Tax check guidance

From 4 April 2022 the rules are changing regarding applications for:

  • taxi driver licences
  • private hire driver licences
  • private hire vehicle operator licences
  • scrap metal site licences
  • scrap metal collector licences

From this date licensing authorities must carry out checks on applications from individuals, companies and any type of partnership to make sure they are aware of their tax responsibilities or have completed a tax check.

Who is likely to be affected

Individuals, partnerships (including limited liability partnerships (LLPs)) and companies applying for a licence in England and Wales to:

  • drive taxis or private hire vehicles (or both)
  • operate a private hire vehicle business
  • deal in scrap metal

The measure also affects licensing bodies in England and Wales that administer those licence applications.

There will also be a check on tax registration (tax check) for licence renewal applications in England and Wales to:

  • drive taxis and private hire vehicles (for example, minicabs)
  • operate a private hire vehicle business
  • carry on the business of a scrap metal dealer on a site
  • carry on business as a mobile collector of scrap metal

An applicant who wishes to renew a licence will need to carry out a tax check. We will have to obtain confirmation from Her Majesty’s Revenue and Customs (HMRC) that the applicant has completed the check before being able to consider their renewed licence application.

Further guidance

Further guidance will be issued by HMRC in January 2022.

More information can be found using the following links: