CHANGES TO LICENCE APPLICATIONS
From April 2022, HM Revenue and Customs (HMRC) is introducing a new tax check that must be completed when people renew their licences to drive taxis and drive and operate private hire vehicles in England and Wales.
The digital tax check service will not be available until early next year, but HMRC wants people to prepare as early as possible by making sure they are registered to pay the appropriate taxes on their licensed income ahead of the changes.
You’ll need to complete the tax check when you renew your licence as a:
• Driver of a taxi (hackney carriage) • Driver of a private hire vehicle (and dual licences) • Private hire vehicle operator
The renewal of these licences will only be given if the person applying can show they have completed the simple tax check with HMRC.
The check will not include any calculations, it is simply to confirm that someone is appropriately registered for tax on their licensed income.
HMRC has designed the tax check to be quick and straight- forward to complete and it will only be required every few years. It will form a small part of a much wider range of checks that licensees are already required to carry out.
What you need to do now to prepare for the check:
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 at:
www.gov.uk/income-tax/how-you-pay-income-tax
• If you’re self-employed, find information on registering for Self Assessment at:
www.gov.uk/register-for-self-assessment
• If you operate through a company, find information on Corporation Tax at:
www.gov.uk/corporation-tax
If you should have been registered to pay tax and have not been, HMRC will work with you to get you back on the right track. It’s your responsibility to get your tax right, but HMRC is here to help.
This is about creating a level playing field for the compliant majority in these sectors, so the majority who do play by the rules won’t be disadvantaged by the minority who do not.
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These new rules will differ depending on whether the licence applicant is new or already licensed.
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, licensing bodies 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 renew or apply for a subsequent licence under a different licensing body, you’ll have to do a tax check. You’ll be able to do this online through the digital service.
How to complete 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.
When you’ve completed the tax check, you’ll get a code. You must give this code to your licensing body. The licensing body cannot proceed with your licence application until the tax check is completed and they’ve received the code.
Your licensing body will only receive confirmation from HMRC that you’ve completed the tax check, they will not have access to your tax affairs.
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’.
DECEMBER 2021
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