It is important to consider the consequences to your VOL when making any change to your business structure or ownership.
Significant changes to your business structure may not be covered by a variation application. If there are changes to the entity of a business, this may require a brand new VOL application. The existing VOL could no longer be valid.
Let’s look at three scenarios:
1. Limited Company Acquisition with no Rebrand
If a limited company acquires another limited company but it wants to keep the business trading in the original company name, the only change likely to be required is a change of Directors on the VOL. If the company name, Companies House registration and bank accounts all remain the same, the change can be made in the online portal. New directors may need to submit evidence of funds, but this would usually be triggered as a follow up action, rather than something that needs to be evidenced in order to make the change.
2. Limited Company Acquisition with Rebrand
If a limited company buys another limited company, which it wants to rebrand as something else, then a brand new application is required because the new entity will need authorised.
3. Changes to the Company Type
Changing from a sole trader to a partnership; a sole trader to a limited company; or a partnership to a limited company requires a brand new application in the new business name.
With a limited company you can make an application as soon as money is paid into the bank account for the new entity, but a financial condition will be attached to the licence granted. Usually this will require that you will submit statements to prove you have enough funds to operate the business within three months of the licence being granted.
If you need help with a new VOL application, you can start by reading our advice on making an application here.
Upgrading the Licence Type
When upgrading a licence type from a restricted licence to a standard (national) or standard (international) licence, or when changing from a standard national to standard international, a variation application must be submitted.
Whilst there is no fee payable for this variation application, be mindful that there are significant differences in the financial evidence required for a standard (national or international) licence than a restricted type. You can read more about evidencing financial standing for each licence type here.
When moving from a restricted licence to a standard licence, you will need to add a Transport Manager to your licence.
If you need expert help with any vehicle operator licence application or variation, please contact John on +44 7894 140796 or info@ajttc.co.uk.