Do I need a PSV licence for a hotel minibus?
Usually, yes if it carries 9 or more passengers. Here is how the rules work and which licence fits.
The short answer
- A minibus that carries 9 or more passengers needs a PSV operator licence when it is used for hire or reward.
- Hire or reward includes payment in kind. The official guide gives payment for a bed in a hotel as an example.
- A restricted licence can cover a hotel minibus of up to 16 passenger seats, with a maximum of 2 vehicles.
- More than 2 vehicles, or running passengers as your main business, means a standard licence.
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?
The guide says it is any payment in cash or kind that gives a person the right to be carried. That applies whether or not the ride is used, and whether or not you make a profit. Payment for a bed in a hotel is one of its examples.
3. Which licence?
A restricted licence covers up to 2 vehicles. For 9 to 16 seats, it must be used outside a passenger transport business (the guide mentions a hotel business), or by someone whose main occupation is not running PSVs.
Examples
How it works in practice.
One 16-seat minibus for guests
The hotel runs it to bring guests from the station. It supports the hotel business, so a restricted licence can cover it.
Two minibuses
Two vehicles is the most a restricted licence can authorise. Both can be covered if they meet the same conditions.
Three minibuses
A restricted licence is limited to 2 vehicles. Three means a standard licence.
Selling transfers to the public
This is less clear, because it looks more like a passenger transport business. Ask before you start.
Common questions
Do I need a PSV licence for a hotel minibus?
Currently you need a PSV operator licence if your minibus carries 9 or more passengers for hire or reward. GOV.UK guidance counts any payment in cash or kind that gives a person the right to be carried, and gives payment for a bed in a hotel as an example. A minibus that is part of what guests get when they book is therefore likely to count.
Is a free hotel shuttle exempt?
The guidance does not say. It defines hire or reward as any payment in cash or kind, whether or not a profit is made. A shuttle included with a booking is likely to count. A genuinely free service with no link to any booking is not addressed, so ask before you assume you are exempt.
Can a hotel use a restricted licence?
Yes, in many cases. A restricted licence covers up to 2 vehicles. For vehicles with 9 to 16 passenger seats, the use must be outside a passenger transport business (the GOV.UK guide gives use in connection with a hotel business as an example), or the licence holder's main occupation must not be operating PSVs.
What if the hotel vehicle has 8 passenger seats or fewer?
A vehicle with 8 passenger seats or fewer is only a PSV when it is used for hire or reward and each passenger is charged a separate fare. Hotel lifts with no separate fares are not usually covered, but check your own set-up.
What happens if I run a hotel minibus 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.
Annexe: sources and notes
Official sources
- PSV operator licensing guide (GOV.UK): definitions, 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 does not directly address a courtesy shuttle that is free and not connected to any booking.
- 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.