New tax checks are being introduced from 4 April 2022 that will specifically impact

  • Taxi drivers;
  • Private hire drivers;
  • Private hire vehicle operators;
  • Scrap metal sites; and
  • Scrap metal collectors.

Under the new legislation all individuals, companies or any type of partnership must complete a ‘tax check’ if they are renewing their licence.

The tax check is not required if the individual has never held a licence of the same type before or had a licence of the same type that ceased to be valid a year or more before making the application. In these instances follow the guidance for confirming tax responsibilities.

Local authorities will record the outcome of these tax checks on their systems; however there is concern amongst these authorities that not all taxi drivers or private hire drivers are aware of the new checks.

Information on the new tax checks

A tax check confirms that the individual is registered for tax and creates a code that is given to the licensing authority with the licensing application. Applications cannot be processed without this code.

Tax check codes expire after 120 days and if an application is made for another licence after that time a new tax check should be completed.

One tax check code can be used 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.

The online service for completing a tax check will go live from 7 March 2022.