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WARNING LIGHTS TO DENTS: Top five reasons for TfL private hire vehicles failing their licensing renewal


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Transport for London (TfL) has released new data showing the main reasons why private hire vehicles (PHVs) fail their annual licensing inspections on the first attempt.


Between 24 February and 15 September 2025, the first-time pass rate for PHVs stood at 88.90 per cent. While most vehicles met the required standards, a number failed due to common and avoidable issues.

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The most frequent cause of failure was significant damage to external body panels. Vehicles displaying dents, scrapes or other visible damage were deemed unsuitable for passenger use until repairs were made.


Missing or incomplete insurance documentation was another leading issue. Some vehicle owners failed to provide current hire and reward insurance or could not present a valid certificate, cover note or bond certificate at inspection.

Issues with vehicle registration paperwork also featured prominently. PHVs failed when the DVLA V5 or V5C document was missing or when fleet printouts were older than 14 days.


Illuminated dashboard warning lights were another reason for failure, particularly when relating to safety or mechanical concerns. Lights such as engine or airbag indicators prompted inspectors to require further checks.

The fifth most common cause was poor paintwork or body presentation. Dull or faded finishes that detracted from the overall appearance led to failed inspections under TfL’s vehicle standards.


The figures show the importance of proper vehicle upkeep and documentation checks before attending annual tests to avoid disruption to work and income.


Cost and impact of failing the test


Inspection / re-test

If the vehicle fails, the owner must arrange a re-test after defects are corrected. TfL allows a re-test appointment within 21 days (or a later extension if repairs are needed) without extra charge at the inspection centre. However, if the defect is serious or new issues are present, the vehicle may fail again and require further repair costs.


Repair costs

Failing will often trigger unplanned repair or maintenance expenses. Fixing these may involve bodywork repair, replacement tyres, electrical or mechanical diagnostics and parts, repainting, or it might just be simple administrative work (e.g. obtaining valid insurance or renewing documentation). The scale of cost depends on the severity of the defects.


Loss of licence grant refund

If a vehicle fails an annual licensing inspection, the owner is entitled only to a refund of the “grant of licence fee” portion of the licence application. They will not receive a refund of the application portion.


Loss of income

Since a PHV cannot legally carry passengers without a valid licence, failing the inspection delays the vehicle’s ability to operate. That can translate directly into lost earnings, especially if the failure is prolonged while repairs or re-inspections are sorted.


Operational disruption

Drivers or operators may be forced to find alternative vehicles or reduce working hours. There may be scheduling conflicts, cancellations, or bookings that cannot be fulfilled.


Licence suspension or revoked licence risk

If defects are not rectified or if a vehicle is not presented for re-testing, the PHV licence may be suspended or revoked.

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