Guidance

Confirm an applicant's tax responsibilities for taxi, private hire or scrap metal licence applications

Licensing authorities must get an applicant's confirmation that they're aware of their tax responsibilities on first-time licence applications for taxi, private hire and scrap metal licences.

Applies to England and Wales

From 4 April 2022, the rules are changing for applications for:

  • taxi driver licences
  • private hire driver licences
  • private hire vehicle operator licences
  • scrap metal site licences
  • scrap metal collector licences

Licensing authorities must carry out extra checks if an individual, company or any type of partnership applies for a licence:

  • for the first time
  • of the same type they have already held but which has not been valid for a year or more

Read the get tax check confirmation guidance if the applicant:

  • already has a licence of the same type that is still valid
  • has a licence of the same type that ceased to be valid less than a year ago

First-time applicants must give you confirmation that they are aware of the guidance about their tax obligations.

If the applicant is a partner in a partnership, they can give confirmation on behalf of all the other partners.

If the confirmation is not included with their application you must ask them for it.

You can only grant or refuse an application after the applicant has confirmed they are aware of the guidance.

You must keep a record of when you received the applicant’s confirmation. You may want to keep it for the same length of time you keep their licence application.

You must make the applicant aware that HMRC has powers to obtain information from licensing authorities. We suggest using the following wording:

‘Schedule 23 to Finance Act 2011 (Data Gathering Powers) and Schedule 36 to Finance Act 2008 (Information and Inspection Powers), grant HMRC powers to obtain relevant information from third parties. This includes licensing bodies being required to provide information about licence applicants.’

You must also give applicants who do not need to complete a tax check the following GOV.UK website addresses for HMRC guidance about tax registration obligations:

You’ll also need to record that the applicant has confirmed they are aware of the guidance. You can do this by adding a declaration onto the application form. We suggest using the following wording:

‘I confirm that I am aware of the content of HMRC guidance relating to my/our (delete as applicable) tax registration obligations.’

Published 10 January 2022
Last updated 1 July 2022 + show all updates
  1. You must make the applicant aware that HMRC can get information from licensing authorities and, if the applicant does not need to complete a tax check, you must make them aware of GOV.UK guidance to help them understand their tax responsibilities.

  2. Added translation