Tax conditionality means some licences can only be renewed if the applicant completes a short tax check with HMRC. It has applied since 4 April 2022 in England and Wales and 2 October 2023 in Scotland and Northern Ireland, and covers taxi and private hire drivers, private hire operators, booking offices and scrap metal collectors and dealers. The check confirms you are registered for tax where you need to be.
Tax investigation insurance from £108.75 a year (£9.06 a month).Pays up to £100,000 of your accountant's fees if HMRC opens an enquiry. No excess. Buy online in a few minutes.
Which licences need a tax check?
GOV.UK lists:
- taxi driver licences;
- private hire driver licences;
- private hire vehicle operator licences (England and Wales);
- booking office licences (Scotland);
- mobile scrap metal collector licences;
- scrap metal dealer site licences.
When do you need to do a tax check?
- when you renew a licence;
- when you apply for a licence of the same type you held, or stopped holding, within the last year;
- when you apply for the same type of licence with a different licensing authority.
First time applicants are asked to confirm they understand their tax responsibilities instead.
Worried about an HMRC check? Tax investigation insurance pays your accountant’s fees if HMRC opens an enquiry or compliance check. Solar Protect cover pays up to £100,000 with no excess. It never pays tax, interest or penalties.
From £108.75 a year (£9.06 a month) for individuals, £117.57 for sole traders and £207.50 for companies and partnerships, including IPT and the £20 admin fee.
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How does the check work?
You complete the check online with HMRC and receive a tax check code, which you give to the licensing authority. GOV.UK says the code lasts 120 days, and an agent cannot do the check for you. The check confirms you are registered for tax, if necessary. It does not assess whether your returns are right.
Why does it link to HMRC enquiries?
The check makes sure licence holders are in the tax system. Once registered, your returns can be checked like anyone else’s, and ride hailing and booking platforms also report earnings to HMRC under the digital platform reporting rules. If you have not registered when you should have, see failure to notify penalties.
Who else should read this?
Drivers can read tax investigation insurance for taxi drivers.
Tax investigation insurance pays your accountant’s fees if HMRC opens a check after your cover starts. Solar Protect cover pays up to £100,000 with no excess. It never pays tax, interest or penalties. Read how our cover works or get a quote today.
Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 7 October 2026. Sources: GOV.UK, Complete a tax check for a taxi, private hire or scrap metal licence. This guide is general information, not personalised tax advice.