You must confirm you are aware of your tax responsibilities when you first apply for a taxi driver, private hire driver, private hire vehicle operator or scrap metal dealer licence.
You may need to complete a tax check if you’re applying for a licence for one of the following:
- taxi driver
- private hire driver
- private hire vehicle operator (England and Wales only)
- booking office (Scotland only)
- mobile (itinerant) scrap metal collector
- scrap metal dealer site
The rules for completing a tax check changed on 4 April 2022 in England and Wales, and will change on 2 October 2023 in Scotland and Northern Ireland.
The new rules mean if you’re an individual, company or any type of partnership you must confirm you are aware of your tax responsibilities if you’re applying for a licence:
- for the first time
- you have already held but that has not been valid for a year or more
You should follow the complete a tax check guidance if you:
- already have a licence of the same type that is still valid
- have a licence of the same type that stopped being valid less than a year ago
Check tax liability for trade earnings if you’re not registered with HMRC
Check if you:
- must send a Self Assessment tax return if you’re self-employed or in a partnership
- need to register for Corporation Tax if you operate a company
If you only pay tax through PAYE you do not need to check your records. Find out how you pay Income Tax.
Your tax information must be up to date
You will not be able to complete the tax check if the information you give about your tax affairs does not match HMRC’s records.
You can check your details are up to date when you get a Government Gateway user ID, or by signing in to HMRC online services.
If your details need updating, you can:
Confirming you understand your tax responsibilities
Your licensing authority’s application will include a section that will link to HMRC’s guidance about your tax responsibilities.
You will need to confirm that you are aware of this guidance.
If you’re applying as a partner in a partnership, you can give confirmation on behalf of all the partners.
If you do not confirm that you are aware of the guidance, you will not be issued with a licence.