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HMRC internal manual

National Minimum Wage Manual

Specific occupations & special groups: taxi drivers

Taxi drivers are entitled to the national minimum wage if they are workers (NMWM05020) and are not genuinely self-employed running a business of their own (NMWM05060). Some taxi drivers can be self employed for tax and national insurance purposes but still be a worker for minimum wage purposes (NMWM04020).

If it not clear whether a person in the role of a taxi driver is a worker or not then it is necessary to establish their status (NMWM04000) for national minimum wage purposes. Some of the arrangements to consider regarding the status of taxi drivers include:

  • Who owns the car, meter and radio equipment? Is the equipment hired from the employer?
  • Does the driver or the “employer” agree the charges to customers? Who dictates the times when the driver works?
  • What are the payment arrangements? Does the driver retain all or some of the fare paid? If the fare is not paid who suffers the loss?
  • Who provides insurance cover to do the work? Who is responsible for any damages to vehicle, property or customers or third parties?
  • Does the driver consider himself to be operating his own business or working in someone else’s business? Can he receive fares from more than one firm? Can he reject fares if desired?
  • Does the driver have to do the work himself or can he arrange for someone else to do the work instead?