Tax responsibilities
Guidance on confirming your tax responsibilities when applying for a taxi, private hire or scrap metal licence
From 4 April 2022, the rules are changing if you’re applying for a licence for a:
- taxi driver
- private hire driver
- private hire vehicle operator
- scrap metal site
- scrap metal collector
You must confirm you are aware of your tax responsibilities when you apply for a taxi driver, private hire driver, private hire vehicle operator or scrap metal dealer licence for the first time.
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 ceased to be valid less than a year ago
Find out if you must pay tax on your earnings from your licensed trade if you’re not already 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.
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 tell us about a change to your:
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. You can contact HMRC if you need to update your tax records.