• Online Event Recap: Understanding the Exclusively Non-Commercial Purposes Exemption

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    • Online Event Recap: Understanding the Exclusively Non-Commercial Purposes Exemption
    • by Tim Cairns
      Director of Policy and Nations

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    On 25 February we held an event looking at the Department for Transport’s updated guidance on the exclusively non-commercial purposes exemptionone of three possible exemptions from holding a PSV Operators’ licence that community transport providers can use when applying for a Section 19 or 22 Permit. This was an event for CTA members; you can find a short overview of the event below and a full recording, slides and all our resources on permits and operator licensing in the members’ area of our website here.

    Event Overview

    In 2018 the Department for Transport commenced a consultation on the use of section 19 and 22 permits. The consultation focused on the exemptions under EU law that allow community transport operators to use a permit to deliver services. In December of last year, the Department finally issued its guidance based on the 2018 consultation. Our seminar was an introduction to that guidance and was aimed at helping members to understand how we got here, what the guidance means and how best to apply it to their services.

    It is important for members to understand what exemption they can operate their services under. In this seminar, members were helped to think through what work they undertake and how best to apply for and utilise the correct exemption. Anneessa Mahmood, our Director for Member Services explained the ‘Main Occupation Exemption’ and ‘The Short Distance Exemption.’ Anneessa pointed out the main legal and regulatory considerations members face, what organisations should look like, and what they should do if they feel they qualify for these exemptions.

    Tim Cairns, Director for Policy and Nations, examined the ‘Exclusively Non-Commercial Exemption.’ This exemption is the one that has received the most focus and attention over the past few years. Tim, walked members through the judicial review judgment from December 2019 and looked at what to do if you make a surplus, what the court judgement means for cross subsidy, whether the size of your organisation matters, and whether community transport can still operate contracts. Tim highlighted that members will need to undertake a thought process that clearly links their organisational purpose to non-commercial activities. Anneessa highlighted what organisations will need to do to ensure that they are carrying out that thought process and what organisations need to consider when it comes to their finances.

    If you want to know which exemption you should use and how the new Department for Transport guidance relates to your organisation, then this seminar is a great introduction. Over the next few weeks CTA will be running more seminars and events aimed at helping organisations to navigate the thought processes involved and getting their finances right. More information will be issued on those events shortly.

    Event Recording, Slides and Resources

    You can a full recording of the events and the slides we used, as well as all our resources on permits and operator licensing in the members’ area of our website here including a short video looking specifically at the exclusively non-commercial exemption to help you decide which exemption applies to you as well as flow charts, an overview of permits and operator licensing and a number of info sheets.

    As ever, if you have any questions or need any support, you can contact the CTA advice team via advice@ctauk.org.

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