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Velvet Digest

Should trade plates cover number plates?

Author

Sophia Koch

Updated on June 14, 2026

Under this system, you do not need to have road tax for the vehicles in your care. If they have no MOT they can only be driven on the road if you are driving to a pre-booked MOT. If you have specialist motor trade insurance, trade plate use will usually be covered under the road risks section of the policy.

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In this way, what do trade plates cover?

Trade plates allow people working in the motor trade that are in temporary possession of a vehicle (or vehicles), to drive and move them without having to tax and register them first. This allows motor traders to save money and time!

Subsequently, question is, can anyone drive with trade plates? DVLA - Trade licence plates and who can use them. If you're a motor trader or vehicle tester, trade licence plates allow you to carry out your business without registering and taxing every vehicle temporarily in your possession. Trade plates cannot be used on unroadworthy vehicles.

In this manner, what are the rules on trade plates?

Trade plates must be used only for the particular business purposes for which they were issued. It is an offence to use more than one vehicle under a trade licence at any one time, and to keep a vehicle on a road when not in use except in certain emergency situations.

Do trade plates cover mot?

Under this system, you do not need to have road tax for the vehicles in your care. If they have no MOT they can only be driven on the road if you are driving to a pre-booked MOT. If you have specialist motor trade insurance, trade plate use will usually be covered under the road risks section of the policy.

Related Question Answers

Can you drive a Sorn vehicle on trade plates?

SORN cars on trade plates do not require road tax and the insurance would be covered by your motor trade insurance policy. However, it is still illegal to drive a SORN vehicle unless you are driving it to or from a pre-booked MOT testing centre.

How many cars can you have on a traders policy?

A standard home trader can have up to five vehicles on their policy. If you are trading from a premises you can have an unlimited number of vehicles covered on your policy.

How do I get a trade plate?

To apply for trade plates you need to head to the DVLA (click here). Trade licences last for either six or twelve months. They expire on 30th June or 31st December.

Can you carry passengers with trade plates?

PASSENGERS may be carried in a vehicle using a trade licence, unless the vehicle can carry only one person, provided they are carried in connection with a purpose for which the licence was issued. Note:- Trade plates should not be used on a vehicle which is carrying passengers for hire and reward.

Can you use trade plates without insurance?

Trade plates have nothing to do with insurance, this is a common misconception, its solely to allow motor traders and other people in the motor business to use a car without Tax for the express purposes of transporting the vehicle.

How much are trade plates?

Trade plates fees (Motor Vehicle Dealers)
Fee type Fee
Motor Vehicle Dealers: Trade plate annual fee $40.70
Motor Vehicle Dealers: Trade plate deposit $500.00
Motor Vehicle Dealers: Trade plate for Dealers (plate fee) $25.35
Motor Vehicle Dealers: Trade plate remake fee $34.00

What do trade plate drivers do?

A trade plate driver is a professional driver who collects and delivers vehicles for a living. The actual 'trade plate' is a special set of registration plates they carry to notify the police and other drivers that they are driving the vehicle in the capacity of a professional.

Do Motor Traders have to tax cars?

A. Any vehicle currently in the motor trade with a valid tax disc will continue to be taxed until the vehicle is sold. No refund will be paid where the vehicle is recorded as in the motor trade. For any refund to be issued there must be a registered keeper held on DVLA records.

How do I report a misuse of trade plates?

Hi, you can report the misuse of trade plates by emailing Trade[email protected] Please include the nature of misuse and any trade plate number used. A warning letter will then be sent to the registered holder of the trade plate.

What does red number plate mean?

Red Color Number Plate: This type of plate is used for the President of India and Governors of various states. In such vehicles, the license number is replaced by the "Emblem of India". It is important to mention here that the number plate of Prime Minister of India's car is of white color, like a common men's car.

Can a trader drive a car without tax?

As far as vehicle tax goes, you can drive vehicles without tax providing that you have valid trade plates.

Can you use trade plates on a motorbike?

You cannot use car trade plates on bikes or vice versa. Car trade plates = rectangular plate front and rear with a rectangular licence holder on the front plate. Bike trade plates = one square plate with diamond shaped licence holder in the centre of the plate.

How do I get car insurance with traders?

To even qualify for a Motor Trade insurance policy, you must first be able to provide evidence that you are running a business that generates a source of income, such as receipts from vehicles you've bought and sold, or documents showing vehicles you've worked on.

How do I renew my trade plates?

DVLA renewing trade licence plates step by step guide
  1. If you are no longer eligible or do not wish to reapply for your trade licence, you must fill in form VTL308 to surrender your trade licence and send it to DVLA, Swansea, SA99 1DZ.
  2. Reply to the DVLA's renewal notice promptly to allow us to check your application and return it to you as soon as possible.

How do I become a registered motor trader?

Registration is a simple process. There are two ways you can make an application to become a registered motor vehicle trader – online or paper. Online – the quickest and easiest way to complete an application is to use our online service available through the 'Register to be a trader' option.

Why do some cars have red number plates?

The black color states that the vehicle belongs to popular hotels and it is used to transport VIP. Usually, the black color plate is attributed to expensive cars. On the plate, the number is written in yellow color. The red colored plates are used in the vehicles of Governor or President.

How do you get a car traders Licence?

To get a car dealer license so you're able to sell cars, start by obtaining a business license from the U.S. Small Business Administration office near you. Then, apply for a surety bond with a bond company and sign a credit release agreement with them.

What country has red number plates?

Red number plates have been used on rental cars in Cyprus since 1973 where they followed the same number plate criteria of 3 letters followed by 3 numbers of regular number plates.

Are UK trade plates valid in Europe?

They have asked us to assist in clarifying that UK trade plates are valid for UK use only. Currently, there is no harmonisation of trade plates within the EU, and there are no reciprocal arrangements between the UK and any other EU state relating to the use of trade plates.