Tax conditionality for taxi and private hire drivers

HMRC is introducing a simple tax check from 4 April 2022 that will take place when people renew their licences to drive taxis, drive and operate private hire vehicles, or deal in scrap metal. It will be supported by a new digital service that HMRC is developing.

This service has been created so that everyone pays the tax they should, creating a level playing field for the majority of people that comply. HMRC is working with industry bodies to make this as straightforward as possible. The check should take a few minutes every few years and confirm that someone is correctly registered for tax.

You will need to complete a tax check when you apply or renew your licence as a:

  • driver of a taxi (hackney carriage)
  • driver of a private hire vehicle (and dual licences)
  • private hire vehicle operator

Please read this tax check factsheet to understand what is required, as this will apply to all renewals and new applicants. 

FAQs

What is a tax check?

A tax check confirms that you’re registered for tax, if necessary.

After you complete the tax check you’ll be given a code. You must give it to the licensing authority with your licence application — they will not be able to process your application without it.

Tax check codes expire after 120 days, so if you make a licence application for another licence after that time you’ll need to carry out a new tax check for it.

If you’re a partner making a licence application on behalf of a partnership you must complete a tax check for yourself. Your licensing authority will tell you if any other partners also need to complete a tax check.

Do I need to complete a tax check?

If you’re an individual, company or any type of partnership you must complete a tax check if you’re:

  • renewing a licence
  • applying for the same type of licence you previously held, that ceased to be valid less than a year ago
  • applying for the same type of licence you already hold with another licensing authority

I am a new applicant, do I need to complete a tax check?

You will not need to complete a tax check and you should follow the confirm your tax responsibilities guidance if you have:

  • never held a licence of the same type before
  • had a licence of the same type that ceased to be valid a year or more before making this application

Where do I complete a tax check to get my code?

You can complete the tax check on the GOV.UK website. Click on the "Start Now" button under the "Complete a tax check" heading.

I cannot cannot carry out an online tax check, who do I contact?

If you’re unable to carry out a check online, you should contact:

If the online checking system is unavailable, you should tell the us. HMRC advise that licensees continue to try to access the service for five days in a row.  The five days start the first time you try accessing the service after the licensing authority asked you to.

If you are still unable to access the service and complete a tax check in those five days, you:

  • do not need to carry out a tax check
  • should tell the licensing authority you have been unable to complete one

I need to tell HMRC when I first got my licence, where can I find this information?

Please email licensing@cheltenham.gov.uk or call 01242 264135.

Can I renew my licence without a tax check?

No.  There is a statutory requirement on the authority to ensure you are properly registered for tax.  This is done via the tax check and the authority is under a duty to verify the tax code before we can process your application.

I am applying for more than one licence, do I need to do a tax check for each application?

No. You can use one tax check code for more than one licence application, as long as all the applications are for the same type of licence (for example, they are all for taxi driver licences but with different licensing authorities).  If you’re applying for different types of licence (for example, a private hire driver licence and a private hire vehicle operator licence) you must complete a tax check for each one.

Have the privacy statement been updated to reflect the changes?

Yes.  You can read the updated data processing statement on our website.

Where can I find more information?

The HMRC has published further informaiton on gov.uk.