NSG Section 19 and 22 Permit Operators

To qualify services must be eligible services operated by non-profit making bodies on the basis of a Permit issued under Section 19 of the Transport Act 1985 as set out in Annex B.

For those operators claiming NSG under Section 22 of the Transport Act 1985, the above criteria may not apply, however, organisations must run on a not for profit basis.

For operators claiming NSG under either Section 19 or 22 of the Transport Act 1985, Group Hire Service kilometres are ineligible and cannot be claimed for.

An organisation can hold more than one permit and may also hold both section 19 and section 22 permits, but a permit can only be used on one vehicle at a time and a vehicle must only be used under one type of permit at a time. The correct disc must be displayed in the vehicle to show how it is being used at the time of service.

Section 19 and 22 permit holders cannot also hold a PSV licence at the same time.

Payment Frequency and Rates

Payment will be issued twice-yearly, aligning with the 13 four-week payment periods. You are required to submit one claim for sevem four-week periods (between April and October) and one for 6 four week periods (between October and March). Payment will be based on actual kms submitted on an excel claim form which will be sent to operators for completion prior to the end of the twice yearly payment periods

The NSG payment rate is 14.4p/km.

Transport Scotland reserves the right to review the NSG payment rates at any time during the grant period. Minimum notice periods for any rate changes are detailed in the terms and conditions for the grant.

Eligible Services

All vehicles used must have a functioning mileage/kilometre measuring device (most vehicles will normally have an odometer fitted within the speedometer of the vehicle).

This will enable the claimant to record the opening and closing mileage/kilometre reading on each eligible journey or route made each day. Resulting from this, accurate km figures for each eligible journey or route can be calculated.

A record must exist in order to prove that the service operated, which is usually achieved by using driver or vehicle daily log sheets. All records including any originals signed by the driver must be retained and available for at least 12 months after the claim form was submitted to Transport Scotland.

All such records must be made available to the Scottish Ministers’ authorised officers on request. Failure to maintain proper records or produce them when requested to do so may result in claimants being excluded from the grant.

At the end of the claim period the actual kms for each eligible journey or route must be accumulated and transferred into the excel form that will be issued to you separately.

Section 19 permit holders may claim kms continually throughout the day, from the first pickup point to the last drop-off point of the day. All kms are eligible for NSG including journeys travelled where no passengers are on board.

Care must also be taken not to double claim mileage when a vehicle is lent or hired out to another organisation. The principle that will apply is that when the vehicle is hired out to another Community Transport group, it is for the group using the vehicle at the time to claim on the basis of their own Section 19 Permit.

Where the community transport group provides transport for the clients of a number of affiliated organisations under its own ‘umbrella’ Section 19 Permit, then the claim should come from the community transport group.

It should be noted that, in such cases, some journeys may not be eligible, such as Group Hire Services, and these should be excluded from your claim for NSG.

Audit Requirements

Where the total kilometres for each claim is less than 20,000 kilometres, these claims can be “self-certified” by a responsible officer within the organisation making the claim.

Where the total kilometres for each claim is greater than 20,000 kilometres, these claims must be certified by an accountant/auditor who is not an employee or official of the organisation making the claim. In exceptional circumstances claims may be certified by someone having sufficient financial standing and expertise, for example a current or retired bank manager.

Pre-registration Eligibility Guidance

Prior to claiming NSG under Section 19 or 22 of the Transport Act 1985 for the first time, all operators must complete and return a Pre-registration Eligibility Form to allow us to assess your services. You will only need to complete this once initially, however operators are required to notify us of any significant changes throughout participation in this grant that may impact their claim as soon as possible.

Once your eligibility is confirmed, you will receive a confirmation email. We will then email you at the appropriate time with a claim form where you will complete the actual allowable kms you wish to claim for, and this will be assessed. 

For any new organisation wishing to claim NSG using Section 19 or Section 22 permits, the completed Pre-registration Eligibility Form should be returned to us at schemesandgrants@transport.gov.scot