What penalties can a private hire vehicle accumulate, and how much do they cost?

Penalties for private hire vehicles are set out in the LOTT and its regulations, which classify offences as minor, serious and very serious — with fines that increase in line with this scale and specific amounts depending on the classification of each case. Rather than memorising figures, it is more useful to be familiar with the actual list of offences in the sector:

• Picking up passengers on public roads or without a verifiable pre-booking — the line between this and taxi services, and the most closely monitored offence. The correct procedure is set out in airports and pre-booking.
• Vehicle not in compliance: not properly registered, failing to meet the conditions required by the regional government, or lacking valid passenger insurance.
• Driver without a contract or not registered with Social Security: in addition to the employment penalty, this jeopardises the licence. Cross-checks do take place.
• Failing to comply with the territorial rule (the 80/20 rule) or lacking documentation proving the service.
• Failure to renew the licence on time — which, rather than just a fine, poses a risk of the vehicle being taken off the road, as we explain in Does the licence expire?.

For the owner and the buyer, it is not just the fine that matters: it is the impact that a history of penalties has on the property. Accumulated penalty records can complicate the next licence renewal and complicate a transfer — and a licence that cannot be transferred without complications is worth less, however long the proceedings take. That is why the penalty check forms part of the basic verification for every licence certified at VTC360, alongside ownership, encumbrances and registration: the buyer sees the traffic light system before discussing price, at the certificate.

Two practical rules. If you’re in business: keeping your paperwork in order (registered pre-contract agreements, up-to-date contracts and registrations, vehicle in good standing) is cheaper than any fine. If you lease your licence: the contract must state in black and white who is liable for each penalty — this is set out in the lease contract requirements — because the authorities will always look first to the licence holder.