New Minibus Company Questions

[johnsmallbone1989]

Hi all,

I am looking at starting my own buisness driving a minibus locally. I have had my car licence for 5 years and 4 years no claims ( i took a year out to travel) and i am aware that i am going to need my D1 and CPC but i don't want to get these until i know my idea is viable and realistic. I think there is a great gap in the market where i live for an 'upmarket' minibus company running groups into town and on day trips, the problem is i have no idea where to start, i have looked into this and have the following major questions.

Roughly how much am i looking at to insure a 16 seater minibus in manchester? i know its much more than a car but how much? and do i need seperate public liability insurance?

Roughly what percentage of my earnings will i have to pay in tax and NI, i obviously need to know what i am going to have to set aside each month to pay Mr Tax Man?

I read somewhere about a Tacho, will i need one of these?

And finally, Are there any other finances i am going to need in order to set up the company other than those i will need to buy the bus, get my licence, insure and tax it and put diesel in it?

All support and help appreciated

John

 

[Rpl85]

Your major stumbling block will be the need to have an Operator's License. Google it and you'll see.

 

[johnsmallbone1989]

i thought this was only for couriers of haulage companies, i didn't realise this was for minibusse too.

will i need one of these with a 12 ot 15 seater?

what is the challange in getting an operators licence?

thanks

john

 

[Rpl85]

Yes, I believe you will. I think it's anything over 8 seaters.

The challange is, amongst other things:
- strict maintenace rules
- ability show financial capability
- suitable facilities to keep the vehicle
and most difficult... be, or employ a qualified Transport Manager (experience and qualifications).

I don't want to put a downer on your plan but this halted my idea. If it's more than an 8 seater it's tough

 

[johnsmallbone1989]

i appreciate the advice, i wouldn't have known any of that where it for you.

so whats the deal with 8 seater then, if i came down a size instead of 16 seater, how would i go about that? is this something you've done?

Thanks again

John

 

[GARAGE&TRANSPORT SUPPLIES]

It may be that 8 seaters come under the same rules as taxi's as opposed to a minibus.
You needn't be too daunted by the process.
As said, you will need to show that you have sufficient funds to prove that you can afford to maintain it to the required standard and you will need to take your CPC course to get your poerators licence.
If you don't have suitable premises, then a local repairer will normally let you nominate theirs, either for a fee, or on the understanding that they will carry out your servicing and repairs.
I'm sure you'll need public liability insurance and possibly a CRB check.

 

[alasdair1982]

Hello

The 1st thing you need to do if you are operating anything over 8 seats for hire or reward is apply for your operators license. You can get info at vosa . gov. uk

You'll need to apply for either a restricted or Standard license. Basically a restricted will allow you to run up to 2 vehicle with a max 16 seats but they must either be as a compliment to an existing business or not your main source of income. If this is your only business and source of income and you cannot prove otherwise then you'll probably need a standard national. I would try the restricted route first as this is easier to get

Basically to comply you need to provide a maintenance contract or schedule if you are doing your own and have suitable premises etc, Proof of good financial standings, a good criminal record and and operating centre with pp for the operation of minibuses from there. I am pretty sure your drive will not be good enough

The level of financial standing is for the 1st vehicle for a restricted is £3100 and for a 2nd is £1700 which you have to prove that you have available with 24hrs to operate the vehicles. You have to send 3 months bank statements or an opening balance of a new account covering this amount as a minimum

It is not hard to get a license but you also need to do it right as the penalties for running with wrong licenses will out way any reward.

Also beware of insurance costs as they are probably more expensive than you are thinking, And if your under 25 then this will be considerably higher

Please don't underestimate the running costs, i run a commercial workshop and also operate minibuses and the amount of customers of mine that have got there license and expect to maintain there buses just once a year at mot is very real. You need to be planning maintenance at a minimum every 10 weeks and that is for low mileage, you more likely be on 6 - 8 week intervals and if your outsourcing maintenance then you ll be paying at least £50 per hour for maintenance.

I maintain and prepare bus and coaches for mot and know how much these cost to keep safe and legal. I have just tested a 16 seater 04 VW LT and his mot bill was over £1400 and he has inspections every 10 weeks, however there was a few items we were putting of until the test. But this figure is not far from the truth. Over the past year i have tested 30 -40 minibuses and the bill are generally at least £1k for mot.

As long as you budget for it it wont be a problem but please please do. I see so many operators who just have not got the money to keep their passenger carrying vehicles in a safe manner and as a result lose business rapidly.

alasdair

 

[alasdair1982]

Also have a look at the bus and coach buyer magazine, you can view online just google the name. For an upmarket 16 seater minibus your looking at around the £25k for a 5-6 old minibus with proper spec and i know people who have bought 16 seater execs for £55k plus.

Once you start trying to market an upmarket minibus service people expect upmarket and buying a minibus of ebay for a couple of £1000 won't do. They want coach comfort in a spacious minibus with servery dvd etc and above all comfy seating with tables.

I know plenty of people who earn more money on your day to day transport instead of upmarket as there are plenty of companies that have the relevant vehicles to cope with the upmarket section. Maybe look at more down to earth transport ie swimming contracts, day care centres, old folks days out, theatre, night club runs etc. there appears to be a lot more of this sort of work available and the last thing you want to do is put your fancy upmarket vehicle that you have spent a fortune on getting ruined on day to day jobs that fill the gaps.

Maybe do what i did buy 2 minibuses 1 upmarket and 1 basic 16 seater.

If you want any help please message me

 

[arcon5]

Not only will you need an operators license, each driver may also require a 'private hire drivers license' from the council in roder to operate a vehicle used as 'hire and reward'.

I cannot be certain on this point... but it is my believe that to drive a vehicle with 9+ passengers requires a new category entitlement on your FULL UK Driving License.

I'm not sure what you would pay for Private Hire Insurance on the sized vehicle you refer to, but on a std 5 seat (inc.driver) car, it can range from £1,200 - £3,000 depending on your age and any endorsements.