Updated: May 8, 2022
New taxi driver tax check rules remain on course to be introduced in Scotland and Northern Ireland from April 2023.
HM Revenue and Customs (HMRC) recently introduced the new tax check that must be completed when people renew their licences to drive taxis, or drive and operate private hire vehicles, in England and Wales.
The new check, which has been required since 4 April 2022, does not include any calculations. It simply confirms whether a driver is registered for tax on their licensed taxi or private hire vehicle income.
This check remains on course to be delivered in both Scotland and Northern Ireland for April 2023.
What is a ‘tax check’?
A tax check confirms that you’re registered for tax, if necessary. It will ask questions about how you pay any tax that may be due on income you earn from your licensed trade.
You must carry out the tax check yourself. You cannot ask a tax agent or adviser to do this on your behalf.
After you complete the tax check you’ll be given a 9-character code. This is your tax check code. You must give it to the licensing authority with your licence application — they will not be able to process your application without it.
Tax check codes expire after 120 days, so if you make a licence application for another licence after that time, you’ll need to carry out a new tax check for it.
If you’re a partner making a licence application on behalf of a partnership you must complete a tax check for yourself. Your licensing authority will tell you if any other partners also need to complete a tax check.
Your licensing authority will need your tax check code before they can consider your licence application.