HMRC tax check for a taxi or private hire licence: when you need one and how it works

HMRC says you must complete a tax check for a taxi driver or private hire driver licence if you are:

• renewing a licence
• applying for the same type of licence you held before, if it stopped being valid less than a year ago
• applying for the same type of licence you already hold with another licensing authority, for example a second council

Source: Complete a tax check for a taxi, private hire or scrap metal licence (opens in a new tab) (HM Revenue & Customs (GOV.UK), Introduction: when you must complete a tax check)[1]

If you have never held this type of licence, or your last one stopped being valid a year or more ago, you do not do a tax check. Instead, the council's application form links to HMRC's guidance on tax responsibilities, and you confirm that you are aware of it. If you do not confirm, you will not be issued with a licence.

HMRC's guidance asks you to check whether you must send a Self Assessment tax return if you are self-employed. If you only pay tax through PAYE, you do not need to check your records. Birmingham's driver guide describes both routes, and Sefton lists the cases that need a tax check code.

Sources: Confirm your tax responsibilities when applying for a taxi, private hire or scrap metal licence (opens in a new tab) (HM Revenue & Customs (GOV.UK), Confirming you understand your tax responsibilities)[2]; Guide to driver licensing (DG1.1) (opens in a new tab) (Birmingham City Council, Tax Compliance (page 2))[3]; New Drivers (Taxi Licensing) (opens in a new tab) (Sefton Council, 6. Conditionality Check)[4]

• You do it online yourself, signed in to your HMRC account. A tax agent or adviser cannot do it for you.
• It asks when you first got your licence, how long your most recent licence was for, and how you pay tax on income from your licensed work.
• At the end you get a 9-character tax check code. Give it to the council with your application; it cannot process the application without it.
• The code expires after 120 days.
• One code can cover several applications for the same type of licence, for example private hire driver licences with two councils. Different licence types, such as a driver licence and an operator licence, each need their own check.

Source: Complete a tax check for a taxi, private hire or scrap metal licence (opens in a new tab) (HM Revenue & Customs (GOV.UK), What a tax check is; Applying for more than one licence; What you'll need)[1]

For a renewal, HMRC says that if you do not give the council a valid tax check code, your licence will expire on the later of two dates: 28 days after the council asked for the code, or the date your licence expires.

If the online service is unavailable, tell the council straight away. It will ask you to keep trying for 5 days in a row. If you still cannot complete the check in that time, you do not need to, but you must tell the council, and it will check that the service was unavailable before deciding your application.

Source: Complete a tax check for a taxi, private hire or scrap metal licence (opens in a new tab) (HM Revenue & Customs (GOV.UK), Licence extension and expiry while waiting for a licence application decision; If the service is unavailable)[1]

Wolverhampton lists the HMRC tax check code as mandatory for renewals, alongside your medical with the D4 form and right to work evidence, and asks you to submit it through its online form. See Wolverhampton refresher training and renewal for its other renewal steps.

Sefton calls it the conditionality check and lists it as step 6 of its new driver process: see how to apply for a Sefton licence.

Sources: Taxi licence FAQs (opens in a new tab) (City of Wolverhampton Council, Drivers: I need to submit a 'check code'; My details are not showing on the public register)[5]; New Drivers (Taxi Licensing) (opens in a new tab) (Sefton Council, 6. Conditionality Check)[4]