Consultation outcome

Tackling the hidden economy: expanding tax conditionality to new sectors — Summary of responses

Updated 26 November 2025

1. Introduction

The consultation Tackling the Hidden Economy: Expanding Tax Conditionality to New Sectors was published on 30 October 2024. This document provides a summary of the responses received and the governments next steps.

The majority of UK taxpayers pay what they owe, but a small minority seek to evade or avoid paying their fair share. The hidden economy consists of individuals and businesses with sources of taxable income that are entirely hidden from HMRC. The hidden economy tax gap is estimated to be £2.6 billion for the year 2023 to 2024 and equates to approximately 5% of the overall tax gap. The tax gap is the difference between the amount of tax that should, in theory be paid, and what is actually paid.

Tax conditionality currently applies to certain taxi and scrap metal licences across the UK and introduces a simple check into the renewal process for certain public sector licences to address part of the hidden economy. This helps licence applicants better understand their tax obligations and makes ongoing access to the licences they need to trade conditional on completing that check. It also promotes tax registration at the right time and helps customers better understand their obligations to register for tax and the simple steps they need to take to declare their income to HMRC.

The consultation was open for comment until 31 January 2025 and invited views on:

1. Expanding tax conditionality to new sectors including waste, animal welfare and additional transport licences.
2. Whether tax compliance should form part of any new or changed standards or administration process for business operations.
3. Additional sectors that could align with tax conditionality.

The government is grateful to those who gave their time to meet with HMRC officials during the consultation and submitted responses. In total, there were 26 written responses to the consultation from a range of stakeholders, including professional and representative bodies and licensing administrators. HMRC also held a series of discussions between November 2024 and January 2025 to discuss the content of the consultation with interested stakeholders. This approach ensured HMRC received a good cross-section of views and ideas for the practical application of expanding tax conditionality to new sectors.

Respondents showed their support for the proposal to expand tax conditionality to new sectors in principle. Most respondents observed that the existing tax conditionality safeguards are suitable and sufficient for the expansion.

The licenced sectors in scope of the consultation were:

• Waste
• Animal Welfare, including animal breeding, animal boarding and pet selling licences
• Taxi and private hire vehicle licences (already applies to taxi and private hire driver licences since 2022)
• Pedicab licences (in London only)

There was strong encouragement for introducing tax conditionality to the waste sector in principle, although several common themes emerged around compatibility with licensing regimes. This includes consistency and timing, the renewal processes for certain regimes, and cost considerations. An overarching theme was that the practical application in the waste sector would need to be carefully scoped in partnership with those responsible for waste regimes and licensing frameworks.

Those considering animal welfare licences were broadly in support of the suitability and compatibility of expanding tax conditionality for the activities outlined in the consultation and recommended additional activities to be considered for tax conditionality.

Respondents agreed that expanding tax conditionality to vehicles in the taxi and private hire sector would be proportionate and were broadly in favour of the proposal to bring consistency to the sector. However, some respondents highlighted that those holding multiple licenses would need to complete multiple tax checks.

When asked whether pedicabs in London should have provision for tax conditionality in place if a licensing scheme is introduced, all respondents agreed about the potential inclusion of pedicabs. They also suggested that there are likely to be high levels of hidden economy activity in the pedicab industry.

Licensing administrators who responded to the consultation strongly endorsed the current tax check process and indicated that they would consider an automated processing service for administration.

All respondents from the waste sector were supportive of first-time applicants completing a tax check. There were mixed views on whether first-time applicants should complete a tax check in the animal welfare and transport sectors.

The following chapter summaries the views expressed by respondents to the 19 questions in the discussion document and next steps.

2. Summary of responses

Responses to the 19 questions are grouped into sections corresponding to the original chapters of the consultation document.

Changes to the tax check process for applicants

This section explores whether there are circumstances where it is appropriate to require first time applicants to complete a tax check when applying for specific licences.

Someone applying for a licence for the first time (for example as a waste carrier) may have been active in their trade sector for a considerable period before commencing a new activity which would bring them into the scope of waste regulation.

The government asked stakeholders to consider:

Question 1: Should the government require first time applicants to complete a tax check when applying for specific licences where it is appropriate do to so? If so, which licences, permits, approvals or registrations in the sectors discussed in this consultation should it apply this to?

Of the 26 written responses received, 18 stakeholders commented on this proposal.

Most respondents in the waste sector would support a requirement for all applicants to complete a tax check, including if they are applying for the first time. This includes waste registrations, approvals, permits and exemptions, either now or in the future. Some respondents suggested that if there are no tax checks undertaken for a first-time permit with no renewal mechanism, then there would never be a tax check for those types of permits. They propose that where this is the case, protective measures should be adopted to prevent the continuation of hidden economy risks. For example, the issuing of the first-time permit could be made conditional on successful completion of a tax check within 12 months, and be revoked if the tax check is not completed.

Waste sector respondents also told us that the current safeguards for signposting first-time applicants to HMRC’s guidance could be strengthened by the licence, permit or approval being issued on this conditional basis. They also expressed concerns around wider tax compliance in the waste sector and suggested that additional safeguards be put in place to check applicants for previous history of insolvency and any outstanding tax debt.

There were mixed views on whether first-time applicants should be required to complete a tax check in the animal welfare sector. One respondent expressed concerns that this may dissuade someone from applying for the relevant licence, which could be detrimental to animal welfare. They also acknowledged the importance of all those involved in licensable animal welfare activities operating in full compliance with all laws. No views were provided regarding the transport sector.

Next steps

The government will consider whether changes to the tax check process for applicants are suitable.

Changes to the digital service for licensing bodies

This section relates to whether an automated processing service would be beneficial, if made available (which was of particular government interest).

The government asked stakeholders to consider:

Question 2: Would licensing bodies who process taxi and scrap metal licences currently in scope of tax conditionality adopt this process if it was offered? If so, would it reduce your administrative overhead and by how much?

Of the 26 written responses received, 5 stakeholders provided comments.

Responses indicated that licensing bodies would consider an automated verification process. However, there were mixed views on efficiency savings with one respondent stating that it would not reduce the administrative overhead.

Other comments included reflections on compatibility with established processes.

Waste sector

This section relates to expanding tax conditionality into the waste sector regulatory regimes.

The government asked stakeholders to consider 3 questions:

Question 3: Do you have any comments about, or evidence of, the suitability of expanding the use of tax conditionality to waste regulatory regimes?

Question 4: Are there any features of the waste regulatory regimes or processes used by the providers administering them, which are incompatible with tax conditionality, or the policy model outlined in chapter 2?

Question 5: Where appropriate renewal mechanisms don’t exist, should regulators direct those registering to information about their tax obligations?

Of the 26 written responses received, 12 stakeholders provided comments relating specifically to the waste sector.

Suitability of the policy model for the waste regulatory regimes and processes

There was consensus amongst respondents who agreed in principle with the proposal to expand the use of tax conditionality and recognised introducing conditionality could help strengthen waste regulatory regimes. Some respondents said that conditionality could act as a further deterrent to criminal activity and support several improvements to existing sector regulations that the government has announced over recent years, including digital waste tracking and reform of the carriers, brokers, and dealers regime.

Many respondents suggested that tax conditionality should be applied wholesale across the waste sector to include landfill sites, waste recovery permits, waste recycling facilities and waste transfer stations. Respondents were also clear that additional enforcement activity against those operating outside of the regulatory regimes would benefit the sector, and first-time applicants should be considered for conditionality.

Respondents stated that if conditionality is applied only to licence renewals, it could allow for fraudulent businesses to appear and disappear within the initial 3-year renewal period. They provided the waste exemption regime as an example. Some respondents expressed concern that the current checks undertaken by the licence providers should be strengthened, and licences should be conditional on applicants being subject to more rigorous checks.

Many respondents said that licence holders would need additional support to engage with tax checks and were concerned about the additional burden that would be placed on licence administrators, with the potential for licence applications being delayed.

Waste licences in scope of this measure will be determined following sector reform.

Compatibility of the policy model for the waste regulatory regimes and processes

Some of the responses provided were from environmental regulatory bodies with responsibility for administering waste regulatory regimes.

Several common themes emerged around compatibility including consistency and timing, the renewal processes for certain regimes, and cost considerations. However, overall environmental regulatory bodies are supportive in principle, subject to those considerations.

Respondents highlighted planned sector reform, including regime changes and the different approaches taken across the UK. There were also comments about the timing of further reform and the potential implementation of tax conditionality that would need to be appropriately considered and aligned.

Also, respondents commented that the practicality of implementing a consistent process across the UK given the challenges around different operating regimes, different terminology, and the lack of renewal mechanisms for some regimes would need careful consideration.

The government recognises the importance of engaging fully with stakeholders in the waste sector and the benefits it brings as the government expands tax conditionality.

Renewal process

Some environmental regulatory bodies indicated that certain licences, registrations, permits, or exemptions operate without a renewal function, and that these would not be compatible with the current policy model which is dependent on a renewal process. Respondents recommended that practical considerations should be worked through with HMRC.

Waste sector respondents commented on first-time licence applicants that are not subject to a renewal in the waste sector being brought into scope of conditionality.

Respondents also reiterated the requirement for digital systems funding that would be needed to administer conditionality in the waste sector, owing to waste regulatory regimes being administered and processed by government departments with responsibility for waste as opposed to local authorities.

Overall respondents agreed that regulators should direct those registering to information about their tax obligations, commenting that the relationship would be mutually beneficial and would aid consistency.

One respondent expressed concerns regarding potential delays to applications if regulators are directing applicants to information about their tax obligations. Additionally, they suggest that legislative changes would be needed if applications are dependent on applicants confirming they have considered the guidance.

Since April 2022, over 475,000 tax checks have been completed by taxi, private hire vehicle and scrap metal dealing licence holders across the UK. Customer satisfaction feedback shows licence holders found the tax check was quick and easy to complete, with little or no delays reported in renewing their licence.

The government recognises the need to ensure that new burdens associated with the policy are kept to a minimum. Following the existing approach, HMRC will ensure that applicants are only required to answer a small number of simple, multiple-choice answers as part of the tax check. Anyone who requires further support to complete the check, or any other aspect of their tax affairs, will be able to contact HMRC for help.

The government maintains that burdens for licensing bodies will be minimal, since they will only need to obtain a simple confirmation that the tax check has been completed. A licensing body will then be able to go ahead and consider the licence renewal application in line with existing processes.

Next steps

Tax conditionality in the waste sector will be introduced.

Animal welfare sector

This section relates to whether tax conditionality should be expanded into the animal welfare sector regulatory regimes.

The government asked stakeholders to consider 2 questions:

Question 6: Do you have any comments about, or evidence of, the suitability of expanding the use of tax conditionality to animal welfare licensing? If so, which activities should conditionality apply to?

Question 7: Are there any features of the animal welfare licensing or processes used by licensing providers in administering them, which are incompatible with tax conditionality, or the policy model outlined in chapter 2?

Of the 26 written responses received, 7 stakeholders provided comments.

Suitability

Most respondents said that the animal welfare licences outlined in the consultation were suitable for tax conditionality. Licences specifically included in the consultation are animal breeding, animal boarding and pet selling.

Respondents suggested additional activities that they believe could benefit from tax conditionality. However, most of the additional activities provided are not currently licenced activities; including dog walking, pet sitting, animal rescue, animal grooming and canine fertility clinics. Currently, no regulatory framework exists for these activities, meaning tax conditionality cannot be introduced at this time.

As licensed activities, we considered animal exhibitions and the hiring out of horses (including horse riding). However, there was no substantial risk evidence base established and therefore, conditionality is not proportionate at this time.

Compatibility

There were no compatibility concerns put forward for animal welfare licensing for the policy model outlined in the consultation. Responses from licensing bodies currently processing tax checks for taxi and scrap metal licences indicated that animal welfare could be incorporated into current procedures.

Responses from sector representatives also support the policy model, and respondents emphasised the importance of a robust system of registration and licensing, particularly for dog breeding and selling. HMRC will highlight these points to the relevant bodies that control the licencing framework.

The government remains of the view that tax conditionality offers opportunities for integrating the tax system with wider government approvals and services to improve sector standards.

Next steps

Tax conditionality in the animal welfare sector will be introduced, specifically for animal breeding, animal boarding and pet selling licences.

Transport sector

Tax conditionality tax checks already apply to taxi and private hire driver licences. This section relates to whether tax conditionality should be expanded to taxi and private hire vehicle regulatory regimes.

The government asked stakeholders to consider 3 questions:

Question 8: Do you have any comments about, or evidence of, the suitability, positive or negative of expanding the use of tax conditionality to vehicles in the taxi and private hire sector in the UK?

Question 9: Are there any features of the licensing regimes which apply to vehicle proprietors used in the taxi and private hire sector or processes used by independent licensing authorities/bodies in administering them, which are incompatible with tax conditionality, or the policy model outlined in chapter 2?

Question 10: Do you have any comments about the proportionality of extending tax conditionality to licences for vehicles in the taxi and private hire sector in addition to the existing licences already in scope of tax conditionality?

Of the 26 written responses received, 6 stakeholders provided comments.

Suitability and compatibility

Most respondents were positive about the suitability and compatibility of expanding tax conditionality to vehicle licences, in addition to established conditionality for taxi and private hire driver licences. Respondents stated that this would bring consistency across all licences in the sector.

There were comments on the potential burden on local authorities and suggestions that careful consideration is required to minimise additional burdens when processing licence applications. Respondents highlighted that some individuals and businesses holding multiple licences may need to complete more than one tax check, which would need to be considered. For example, feedback from one local authority stated that vehicle proprietors may have more than one licenced vehicle with different renewal dates and that licensing bodies would need to minimise undertaking a tax check of the same individual on numerous occasions per year.

The tax check is simple and quick to complete online. HMRC’s digital service provides the applicant with a code to confirm completion of the tax check; the code is valid for 120 days and can be used for more than one licence type multiple times.

The government maintains that burdens for licensing bodies will be minimal, since they will only need to obtain a simple confirmation that the tax check has been completed. A licensing body will then be able to go ahead and consider the licence renewal application in line with existing processes.

Proportionality

All respondents agreed that expanding tax conditionality to vehicles in the taxi and private hire sector would be proportionate.

Next steps

Tax conditionality in the transport sector will be expanded to include taxi and private hire vehicle licences. This has applied to taxi and private hire driver licences since 2022.

Pedicabs in London

This section relates to Pedicabs in London.

The government asked stakeholders to consider 2 questions:

Question 11: Should the government seek to apply tax conditionality to pedicabs in London when licensing is introduced to regulate the activity?

Question 12: Do you have any comments or evidence on levels of hidden economy activity within those who drive pedicabs or operate pedicab businesses in London?

Of the 26 written responses received, 3 stakeholders provided comments.

All respondents agree that tax conditionality should be expanded to pedicabs in London if a licensing scheme is introduced by Transport for London (TfL).

Two respondents indicated there are likely to be high levels of hidden economic activity in the pedicab industry and that cash transactions and lack of regulation enable hidden economy activity.

TfL consulted on pedicab licencing in January 2025. A report from this consultation was published and the responses informed a second consultation on detailed pedicab licensing requirements. The second consultation closed in October 2025.

TfL is currently reviewing the responses to the second consultation and drafting the pedicab regulations.

Following the confirmation of the regulations, we will apply tax conditionality to pedicabs in London.

Next steps

Tax conditionality in the transport sector will be expanded to include pedicab licences in London. Pedicabs outside of London are already in scope of the existing tax check rules.

Safeguards and impacts

This section relates to safeguards and impacts. It invites views on whether any further support or safeguards are required for the licences set out in the consultation.

The government asked stakeholders to consider 3 questions:

Question 13: Do you have any comments on the suitability of safeguards outlined in chapter 2 and are there any further safeguards needed in addition to those outlined in chapter 2 for the licences outlined in chapter 3?

Question 14: Do you have any comments about, or evidence of, impacts (positive or negative) of applying tax conditionality to the regulatory regimes set out in this consultation?

Question 15: Are there any licence holders who may need additional support to engage with the tax check and what support do they need?

Of the 26 written responses received, 13 stakeholders provided comments.

Most respondents to this question were in support of expanding tax conditionality to the regulatory regimes set out in the consultation, with comments around the potential positive impact of tax conditionality featuring predominantly. One respondent suggested that tax conditionality requirements act as a deterrent to non-compliant businesses and enables the sharing of real-time information between HMRC and regulators.

Most respondents noted that the safeguards for the existing measure for taxi driver and scrap metal licences are suitable and sufficient.

Some commented on the potential for conditionality to prevent legitimate operators from obtaining permissions quickly and the additional burdens placed on licenced operators and local authorities. There were also comments on the potential negative impact conditionality could have on industries, specifically the animal welfare sector. There were also a number of comments about the potential added burden on local authorities and that there should be more government funding and awareness raised for the important role that local authorities play.

Most respondents agree that the process of apply tax conditionality should be quick, seamless, and cost effective.

Most respondents agree that licence holders need support to engage with the tax checks. They mention support around literacy levels, technical competence, and the need for the government to provide accessible documentation to support with this. Some respondents also suggest that there be a telephone option as licence holders value being able to speak to someone over the phone as they may not be confident IT users.

The government remains of the view that the existing safeguards, which are set out in the consultation, are proportionate. The purpose of the safeguards is to protect the integrity of the licensing process in the event that the systems HMRC has put in place to undertake the tax check, or to get confirmation from HMRC that one has been done, are unavailable. The government believes that the design of existing safeguards, including the provision to disapply the tax check if arrangements made by HMRC are unavailable for 5 days or more, are proportionate. These strike the right balance between the risks posed to the tax system and the potential disruption to the licensing process, if the arrangements were unavailable.

As noted in the consultation, HMRC is committed to helping those who are unable to access digital services. Those who are unable to complete the tax check online are offered support to do so or will be able to complete the tax check by phone and HMRC’s other extra support services. HMRC will ensure that any IT service conforms to government accessibility standards.

Next steps

The government will expand the existing safeguards to support customers to comply with the tax checks.

Views on additional sectors for tax conditionality and tax compliance strengthening new licensing schemes, existing standards and or administrative processes for business operations

This section seeks views on other sectors that could align with tax conditionality, requirements for new licensing schemes to apply conditionality from the outset and strengthening licensing and standards through tax compliance.

The government asked stakeholders to consider 4 questions:

Question 16: What other sectors should the government seek to apply tax conditionality?

Question 17: Should the government seek to apply tax conditionality requirements to new licensing schemes or existing licensing schemes from the outset?

Question 18: Should regulators be required to consider if tax compliance should form part of any new, or changes to existing standards and or administrative processes for business operations?

Question 19: Should HMRC be more easily able to share information (such as to confirm whether a person is appropriately registered for and paying tax) with regulators to help ensure they are an appropriate person to be undertaking the regulated or licenced activity?

Of the 26 written responses received, 15 stakeholders provided comments.

Applying conditionality to other sectors

Respondents have highlighted the following sectors to be considered for tax conditionality:

• food
• health and beauty
• street trading
• car washes
• nail bars
• further activities in the waste sector. These include the Packaging Recovery Note Registration Scheme

Most activities within the above sectors do not currently operate under a licensing regime, and for those that do, there is no licence renewal mechanism. The current conditionality policy model is not suitable for licences that do not operate on a renewal basis.

HMRC will explore the feasibility and circumstances where it would be appropriate to introduce tax checks for first-time licences or non-renewing licences in high-risk sectors.

Applying tax conditionality requirements to new licensing schemes or existing licensing schemes from the outset

Most respondents supported the government seeking to apply tax conditionality requirements to new licensing schemes or existing licensing schemes from the outset, with many indicating that this would be a more efficient process.

Some respondents believe expanding tax conditionality should be applied to new licensing regimes and support tax conditionality being applied at the same time across the UK.

Requirement for regulators to consider if tax compliance should form part of any new, or changes to existing standards or processes

Most respondents suggested that regulators should be required to consider tax compliance forming part of any new, or changes to existing standards and or administrative processes for business operations. Respondents indicate that enhanced co-operation between regulators and HMRC on tax compliance is a requirement not only to obtain a permit but to remain compliant with the permit and this combined relationship would be beneficial to tackle hidden economy risks. One respondent from the waste sector suggested that a combined approach from regulators and HMRC will have a greater impact on driving out tax fraud within these high-risk sectors.

Some commented that regulators considering tax compliance as part of their standards or processes would require significant change to ensure that the legislative powers exist, the systems have capability, and the regulator can recover costs.

HMRC sharing information more easily with regulators

Most respondents were in support of the sharing of information between HMRC and regulators to ensure that an applicant is an appropriate person to be undertaking the regulated or licensed activity. For example, one respondent suggests that the provision of information between HMRC and regulatory bodies in real time could ensure fraud can be tackled promptly in high-risk industries.

3. Government response

The government is grateful for detailed feedback on expanding tax conditionality and opportunities for tax compliance to feature in new licensing schemes and to strengthen existing standards and administrative business processes.

Closing the hidden economy tax gap and collecting the money that powers public services is in everyone’s interest. Expanding tax conditionality to new sectors will tackle non-compliance and help customers to understand and comply with their tax obligations at the earliest opportunity.

Tax conditionality is an effective way to design out non-compliance. By tackling the hidden economy, HMRC supports other government initiatives to limit wider non-compliance. Working with other public bodies through conditionality helps level the playing field and makes it easier for people to comply with their tax obligations, as well as with other regulatory requirements; including health and safety violations, failure to comply with employment rights for workers and immigration offences.

Many businesses require licences or other approvals from parts of local or national government in order to trade. Where licence holders are receiving income that is taxable, they should be reporting that income to HMRC.

The government intends to take forward licensing in the following sectors:

• Waste
• Animal Welfare, including animal breeding, animal boarding and pet selling licences
• Taxi and private hire vehicle licences (already applies to taxi and private hire driver licences since 2022)
• Pedicab licences (in London only)

The government acknowledges respondents’ support for expanding tax conditionality and will work with devolved governments to introduce legislation to expand tax conditionality across the UK into the waste and animal welfare sectors, and additional licences in the transport sector, as set out in the consultation. Recognising the importance of engaging fully with stakeholders, the government intends to provide an opportunity for stakeholders to scrutinise draft legislation for the expansion before it is introduced to Parliament.

Respondents were clear that the sectors proposed are suitable for tax checks to ensure licence applicants are complying with their tax obligations and observed that the existing tax conditionality safeguards are suitable and sufficient for expanding to new sectors.

The government acknowledges sector reforms and for HMRC to work with waste sector stakeholders and representatives to align practical considerations, and the timing of introducing tax conditionality into the waste regulatory regimes. Building on feedback received, the government will further consider the application of tax conditionality for first-time applicants in certain circumstances for the waste sector, and other high-risk sectors.

The government recognises respondents feedback for licence holders that will need additional support to engage with tax checks. The existing safeguards are proportionate and suitable for the additional licences.

The government thanks respondents for their suggestions for additional sectors to consider and will explore how new licensing regimes could consider tax conditionality and tax compliance from the outset of their design. The government will consider how to bring suitable future licensing regimes into scope of conditionality as standard.

The government remains of the view that tax conditionality may provide opportunities to integrate the tax system with wider government approvals and services, to support customers in paying the right amount of tax, and to ensure fair conditions for businesses. The government will continue to explore the scope for extending the use of tax conditionality as part of our tax compliance efforts to strengthen existing business operational standards, regulations and administrative processes.

Finally, the government will consider how best to share information between HMRC and regulators based on these checks, for example to reduce fraud in high-risk industries.

Annexe A: List of stakeholders consulted

Department for Environment, Food and Rural Affairs (DEFRA)

Environment Agency (EA)

Department of Agriculture, Environment and Rural Affairs Northern Ireland (DAERA)

Department for Infrastructure Northern Ireland

Scottish Government

Scottish Environmental Protection Agency (SEPA)

Welsh Government

Natural Resources Wales

Department for Transport (DfT)

British Metals Recycling Association (BMRA)

Chartered Institute of Waste Management (CIWM)

Wood Recyclers

Waste Management Brokers Association (WMBA)

Vehicle Recyclers Association (VRA)

Institute of Environmental Management and Assessment (IEMA)

Recycle Now

CIWM (Waste Management Industry Training & Advisory Board)

Environmental Services Association

Biffa

The Recycling Association

Evelyn Partners

Augean

Bugbugs

London Pedicabs Welfare Association

Institute of Licensing

National Association of Licensing and Enforcement

Licensing Private Hire Car Association

National Private Hire and Taxi Association

Glasgow Taxis

National Taxi Association

North West Taxi Proprietors

Transport for London (TFL)

British Vehicle Rental and Leasing Association (BVRLA)

Plymouth County Council

Animal Behaviour & Training Council

The Royal Society for the Prevention of Cruelty to Animals (RSPCA)

People’s Dispensary for Sick Animals (PDSA)

Kennel Club

Dogs Trust

British Equestrian Association

British Horse Society

The Guide Dogs for the Blind Association

Battersea Dogs & Cats Home

All Creatures Great and Small Animal Sanctuary

The Association of Accounting Technicians (AAT)

The Association of Chartered Certified Accountants (ACCA)

The Association of British Insurers (ABI)

Chartered Institute of Payroll Professionals (CIPP)

Low Incomes Tax Reform Group (LITRG)

Chartered Institute of Taxation (CIOT)

Institute of Chartered Accountants in England and Wales

Institute of Chartered Accountants of Scotland

London School of Economics and Political Science (LSE)

London Government Association

Welsh Local Government Association

Northern Ireland Local Government Association

Convention of Scottish Authorities (COSLA)

Scotland Local Authority Lawyers & Administrators (SOLAR)

Annexe B: List of questions

Question 1: Should the government require first time applicants to complete a tax check when applying for specific licences where it is appropriate to do so? If so, which licences, permits, approvals or registrations in the sectors discussed in this consultation, should this apply to?

Question 2: Would licensing bodies who process taxi and scrap metal licences currently in scope of tax conditionality adopt this process if it was offered? If so, would it reduce your administrative overhead, and by how much?

Question 3: Do you have any comments about, or evidence of, the suitability of expanding the use of tax conditionality to waste regulatory regimes?

Question 4: Are there any features of the waste regulatory regimes or processes used by the bodies administering them, which are incompatible with tax conditionality, or the policy model outlined in chapter 2?

Question 5: Where appropriate renewal mechanisms don’t exist, should regulators direct those registering to information about their tax obligations?

Question 6: Do you have any comments about, or evidence of, the suitability of expanding the use of tax conditionality to animal welfare licensing? If so, which activities should conditionality apply to?

Question 7: Are there any features of the animal welfare licensing or processes used by licensing providers in administering them, which are incompatible with tax conditionality, or the policy model outlined in chapter 2?

Question 8: Do you have any comments about, or evidence of, the suitability, positive or negative of expanding the use of tax conditionality to vehicles in the taxi and private hire sector in the UK?

Question 9: Are there any features of the licensing regimes which apply to vehicle proprietors used in the taxi sector or processes used by independent licensing authorities/bodies in administering them, which are incompatible with tax conditionality, or the policy model outlined in chapter 2?

Question 10: Do you have any comments about the proportionality of extending tax conditionality to licences for vehicles in the taxi and private hire sector in addition to the existing licences already in scope of tax conditionality?

Question 11: Should the government seek to apply tax conditionality to pedicabs in London if a licensing scheme is introduced to regulate the activity?

Question 12: Do you have any comments or evidence on levels of hidden economy activity within those who drive pedicabs or operate pedicab businesses in London?

Question 13: Do you have any comments on the suitability of safeguards outlined in chapter 2 and are there any further safeguards needed in addition to those outlined in chapter 2 for the licences outlined in chapter 3?

Question 14: Do you have any comments about, or evidence of, any impacts (positive or negative) of applying tax conditionality to the regulatory regimes set out in this consultation?

Question 15: Are there any licence holders who may need additional support to engage with the tax check and what support do they need?

Question 16: What other sectors should the government seek to apply tax conditionality?

Question 17: Should the government seek to apply tax conditionality requirements to new licensing schemes or existing licensing schemes from the outset?

Question 18: Should regulators be required to consider if tax compliance should form part of any new, or changes to existing standards and or administrative processes for business operations?

Question 19: Should HMRC be more easily able to share information (such as to confirm whether a person is appropriately registered for and paying tax) with regulators to help ensure they are an appropriate person to be undertaking the regulated or licenced activity?