Home Advice Legal Requirements for Motor Trade Businesses in the UK Explained

Legal Requirements for Motor Trade Businesses in the UK Explained

Car lot
Image by Dimitris Vetsikas from Pixabay

If you are the owner or manager of a motor trade business, you’ll face many of the same rules and regulations as private motorists.  But there are also a few key differences you need to bear in mind. Let’s take a look.


Motor Trade insurance
Image by Tumisu from Pixabay

If you own or manage a business that specializes in selling, repairing, demonstrating, collecting, or delivering vehicles, a regular car insurance policy usually won’t meet your needs. Motor trade insurance will be needed instead.

Fortunately, there are specialist price comparison sites that can help you compare quotes for motor trade insurance online, which means you stand a good chance of finding a suitable policy at a fair price if you use one of these sites.

Car Tax

Some cars are not required to be taxed due to their lower (or zero) levels of emissions. This rule doesn’t apply across the board, though, and the rate of tax changes depending on the vehicles.  

In the past, the UK required visible car tax discs to be displayed in the car. However, this tradition has now been discontinued, and there is no requirement to display this. There are cameras on many roads that would pick this up if non-compliance.  The owner of the vehicle would receive a fine. Having no road tax when required could also invalidate your insurance.


Car inspection
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Cars are required to be safe, and as a result, the UK has the MOT process where an approved mechanic must check cars. The first three years of any new car do not need this, and the car should just undergo normal servicing. If a car fails its MOT, it is important that the repairs to the car happen within the defined period.  Plus that the vehicle is then re-checked to ensure compliance. Similar to car tax, if you do not have a valid MOT certificate and it is required, the car motor insurance will be invalidated. 


It is important that you keep yourself familiar with these three points.  Plus ensure compliance when it comes to the vehicles that you use for your business. The police are not sympathetic to anyone who does not comply with this and drives a motor vehicle without the correct approvals. Make sure that your business vehicles comply with this.