Private hire vs hackney carriage: the differences for drivers
By the ELS editorial team. Checked against official sources on . How we check our guides
A hackney carriage (taxi) can be hailed in the street or hired at a rank. A private hire vehicle cannot: every journey must be booked in advance through a licensed private hire operator. That one difference shapes the rest, from local knowledge tests and fares to the licences you need. Both kinds of driver licence are issued by the council, and both normally last three years.
Key takeaways
- Only hackney carriages may ply for hire, meaning pick up passengers who hail them or approach them at a rank.
- Private hire journeys must be booked through a licensed operator. The driver, vehicle and operator all need a licence.
- Councils can set maximum taxi fares, but have no power to set private hire fares.
- Government guidance says taxi drivers should pass a local knowledge test, but private hire drivers should not need one.
The key difference: plying for hire
Section 45 of the Town Police Clauses Act 1847 makes it an offence to ply for hire with a vehicle that is not a licensed hackney carriage. Department for Transport guidance explains that taxis can be hired immediately, directly with the driver, at ranks or in the street. Private hire vehicles are not legally available for immediate hire: the passenger must go through an operator.
For a private hire driver, taking a passenger who has not booked through the operator is plying for hire. It can also leave the journey uninsured. Our guide to plying for hire explains what counts and the penalties.
Sources: Town Police Clauses Act 1847, section 45 (Penalty for plying for hire without a licence) (opens in a new tab) (legislation.gov.uk, Section 45)[1]; Taxi and private hire vehicle licensing: best practice guidance for licensing authorities in England (opens in a new tab) (Department for Transport, 6.11 Topographical knowledge)[2]
Licences: driver, vehicle and operator
Section 46 of the Local Government (Miscellaneous Provisions) Act 1976 requires three licences where the Act applies. The vehicle needs a private hire vehicle licence, the driver needs a private hire driver licence, and the operator needs a private hire operator licence. A licensed operator must not dispatch a vehicle that is not licensed, or a driver who is not licensed. Knowingly breaking these rules is an offence.
Sefton's handbook adds a point many new drivers miss: the driver, vehicle and operator licences must all be issued by the same council.
Sources: Local Government (Miscellaneous Provisions) Act 1976, section 46 (Vehicle, drivers' and operators' licences) (opens in a new tab) (legislation.gov.uk, Section 46(1) and (2))[3]; Hackney Carriage, Private Hire and Omnibus Licensing Scheme Handbook (opens in a new tab) (Sefton Council, Annex 9, Frequently Asked Questions)[4]
Side-by-side comparison
The table summarises the main differences, based on the law and Department for Transport guidance for England.
Sources: Town Police Clauses Act 1847, section 45 (Penalty for plying for hire without a licence) (opens in a new tab) (legislation.gov.uk, Section 45)[1]; Taxi and private hire vehicle licensing: best practice guidance for licensing authorities in England (opens in a new tab) (Department for Transport, 6.11 Topographical knowledge; 10.1 Legal powers)[2]; Local Government (Miscellaneous Provisions) Act 1976, section 53 (Drivers' licences for hackney carriages and private hire vehicles) (opens in a new tab) (legislation.gov.uk, Section 53(1))[5]
| Point | Hackney carriage (taxi) | Private hire vehicle |
|---|---|---|
| Street hails and ranks | Allowed in the area where it is licensed | Not allowed. Every journey must be pre-booked |
| How journeys are booked | Directly with the driver, at a rank, in the street, or pre-booked | Only through a licensed private hire operator |
| Fares | The council can set maximum fares, and most do | The council has no power to set fares |
| Local knowledge test | Guidance says councils should require one before a first licence | Guidance says councils should not require one |
| Driver licence length | Normally 3 years | Normally 3 years |
Local knowledge tests
Government guidance says new taxi drivers should pass a local knowledge (topographical) test. This is because a taxi passenger can hail a driver who has had no chance to plan the route. Private hire journeys are different. The operator collects the pick-up and drop-off details, so the driver can plan the route or use sat nav. The guidance therefore says councils should not require a local knowledge or navigation test.
Councils do not all follow this. Leeds, for example, includes a local knowledge test specific to Leeds for its drivers. Always check your own council's requirements.
Sources: Taxi and private hire vehicle licensing: best practice guidance for licensing authorities in England (opens in a new tab) (Department for Transport, 6.11 Topographical knowledge)[2]; Applying for a hackney carriage or private hire driver's licence (includes the driver training policy summary) (opens in a new tab) (Leeds City Council, Driver training policy, section 1)[6]
Fares
Councils have the power to set maximum taxi fares for journeys in their area, and most do. The published rates are a maximum. There is no power to set fares for private hire vehicles.
Source: Taxi and private hire vehicle licensing: best practice guidance for licensing authorities in England (opens in a new tab) (Department for Transport, 10.1 Legal powers; 10.3 Price competition in taxi fares)[2]
Common questions
Can a hackney carriage driver do pre-booked work?
Yes. Government guidance notes that taxi licence holders can carry pre-booked fares anywhere in England and Wales. Some councils ask new taxi drivers to declare that they intend to work mainly in that council's area.[2]
Is the knowledge test different for taxi and private hire drivers?
Often, yes. In Birmingham, hackney carriage applicants answer six detailed questions on the law and licence conditions, must answer at least 90 of 100 geographical questions correctly, and also face route questions. The private hire test is 18 multiple-choice questions with no map element. See our Birmingham private hire test guide.[7]
Practise for your council's test
Free practice tests written from each council's own rules. No sign-up needed.
Related guides
- Plying for hire explained for private hire drivers
What plying for hire means, why private hire drivers can only carry pre-booked passengers, and the insurance and licence risks, with official sources.
- How to get a private hire driver licence in England: the steps and checks
The legal requirements, background checks, medical, training and council test you need for a private hire driver licence in England, with official sources.
- Private hire driver tests compared: formats, pass marks and how to prepare
Compare private hire driver tests in Wolverhampton, Birmingham, Sefton, Leeds and Bradford: question counts, pass marks, fees and a practical study plan.
- DBS checks for taxi and private hire drivers: what you need and why
Which DBS check a taxi or private hire licence needs, what an enhanced check with barred lists shows, and how the DBS Update Service and 6-monthly checks work.
Official sources
Checked on . Rules can change, so confirm with the council before you book.
- [1]Town Police Clauses Act 1847, section 45 (Penalty for plying for hire without a licence). legislation.gov.uk. Used for: Section 45.
- [2]Taxi and private hire vehicle licensing: best practice guidance for licensing authorities in England. Department for Transport. Last updated 17 November 2023. Used for: 6.11 Topographical knowledge; 6.11 Topographical knowledge; 10.1 Legal powers; 10.1 Legal powers; 10.3 Price competition in taxi fares; 6.12 Intended use policies in respect of taxi drivers.
- [3]Local Government (Miscellaneous Provisions) Act 1976, section 46 (Vehicle, drivers' and operators' licences). legislation.gov.uk. Used for: Section 46(1) and (2).
- [4]Hackney Carriage, Private Hire and Omnibus Licensing Scheme Handbook. Sefton Council. Used for: Annex 9, Frequently Asked Questions.
- [5]Local Government (Miscellaneous Provisions) Act 1976, section 53 (Drivers' licences for hackney carriages and private hire vehicles). legislation.gov.uk. Used for: Section 53(1).
- [6]Applying for a hackney carriage or private hire driver's licence (includes the driver training policy summary). Leeds City Council. Used for: Driver training policy, section 1.
- [7]Guide to driver licensing (DG1.1). Birmingham City Council. Correct at the time of amendment: April 2022. Used for: Hackney Carriage test (page 6); Private Hire test (page 7).