How to start a chauffeur business in the UK

A lot of people start a chauffeur firm believing that executive work, corporate clients or a long contract puts them outside taxi licensing. It doesn't, and it hasn't since 2008. This guide covers the licences, the two narrow exemptions, the cars, the insurance and where chauffeur work comes from, with the law quoted from source. It covers England and Wales, including London; gov.uk notes that Scotland and Northern Ireland license operators differently.

Do you need a private hire licence to run a chauffeur business?

Yes. In law a chauffeur car is a private hire vehicle. Section 80 of the 1976 Act defines one as a motor vehicle seating fewer than nine passengers, provided for hire with the services of a driver. Outside London, section 46 of the Local Government (Miscellaneous Provisions) Act 1976 makes it an offence to operate a private hire vehicle without an operator licence, to drive one without a private hire driver licence, or to use a car that has no vehicle licence.

London says the same thing in plain words. TfL's guide for operator applicants says you need an operator licence if you supply "limousines for corporate use, chauffeur services, diplomatic cars", and it lists one-person chauffeur services among the businesses it licenses.

So a chauffeur business needs three licences, all from the same licensing authority, which gov.uk confirms:

• a private hire operator licence for the business, which lasts up to five years;
• a private hire driver licence for each chauffeur, you included if you drive;
• a private hire vehicle licence for each car.

The old escape route has gone. Section 75(1)(b) of the 1976 Act used to exempt cars used only under a contract for hire of at least seven days. The Road Safety Act 2006 abolished that "contract exemption", and section 75(1)(b) was omitted from 28 January 2008. A signed contract with a client changes nothing about licensing.

For the operator licence itself, our guide to the private hire operator licence in the UK goes through the application step by step.

What do the wedding and funeral exemptions actually say?

Section 75(1) of the 1976 Act lists things the taxi and private hire part of the Act doesn't apply to. Paragraphs (c) and (cc) read, in full:

(c) apply to a vehicle while it is being used in connection with a funeral or a vehicle used wholly or mainly, by a person carrying on the business of a funeral director, for the purpose of funerals; (cc) apply to a vehicle while it is being used in connection with a wedding;

Read the words "while it is being used". The wedding exemption covers the car on the wedding job. It doesn't cover the car, the driver or the business the rest of the week. If the same Rolls-Royce does a wedding on Saturday and an airport run on Monday, Monday's journey needs a licensed operator, driver and vehicle.

The funeral exemption is wider in one respect. A car used wholly or mainly by a funeral director for funerals is exempt as a vehicle, not only while it's on a funeral.

London is stricter in practice. TfL's applicant guide says the exemption is for companies or individuals who supply vehicles solely for weddings or funerals. Do proms, hen nights or corporate work as well, and you need a TfL operator licence. Gov.uk's limousine page says limousines with up to 8 passenger seats don't need a licence for weddings and funerals.

Can a chauffeur car run without council plates?

Often, yes, if your council agrees. Section 75(3) of the 1976 Act lets the council give the proprietor a written notice that the plate rule doesn't apply. Councils use it for executive and chauffeur cars, and each one sets its own policy.

Two examples show how different the policies are:

• Eastleigh Borough Council grants exemptions only for vehicles offering an executive or chauffeur service that it considers high-specification executive cars. You apply by letter or email, name the make and exact model, and send letters from companies that want to use your executive contract service. The rear plate travels in the boot with the exemption certificate, and the small windscreen plate stays on display.
• Braintree District Council only takes applications from operators it licenses. The car must be no older than three years at first application (ten for limousines) and larger than a Ford Mondeo class car, normally a recognised luxury brand. Approved work includes corporate events, conferences, exhibitions, meetings, chauffeured services and school proms. No taximeter, the exemption notice is carried at all times, and the vehicle licence fee is the same as for a plated car.

There's also a narrower rule in section 75(1)(d)(ii): the Act can't require a plate, disc or notice to be displayed while the car is carrying passengers under a contract for hire of at least 24 hours.

In London, every PHV must display TfL's licence discs, but TfL will consider an exemption, weighing exceptional circumstances, the nature of the work and passenger security.

Which cars work for a chauffeur business?

The car your council will license and your clients expect. Read your council's vehicle policy before you buy anything, because age limits and size rules vary from council to council.

Three rules matter whatever your council:

1. Up to 8 passenger seats is private hire. Gov.uk says small limousines seating up to 8 passengers need a PHV operator licence, and large limousines seating 9 or more need a public service vehicle (PSV) operator licence from the traffic commissioner.
2. Stretched limousines need proper approval. Gov.uk says they must have Individual Vehicle Approval to be registered and licensed; a Certificate of Initial Fitness is accepted for those built before 29 July 2011. Unlicensed limousines can be seized and destroyed.
3. Tell the booker before you send a bigger vehicle. The Statutory Taxi and Private Hire Vehicle Standards say that if a job needs more than eight passenger seats, the booker should be told a PSV and a PCV-licensed driver will be used, because that driver faces different checks and no enhanced DBS check.

In London, any car licensed as a PHV for the first time must be zero emission capable and meet Euro 6, a rule TfL has applied since 1 January 2023. Our guide to choosing vehicles for a taxi fleet covers running costs and resale.

What insurance does a chauffeur business need?

At least three policies: hire and reward motor insurance on every car, public liability cover for the business, and employers' liability as soon as you employ anyone.

Hire and reward. Carrying paying passengers needs hire and reward cover. TfL asks to see hire and reward insurance documents at every vehicle inspection, so check what proof of cover your own council asks for.

Employers' liability. Gov.uk says you must have it as soon as you become an employer, covering you for at least £5 million, and you can be fined £2,500 for every day you aren't properly insured.

Public liability. TfL's licence conditions require at least £5m for any one event at any operating centre the public can walk into. Outside London, check your council's conditions.

Self-employed chauffeurs who drive for you raise their own questions about cover and status, which our guide on self-employed or employed taxi drivers works through. For quotes and policy types, see taxi business insurance.

Where do chauffeur clients come from?

From businesses and venues, booked ahead, often on account. Treat this as a list of places to look, not a forecast:

• Corporate accounts: board meetings, roadshows, visiting clients, staff to and from airports. These clients want a named contact, receipts and a record of who travelled.
• Hotels and venues: guests who want a car booked through reception, and events that need several cars at once.
• Airport meet and greet: arrivals collected inside the terminal, which means car park charges built into your price.
• Weddings: exempt work, and guests who liked the car may book you again.
• Proms and celebrations: seasonal, and licensed private hire work.

Answer quickly and look organised. When a client's PA rings at 7pm to change tomorrow's pickup, someone needs to pick up. Our guides to winning corporate taxi accounts and hotel and venue partnerships go deeper on both.

Dispatch AI is booking and dispatch software for taxi and private hire firms. It answers your phone, WhatsApp, texts and emails, books the jobs at your prices and sends them to your drivers on your own app, and it offers the extras you sell, such as meet and greet or booking the return. There's more on what to look for in chauffeur booking software.

What are the steps to start a chauffeur business?

In order:

1. Decide where you'll be based. That decides your licensing authority: your council, or TfL in London.
2. Set up the business, as a sole trader or a limited company. Our guide to registering a taxi company covers the options.
3. Read your council's private hire policy, including any executive car or plate exemption policy, before you buy cars.
4. Apply for the operator licence.
5. Get each chauffeur licensed as a private hire driver. The statutory standards expect councils to run an enhanced DBS check with both barred lists, and to check drivers on the DBS Update Service every 6 months.
6. Buy or lease cars that meet the council's vehicle policy, license them, and apply for any plate exemption.
7. Arrange hire and reward, public liability and employers' liability cover.
8. Set up your booking system so it records every job before it starts, as section 56 of the 1976 Act requires outside London.
9. Diary your renewals. When you renew, you'll need an HMRC tax check code with the application.