Tax conditionality

HMRC has published guidance on the new rules for renewing taxi, private hire or scrap metal licences. From April 2022, HMRC is introducing a simple tax check to be carried out when individuals, partnerships (including limited liability partnerships (LLPs)) and companies renew their licences in England and Wales to drive taxis, drive and operate private hire vehicles, or deal in scrap metal. The tax check will confirm whether or not the applicant is appropriately registered for tax.

A tax check will be required when applicants:

• renew a licence;
• apply for the same type of licence previously held (where that licence ceased being valid less than one year ago); or
• apply for the same type of licence already held with another licensing authority.

Tax agents or advisers cannot carry out the check on behalf of a client.

Applicants are advised to ensure they have a government gateway user ID and password ahead of the new regime coming into effect in April 2022, and to check their HMRC records are up to date. HMRC is expected to publish further practical guidance in due course.