Tax conditionality checks for taxi and private hire licence and scrap metal dealers
The government is putting in place new tax requirements for applications to certain licences. This is supported by a new digital service, being developed by HMRC. It helps people in the taxi, private hire and scrap metal industries to complete a new tax check.
Most people are registered to pay tax and this is about ensuring everyone pays the tax they should, creating a level playing field for the compliant majority. HMRC are working with industry bodies to make this as straightforward as possible. The check should take a few minutes every few years and is simply to confirm that someone is appropriately registered for tax.
You’ll need to complete a tax check when you renew your licence as a:
- driver of a taxi (hackney carriage)
- driver of a private hire vehicle (and dual licences)
- private hire vehicle operator
- scrap metal dealer mobile collector
- scrap metal dealer site
About the tax check
You will be able to complete this tax check on GOV.UK, through your Government Gateway account. You will only need to answer a few questions to tell HMRC how you pay any tax that may be due on income you earn from your licensed trade. If you do not already have a Government Gateway account, you can sign up on GOV.UK.
The tax check should only take a few minutes. There’ll be guidance on GOV.UK and anyone who needs extra support will be able to complete the tax check by phone through HMRC’s customer helpline.
When you’ve completed the tax check, you’ll get a code. You must write the code in the relevant section on the application form. We cannot proceed with your licence application or renewal until the tax check is completed and they’ve received the code.
We will only receive confirmation from HMRC that you’ve completed the tax check, we will not have access to information about your tax affairs.
How the changes may affect you
What you need to do will depend on whether you’re applying for a licence for the first time or whether you’re making a subsequent application, such as renewing a licence.
Getting a new licence
If you are applying for a licence for the first time, you will not need to complete the tax check. However, licensing bodies will ask you to read HMRC guidance on what you need to do to be properly registered for tax in the future and you’ll need to confirm you have done this.
Renewing a licence
From 4 April 2022, if you renew or apply for a subsequent licence under a different licensing body, you’ll have to do a tax check. You’ll be able to do this online through a digital service.
What you need to do
If you’ve not registered to pay tax on earnings from your licensed trade, please go to GOV.UK to check if you need to register as soon as possible:
if you’re an employee, find information on Pay As You Earn (PAYE): www.gov.uk/income-tax/how-you-pay-income-tax
if you’re self-employed, find information on registering for Self Assessment: www.gov.uk/register-for-self-assessment
if you operate through a company, find information on Corporation Tax: www.gov.uk/corporation-tax
If you should have been registered to pay tax and have not been, HMRC will work with you promptly and professionally to get you back on the right track. It’s your responsibility to get your tax right, but HMRC is here to help.
You can get help from HMRC if you need extra support, for example if you need information in a different format or need help filling in forms. Visit GOV.UK and search ‘Get help from HMRC if you need extra support’.
Further guidance on the tax check is available on GOV.UK: www.gov.uk/guidance/changes-for-taxi-private-hire-or-scrap-metal-licence-applications-from-april-2022
Where to obtain a tax check code
Please visit the following website to obtain your tax check code.
Complete a tax check for a taxi, private hire or scrap metal licence - GOV.UK (www.gov.uk)
The tax check code is valid for 120 days and will contain 9 characters. Please write the code in the section for this on the application form.
Guidance for new applicants
New applicants will need to confirm that they have read the guidance available.
Links to guidance
Confirm your tax responsibilities when applying for a taxi, private hire or scrap metal licence - GOV.UK (www.gov.uk)