Compliance under the spotlight: what operators need to know in 2026

Backhouse Jones examines three important areas of road transport compliance: preparing for Traffic Commissioner public inquiries, engaging HGV drivers correctly, and meeting the new tachograph requirements for light goods vehicles operating internationally.

For removals, storage and logistics operators, compliance is not simply a back-office responsibility. It is an operational discipline that affects vehicles, drivers, customer commitments, commercial reputation and, ultimately, the ability to keep an Operator’s Licence.

Three issues are particularly important this year.

The common thread is straightforward: operators must be able to demonstrate effective control, documented processes and a willingness to identify and correct shortcomings. Backhouse Jones outlines what this means in practice.

1. Traffic Commissioner public inquiries: act early, evidence everything

Most HGV and PSV operators will be familiar with Traffic Commissioners and their role in regulating commercial vehicle and passenger transport across the UK. But many operators do not fully appreciate how quickly an operational issue can develop into a formal hearing, or how much difference an early and properly documented response can make.

Traffic Commissioner hearings are generally known as public inquiries, although preliminary hearings may also be held. They provide a forum for the Commissioner to consider whether an operator is fit to hold, obtain or vary an Operator’s Licence, and whether the business is meeting its obligations.

There are several routes into a public inquiry. A common example begins with a vehicle being stopped at the roadside and issued with a prohibition. This may lead to a DVSA investigation, including a TEVR, MIVR or desk-based assessment. In other cases, the Traffic Commissioner may require further evidence before deciding whether to grant or refuse an application, or may need to consider an objection to an application or requested licence variation.

The key point is that a public inquiry should never be viewed as the first opportunity to deal with a problem. There are multiple stages at which an operator can take constructive action and improve the prospects of a positive outcome.

The first is when the problem arises. This could be a missed defect during a walkaround check, an incomplete maintenance record, a driver-hours concern or a roadside prohibition. The second is when an investigation begins and DVSA decides to refer the matter to the Office of the Traffic Commissioner. The third is when notice of a public inquiry is received. The inquiry itself is then an opportunity to demonstrate compliance, candour and a credible plan for the future. Finally, operators must respond properly to the outcome of the hearing and any conditions or directions imposed.

At every stage, the practical approach should be the same: investigate the issue fully, establish clear corrective actions, complete those actions and retain evidence that this has happened. It is not enough to say that a problem has been addressed. An operator needs to be able to prove what was done, when it was done and how it will prevent recurrence.

Consider a removals operator completing a house move when a vehicle receives a roadside prohibition for a tyre defect. A subsequent review reveals that drivers’ walkaround checks are not being completed to the required standard. The strongest response would not be simply to deal with the individual vehicle. It would include investigating the driver’s conduct, considering disciplinary action where appropriate, delivering refresher training to all drivers, reviewing the inspection process and strengthening gatehouse or departure checks.

Those steps should then be recorded carefully. Driver training records, disciplinary documentation, vehicle-file notes, revised procedures and evidence of management checks all help show that the operator has taken the matter seriously. If a hearing follows, this material can provide the Traffic Commissioner with reassurance that the operator has learned from the issue and can be trusted to operate compliantly in the future.

A public inquiry has similarities to a court hearing in that it is chaired by the Traffic Commissioner, evidence is presented and questions are asked. However, each inquiry can proceed differently depending on the circumstances. Evidence is not given under oath, but the regulatory system is founded on trust. Witnesses are expected to be direct, accurate and honest.

The Commissioner may give an outcome at the end of the hearing or provide a written decision within 28 days. Possible outcomes include refusing to grant or vary a licence, adding conditions, imposing financial penalties on registered bus service operators, suspending or revoking a licence, or disqualifying individuals, companies or transport managers. The outcome every operator wants, of course, is for no action to be taken against the licence.

The message is clear: do not wait for a public inquiry to begin fixing the problem. Early intervention, thorough investigation and robust records can have a material impact on the outcome.

2. Self-employed HGV drivers: a high-risk arrangement

The engagement of self-employed HGV drivers has been a long-running concern in the sector, but it is now regularly featured in Traffic Commissioner public inquiry case directions. Operators who rely on self-employed, limited-company or agency driver arrangements should review them carefully.

The current expectation is that operators demonstrate compliance by showing drivers are directly engaged as employees or workers. Temporary drivers may also be supplied by a genuine agency serving multiple operators. However, arrangements described as “self-employed” will be examined closely, particularly where the reality of the working relationship does not match the label.

There are two regulatory perspectives to consider. HMRC’s concern is employment status and tax compliance. It has stated that it is very rare for a commercial vehicle driver to be genuinely self-employed unless they are an owner-driver with their own vehicle and Operator’s Licence. A driver who is labelled self-employed but is, in reality, working as an employee or worker may be missing employment-related protections and benefits such as pension contributions, holiday entitlement, sick pay and National Insurance arrangements.

Traffic Commissioners are also concerned, but for different reasons. Improper self-employed arrangements can distort competition, allowing some operators to reduce labour costs unfairly. More importantly, they may undermine an operator’s ability to demonstrate continuous and effective management of its transport operation.

The Upper Tribunal’s decision in the Bridgestep case is an important example. During the public inquiry, it emerged that many of the operator’s drivers had contracts claiming that the operator did not supervise, direct or control them. The Traffic Commissioner concluded that the self-employed label was not accurate and that such an arrangement was inconsistent with the responsibilities of an Operator’s Licence holder. The licence was revoked.

The decision was upheld on appeal. The Upper Tribunal found that, unless a driver is an owner-driver, genuine self-employment will be very rare. Drivers will normally work personally under the operator’s control, rather than operating their own independent business. In Bridgestep, the arrangements were found to be anti-competitive and inconsistent with the company’s and transport manager’s obligations to manage the transport operation effectively.

The use of limited companies does not provide a simple workaround. An operator may, for example, pay ‘G Smith Limited’ rather than directly paying Mr G Smith. But this arrangement can create a different and equally serious problem.

The public inquiry involving Quick Road Transport Ltd demonstrated that the Traffic Commissioners will not tolerate arrangements that amount to unlawful subcontracting. Where drivers were engaged through their own limited companies, the Traffic Commissioner concluded that the operator had effectively subcontracted work to those businesses. This meant each of the limited companies should have held its own Operator’s Licence. Because they did not, the use of the vehicles was unlawful and the operator’s licence was revoked.

Agency drivers can be used legitimately, but the arrangement must be genuine. An agency should serve multiple operators, and the operator must not use it as a front for what are really self-employed drivers. Even where the agency relationship is proper, operators retain responsibilities.

The Enero Logistics Ltd case illustrates this point. The Traffic Commissioner confirmed that operators must meet their obligations under the Agency Workers Regulations 2010, provide appropriate induction and exercise the same level of supervision and oversight that they would apply to directly employed drivers.

For operators, the practical response is to review all driver engagement arrangements now. Drivers should normally be engaged as employees or workers, or supplied on a temporary basis by a legitimate agency. A genuine owner-driver may be different, but those situations will be exceptional. The way in which drivers are engaged must also support, rather than weaken, the operator’s ability to maintain proper control and protect good repute.

3. New tachograph rules for LGVs: 1 July 2026 deadline

From 1 July 2026, important new tachograph rules apply to certain light goods vehicles used internationally.

LGVs over 2.5 tonnes that are used for international hire-and-reward journeys between the UK and the EU must be fitted with a Smart Tachograph 2. Operators and drivers using these vehicles must also comply with the assimilated drivers’ hours rules.

This change is especially relevant for removals, storage and logistics businesses that use vans or light trucks for cross-border work. A vehicle that might previously have been treated as a relatively straightforward international van operation may now require tachograph equipment, driver-hours management and associated compliance controls.

The rule applies where the vehicle is over 2.5 tonnes and is being used on an international hire-and-reward journey between the UK and the EU. In practical terms, where the business is being paid to undertake that cross-border transport, operators need to assess whether each affected vehicle has the required Smart Tachograph 2 installed and whether their systems are ready to manage the data and drivers’ hours obligations that follow.

There are limited situations where the requirement does not apply. A Smart Tachograph 2 is not required where the vehicle is being used internationally for the driver’s or operator’s own account, provided driving is not the driver’s main activity. It is also not required for vehicles over 2.5 tonnes but under 3.5 tonnes that operate solely within the UK.

Operators should not leave preparations until the last moment. DVSA has indicated that average lead times for tachograph fitting appointments are around four to six weeks. Businesses affected by the change should therefore identify relevant vehicles, confirm whether the work is hire and reward, arrange installation where required, and ensure drivers and managers understand the applicable drivers’ hours rules.

This is also an opportunity to review internal processes. Operators should consider who is responsible for checking tachograph compliance, downloading and reviewing data, identifying infringements and ensuring that affected drivers receive appropriate training. As with all transport compliance, a system only works where there is clear ownership, routine oversight and evidence that issues are addressed.

Across public inquiries, driver engagement and tachograph compliance, the lesson is the same. Regulators expect operators to know how their businesses are operating in practice, not simply how they are described on paper. Proactive checks, effective management and good records remain the best protection for an Operator’s Licence and the business built around it.

For further advice or regulatory support, contact Backhouse Jones.