Do I need a PSV licence for an activity centre minibus?
If the price of the activity includes the shuttle, usually yes. Here is how the rules work and which licence fits.
The short answer
- If customers pay for an activity and the price includes a shuttle, that payment gives them the right to be carried. The official guide calls this payment in kind.
- A minibus carrying 9 or more passengers used this way needs a PSV operator licence.
- A restricted licence can cover up to 2 vehicles of up to 16 passenger seats, where passenger transport is not your main business.
- A third vehicle, or running transport as a business in its own right, means a standard licence.
A worked example
An outdoor activity centre sells a rafting session at £60 a head.
What happens
Customers change at the centre. Two minibuses take them and the guides to the start point, 3.5 miles away. The minibuses wait at the finish and bring everyone back. Nobody pays for the shuttle separately.
Is it hire or reward?
Yes. The £60 gives the customer the right to be carried as part of the booking. The guide says payment can be indirect and lists concert tickets where travel is included as an example.
Which licence?
A restricted licence fits: 2 minibuses, up to 16 seats each, and transport is there to support the activity, not to run a passenger transport business. This is how a working activity centre operates today.
How the rules work
Three questions decide it.
1. How many seats?
With 9 or more passenger seats, the vehicle is a PSV when it is used for hire or reward. With 8 or fewer, it is only a PSV if each passenger pays a separate fare.
2. Is it hire or reward?
It is any payment in cash or kind that gives a person the right to be carried. It does not have to be money, and it does not matter whether the ride is taken or a profit is made.
3. Which licence?
A restricted licence covers up to 2 vehicles. For 9 to 16 seats, the use must be outside a passenger transport business, or by someone whose main occupation is not running PSVs.
Check before you rely on it
A third vehicle
Two is the most a restricted licence can authorise. Busy days or a breakdown can push you past it.
Seat counts
Each minibus must be adapted to carry no more than 16 passengers. A larger vehicle needs a standard licence.
Your main business
For a limited company, the test looks at the company's main business. Make sure the company holding the licence is the activity business.
Your drivers
Driver entitlement and checks are separate from the operator licence. This guide does not cover them.
Common questions
Does an activity centre need a PSV licence for its minibuses?
Currently you need a PSV operator licence if a minibus carrying 9 or more passengers is used for hire or reward. If customers pay for an activity and the price includes the shuttle, the payment gives them the right to be carried, so it is likely to count.
We do not charge for the shuttle. Does it still count?
Probably yes. GOV.UK guidance says hire or reward is any payment in cash or kind that gives a person the right to be carried. It says the payment does not have to be money and can be indirect, and lists concert tickets where travel is included as an example. A separate shuttle charge is not needed.
Can an activity centre use a restricted licence?
In many cases, yes. A restricted licence covers up to 2 vehicles. For 9 to 16 seats, the use must be outside a passenger transport business, or the licence holder's main occupation must not be operating PSVs.
What if we need a third minibus on busy days?
A restricted licence authorises a maximum of 2 vehicles. A third vehicle means a standard licence. Check the rules before you use a hired-in replacement.
What about the drivers?
The operator licence is separate from the drivers' own driving entitlement and checks. This guide does not cover driver entitlement, so check it separately.
What happens if I run the minibuses without a licence?
Using a PSV for hire or reward without a PSV operator licence is an offence under section 12 of the Public Passenger Vehicles Act 1981, and the operator can be fined.
Who is responsible?
A restricted licence needs no transport manager. But the person responsible for the licence must carry out the same duties as one, to the same standard as a standard licence. That covers driver licence checks, drivers' hours, vehicle maintenance and defect reporting.
A limited company does not shield the people in charge. A traffic commissioner can disqualify a company or an individual from holding a licence.
Read the full restricted licence guide · Hotel minibus guide
Annexe: sources and notes
Official sources
- PSV operator licensing guide (GOV.UK): hire or reward, restricted licences
- Public Passenger Vehicles Act 1981, section 12: licence required
- Public Passenger Vehicles Act 1981, section 13: standard and restricted licences
- Transport Act 1985, section 28: disqualification
Notes
- Rules last checked 23 October 2026.
- The GOV.UK guide lists indirect payments, such as concert tickets where travel is included, as hire or reward.
- The GOV.UK guide gives use in connection with a hotel business as an example of use outside a passenger transport business.
- This guide is general information about the rules as they currently stand and is not legal advice. How the tests apply depends on the facts of each operation, so check your own set-up before you rely on it.