You’ll need to complete a tax check with HM Revenue and Customs (HMRC) when you renew your licence to:
- Drive taxis or private hire vehicles
- Operate private hire vehicle businesses
- Deal in scrap metal.
The changes will only apply in England and Wales.
How changes may affect you
What you need to do will depend on whether you’re applying for a licence for the first time or whether you’re making a subsequent application, such as renewing a licence.
Getting a new licence
If you are applying for a licence for the first time, you will not need to complete the tax check. However, we will ask you to read HMRC guidance on what you need to do to be properly registered for tax in the future and you’ll need to confirm you have done this
Renewing a licence
From 4 April 2022, if you apply to renew your licence, you’ll have to do a tax check (Opens in a New Window). You’ll be able to do this online through a digital service.
About the tax check
You will be able to complete this tax check on GOV.UK, through your Government Gateway account. You will only need to answer a few questions to tell HMRC how you pay any tax that may be due on income you earn from your licensed trade. If you do not already have a Government Gateway account, you can sign up on GOV.UK.
The tax check should only take a few minutes. There’ll be guidance on GOV.UK and anyone who needs extra support will be able to complete the tax check by phone through HMRC’s customer helpline.
When you’ve completed the tax check, you’ll get a code. You must give this code to us as a part of your licence renewal process.
We cannot proceed with your licence application or renewal until the tax check is completed and have received the code.
We will only receive confirmation from HMRC that you’ve completed the tax check, we will not have access to information about your tax affairs.
What you need to do
If you’ve not registered to pay tax on earnings from your licensed trade, please go to GOV.UK to check if you need to register as soon as possible.
- If you’re an employee, find information on PAYE (Opens in a New Window).
- If you’re self-employed, find information on registering for Self Assessment (Opens in a New Window)
- If you operate through a company, find information on Corporation Tax (Opens in a New Window)
If you should have been registered to pay tax and have not been, HMRC will work with you promptly and professionally to get you back on the right track. It’s your responsibility to get your tax right, but HMRC are here to help.
You can get help from HMRC if you need extra support, for example if you need information in a different format or need help filling in forms. Visit GOV.UK and search ‘Get help from HMRC if you need extra support’.
For further guidance on the tax check, please visit the Government website (Opens in a New Website)