and the rules governing the scheme were, by all accounts drawn up by a Barrister with expertise in the transport sector. It would appear that the Barrister has indicated that provided the rules are followed, the practice is perfectly legal under existing legislation. Those operating this scheme now claim that it is legal, in the strictest sense, this is not true, all they have had is a ‘barristers opinion’ and that is all it is, to determine whether or not the scheme is legal would require a court case. So far, VOSA who would normally enforce the rules have done nothing, so the whole matter remains in abeyance.

Nonetheless, there are risks attached, and these fall mainly with the hirer. For example, the hire agreement would normally make clear that the vehicle cannot be used for ‘hire and reward’, that is to say, the hirer cannot accept payment from his or her friends towards the cost of the vehicle. In reality, is is most unlikely that anyone would be feeling the benevolent towards their friends or family. If it was proven that the vehicle was indeed
used for hire and reward, then the hirer could be charged, amongst other things, with operating a vehicle for hire and reward without an Operator Licence and without a Certificate of Initial Fitness. The driver or chauffeur would also not be immune from prosecution if it could be proved that he or she was, in any way, complicit in the arrangement. In addition, most self-drive hire vehicles are not insured for hire and reward, therefore, if your vehicle was involved in accident, the hirer, could theoretically become personally liable for any claims. Some insurance companies have included hire and reward on the policies, but it is fair to conclude that if they are insuring the limousine (or private minibus) for hire and reward, the insurance companies and therefore the limousine operators must have an inkling that the vehicle may actually be used for that purpose.

On a self-drive hire policy, there is also the very real possibility that the vehicle has an insurance excess, therefore it is conceivable that the limousine operator will seek to recover this from the hirer in the event of an ‘fault’ accident. If the hirer has “employed” a driver from a pool proposed by the limousine operator, it may not be reasonable for the hirer to be responsible for the excess in the event of an accident where their driver was at fault.

This practice is relatively new and untested in respect of the current legislation, but it is probably more of a moral issue than a legal one. Few would condemn business people who look to get a return on their considerable investment by finding ways to provide consumers with what they want. However, if there was not a justification for a Certificate of Initial Fitness on a passenger carrying vehicle used for hire and reward, then surely it would no be there. It is safe to assume that the authorities consider compliance to be a safety issue. Furthermore, there is probably no need for a company operating in this way (self-drive hire) to have a private hire or bus operator licence, if this is the case, then how safe can the passengers feel when there is, theoretically, no regular checks on the chauffeur and the vehicle? Limousine companies that operate a limousine business for hire and reward are required (from 1st January 2008) to have either a private hire licence or a bus operator licence. Both of these licenses require that the limousine are subjected to a strict and regular test. In addition, the private hire operators or bus operators must employ drivers with the appropriate licence for the vehicle in question, this means that the chauffeur will have been subjected to a medical and criminal records bureau check.

Cars for Stars Limited will not, and do not, operate a self-drive hire limousine hire service with contracted in/out chauffeurs and therefore our views must be taken in context and would, inevitably, be considered biased by those that do operate this scheme. Therefore, we will not hire behind a cloak of anonymity and we are happy to place on record that we are a fully licensed private hire company with limousines licensed for private hire and a maximum of 8 passengers. We do not condemn those that operate this type of scheme, but we do believe that the relevant authorities should investigate the practice further and then introduce a test case in order that the legality issue can be clarified once and for all. The industry is currently in discussions with the relevant bodies with a view to amending existing legislation to permit and therefore regulate the use of limousines in a category of 9-16 passengers, most likely under the auspices of the local authorities. We fully support this well intentioned move. We do not, however, agree with anything practice that could lead to a questioning of the integrity of those that operate within the limousine industry.

For those consumers that intend to hire a limousine with a view to carrying more than 8 passengers from a self-drive hire limousine operator then we recommend that they consider the following:

1. Read the self-drive contract hire carefully.

2. Tell the company you intend to hire the limousine from how you intend to fund the vehicle and ask them if that would be considered hire and reward, then note their response in writing or do this in front of a witness. One definition of hire and reward has been provided by the Transport Office, you can read it here: Definition of Hire and Reward

3. Check the terms and conditions of the hire to see whether or not the vehicle is covered for hire and reward, if it is, and you should fall foul with the law, then in theory you will not be in a position where the vehicle is uninsured.

4. Find out if there is a policy excess and if there is, who would be responsible for reimbursement in the event that accident was considered the fault of your driver

5. Remember, you are employing the chauffeur, so try and establish whether or not you will still be liable for the hire cost if the driver does not turn up

6. Establish who will be responsible in the event that the vehicle has any faults which could give rise to Police action at the roadside. Would it be you as the hirer, the driver, or the hire company. It may be that all, or just some of you would be considered responsible.

7. You should be aware, that ignorance of the law is not considered an excuse. So be under no illusion, if you intend to accept any form of payment from any of the passengers, that provides them with the right to be carried in the limousine, then this is hire and reward. It doesn’t matter whether this is a direct or indirect payment. As the hirer, it is your responsibility, if you are found to have provided a hire and
   reward service, then you must have, where more than 8 passengers are carried, a bus operators licence, the chauffeur must have an appropriate PCV licence and the vehicle must have a Certificate of Initial Fitness. This is no grey area, it is cast in stone!

It is important to state at the outset that the Schedule 6 (Construction of Minibuses) conversion is not a limousine ‘approval scheme’. It is conversion completed in order that a vehicle can pass the DVLA Private Minibus test. Thereafter, the vehicle can be used to carry up to 8 passengers for hire and reward under a Restricted PSV Operators Licence. As a private vehicle it is also permissible to carry as many passengers as it has been approved for, but the vehicle cannot be used for the carriage of more than 8 passengers for ‘hire and reward, unless the vehicle has a Certificate of Initial Fitness (CoIF), the driver has an appropriate licence and the operator has a Standard or Restricted Bus Operators Licence.

It is theoretically possible to use the vehicle as a Private Hire Vehicle to carry up to 8 passengers for ‘hire and reward’ however, if this is your intention, then you should approach your Local Authority first. This is principally because the vehicle have been registered as a Private Minibus and therefore does not fall within the SVA scheme, something that most Local Authorities insist upon before they will licence any vehicle for private hire. There may also be issues surrounding the number of seats and the DVLA description of the vehicle. In summary, a vehicle that has passed the Private Minibus test is unlikely to be accepted as a Private Hire Vehicle, that notwithstanding some Local Authorities may look upon an application sympathetically.

More recently schedule 6 (and 7) conversions have been used to licence the limousine to carry, for example, up to 14 passengers as a private minibus. In turn, limousine operators have then offered the vehicle on a ‘self-drive hire’ basis to anyone wishing to carry more than 8 passengers (typically up tp 14), provided they use an “approved” driver, who must be drawn from a group recommended by, but not directly associated with or by the limousine operator.  As a consequence of this policy, the vehicle does not need to have a Certificate of Initial Fitness, nor does the limousine operator need a Standard or Restricted Bus Operator Licence.

This method of hire is very contentious, supporters have argued that it is a perfectly legal way of operating and it would appear that this has been ratified by a Barrister with long experience of the transport sector. Others have argued that the limousine operator is hiring the vehicle in the full knowledge that the vehicle will be used for ‘hire and reward’ particularly where the costs are shared amongst the passengers and, that in effect, the limousine operator is complicit by failing to make clear to the hirer that should they accept part payment or profit from the hire of the vehicle, that they themselves could be charged with operating a vehicle for hire and reward without the proper licence.

At this time, no-one can truly argue that it is a legal practice, an expert such as a Barrister can provide an opinion, but that is all it is. Until this practice actually tested in court, it should not be described as a legal method of carrying over 8 passengers for hire and reward without the need for a Bus Operators Licence or a Certificate of Initial Fitness for the vehicle.

There is also a question over the insurance of the vehicle, all self-drive hire insurance policies state very clearly that the vehicle cannot be used for hire and reward. If the limousine operator’s policy retains this wording they could be exposed to have an unrecoverable loss in the event of an accident, where it was deemed that the vehicle was indeed being used for hire and reward. If the insurance company varies this term to allow the vehicle to be used for hire and reward, then it could be argued that they are either complicit in the whole arrangement, or that they recognise that the vehicle may be used for hire and reward. Whilst this practice may not lead to a successful prosecution of an insurer, it would be argued by the protagonists that the insurers morally wrong.

It is likely, though not inevitable, that the current legislation will be amended to prevent vehicles being registered via a schedule 6 or 7 conversion, in order that vehicle need not be subjected to the tougher requirements of an SVA or CoIF. In addition, it is not beyond the bounds of reason, that the current legislation will be amended to prevent companies from using the existing rules for something that was never intended when they were drawn up.

In summary, whilst a schedule 6 conversion may be an excellent shortcut to vehicle registration, it is most likely to be short-lived, in the same way that the interpretation of the SVA rules were varied to make it much more difficult to attain.

 Cars for Stars is a licensed operator of chauffeur cars and limousines in the UK and also operates a franchised limousine hire business.

Disclaimer:
Any information contained herein is provided in good faith and based on research and public documents available at the time. However, it is entirely the responsibility of the reader (or any other party) to establish the veracity of any of the claims or information contained herein through their own independent sources, including, but not limited to, their own accountants, legal advisors and contacts with the relevant licensing, industry or government bodies. Cars for Stars Limited accept no responsibility or liability for any errors, omissions or exceptions.