Trade plates are temporary registration plates issued by the Driver and Vehicle Licensing Agency (DVLA). They allow motor traders and vehicle testers temporary vehicle movement to drive untaxed and unregistered vehicles on public roads strictly for business purposes.
Trade plates can be transferred between cars as needed and this flexibility is particularly useful for dealers, mechanics, and motor trade professionals who frequently move vehicles for various reasons, such as repairs, sales, or testing. This system helps streamline operations for garages, dealerships, and repair shops without the need to tax every vehicle individually.
Using trade plates helps businesses comply with legal requirements, simplifies record-keeping, and ensures that all vehicles operated under trade plates meet necessary safety and insurance standards.
✅ How to use Trade Plates legally
Trade plates can only be used legally for specific business-related activities, including:
- Test drives after repairs or servicing
- Deliveries of vehicles to customers
- Transporting stock between locations
- Driving to or from a pre-booked MOT test
- Road testing vehicles for mechanical assessment
- Demonstrating vehicles to potential buyers
❌ Illegal Uses of Trade Plates
Using trade plates outside their legal scope is a serious offence. You must not:
- Use them for personal travel (e.g. commuting, shopping)
- Drive vehicles that are not roadworthy, uninsured, or without a valid MOT (unless en route to a pre-booked MOT)
- Park vehicles with trade plates on public roads unless actively engaged in business use
- Allow non-employees or customers to drive vehicles with trade plates unless supervised and for business purposes
Applying for Trade Plates
To apply for trade plates, you must be eligible as a motor trader, vehicle tester, or business involved in vehicle manufacture, repair, or delivery. The VTL301 form (found on the GOV.UK website) must be completed, and proof of business must be shown through registration documents, insurance details, or evidence of trade activity.
Six months is the minimum licence you can apply for, so a fee will need to be paid, for a 6-month or 12-month licence. Once your business has the trade plates, they must then be registered on the Motor Insurance Database (MID). A motorcycle requires a different trade plate than a car, and rates are typically lower.
It is worth noting that trade plate licences are issued with fixed expiry dates – either June 30th or December 31st – which means the actual duration of the licence depends on when you apply. These fixed periods are designed to provide flexibility and convenience. Understanding the timing and cost structure allows businesses to plan more effectively, ensuring optimal use of the trade plates.
Motor Trade Plate Rules
Several rules govern the display of trade plates, and failure to follow them can result in fines of up to £5000, a possible jail term, or the invalidation of the trade licence.
Trade plates must be displayed externally on the front and rear for cars and vans, and rear only for motorcycles. They must be clearly visible from 20 metres and not obscure the original number plates (except on motorcycles).
Even with trade plates, vehicles must be insured under a valid motor trade policy, have a valid MOT certificate, unless being driven to a pre-booked MOT test, and be roadworthy and safe to operate.
Motor traders must maintain accurate records of who drove the vehicle, the date and time of use, the purpose of the journey, and the vehicle details themselves. The DVLA or law enforcement may request these records to verify compliance.
Motor Trade plates are a valuable tool for the motor trade, offering flexibility and cost savings—but only when used correctly. Those who fail to comply with trade plate regulations risk having their trade plate privileges revoked, a consequence that can severely disrupt day-to-day operations. Without access to trade plates, businesses are forced to individually register and tax each vehicle, even for short-term use. This will not only increase operational costs but also add significant administrative complexity.
By following DVLA guidelines, maintaining proper records, and ensuring vehicles are safe and insured, you can save time and money while keeping your business compliant and efficient. For detailed information about the Insurance Implications of Trade Plates, to ensure you are correctly covered or would like to discuss a new policy, please contact Jensten Motor Trade on 0203 131 6899, and one of our experienced team members will discuss the options with you.
