Taxi News and Information
Tax Conditionality
Information for Licence Holders on Tax Conditionality
From 4th April 2022 the government is putting in place new tax requirements for applications to certain licences. This is supported by a new digital service, being developed by HMRC. It helps people in the taxi and scrap metal industries to complete a new tax check.
Most people are registered to pay tax and this is about ensuring everyone pays the tax they should, creating a level-playing field for the compliant majority. HMRC are working with industry bodies to make this as straightforward as possible. The check should take a few minutes every few years and is simply to confirm that someone is appropriately registered for tax.
You’ll need to complete a tax check when you renew your licence as a:
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Driver of taxis - includes hackney carriage, private hire and dual licences
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Private hire vehicle operator
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Scrap metal dealer mobile collector
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Scrap metal dealer site
About 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. There’ll be guidance on GOV.UK and anyone who needs extra support will be able to complete the tax check by phone through HMRC’s customer helpline.
When you’ve completed the tax check, you’ll get a code. You must give this code to us when applying to renew your licence. We cannot proceed with your licence application or renewal until the tax check is completed and we’ve received the code.
We will only receive confirmation from HMRC that you’ve completed the tax check, we will not have access to information about your tax affairs.
Registering for tax
You may have to pay tax through Pay as You Earn (PAYE), Self Assessment and/or Corporation Tax, depending on your circumstances.
If you should have been registered to pay tax and have not been, HMRC will work with you promptly and professionally to get you back on the right track. It’s your responsibility to get your tax right, but HMRC are there to help.
If you’re an employee: Pay As You Earn (PAYE)
Most employed people pay Income Tax through PAYE. This is the system employers use to take Income Tax and National Insurance contributions before they pay wages.
For more information on PAYE, go to www.gov.uk/income-tax/how-you-pay-income-tax
If you’re self-employed: Self Assessment tax returns
If you’re self-employed you’ll pay Income Tax and National Insurance through Self Assessment. You’ll need to fill in a tax return every year.
You must send a tax return if, in the last tax year (6 April to 5 April), you were:
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self-employed as a ‘sole trader’ and their annual gross trading income was more than £1,000;
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a partner in a business partnership.
For more information on registering for Self Assessment, go to www.gov.uk/register-for-self-assessment
If you operate through a company: Corporation Tax
Companies need to register for corporation tax when they start doing business or restart a dormant business.
For more information on Corporation Tax, go to https://www.gov.uk/corporation-tax
Further information and guidance
Further information and guidance is available from the GOV.UK website here:
Changes for taxi, private hire or scrap metal licence applications from April 2022 - GOV.UK (www.gov.uk)
Clear Air Zones
To improve air quality, some local authorities are introducing Clean Air Zones which may affect some hackney carriages and private hire vehicles. If your vehicle exceeds emission standards, you may have to pay a charge if you drive in a Clean Air Zone. Further information can be found here (https://www.gov.uk/guidance/driving-in-a-clean-air-zone)
Bath (Class C), Birmingham (Class D) and Portsmouth (Class B) currently have clean air zones. Bradford will start charging in 2022 and on 30th May 2022, Greater Manchester will start charging too.
There are 4 types of Clean Air Zones, Class A to D.
| Class | Vehicle Type |
| A | Buses, coaches, taxis, private hire vehicles |
| B | Buses, coaches, taxis, private hire vehicles, heavy goods vehicles |
| C | Buses, coaches, taxis, private hire vehicles, heavy goods vehicles, vans, minibuses |
| D | Buses, coaches, taxis, private hire vehicles, heavy goods vehicles, vans, minibuses, cars, the local authority has the option to include motorcycles |
Minimum emission standards
Each vehicle type has a minimum emission standard. You can find your vehicle's emission standard in your vehicle logbook or from your vehicle manufacturer.
To avoid being charged in a Clean Air Zone, your vehicle must meet the following minimum standard:
| Vehicle Type | Clean Air Zone Minimum Standard |
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Buses, coaches, heavy good vehicles |
Euro VI |
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Vans, minibuses, taxis, private hire vehicles, cars |
Euro 6 (diesel) and Euro 4 (petrol) |
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Motorcycles |
Euro 3 |
Local authorities may set a different standard for taxis and private hire vehicles. You should always check if you will need to pay a charge or contact the local authority for more information.
You can check whether you will need to pay in these zones by using the link: