Taxi and private hire drivers are linked to HMRC in ways most self employed people are not. You must complete an HMRC tax check before renewing your licence, ride hailing apps report what they pay you to HMRC every year, and black cab drivers cannot use the simplified mileage rates. Tax investigation insurance pays your accountant’s fees if HMRC opens an enquiry into your return.
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.
What is the tax check for taxi licences?
Since 4 April 2022 in England and Wales, and 2 October 2023 in Scotland and Northern Ireland, you must complete a tax check with HMRC when you renew a taxi or private hire driver licence, reapply within a year, or apply to another licensing authority for the same type of licence. The check confirms you are registered for tax where you need to be. The tax check code lasts 120 days, and you must do the check yourself, not through an agent. Read our guide to HMRC tax conditionality checks.
Do ride hailing apps tell HMRC what I earn?
Yes. Since 1 January 2024, platforms that arrange personal services, including taxi driving, must report each driver’s identity and what they were paid each quarter, and the first reports reached HMRC by 31 January 2025. There is no minimum for services. See digital platform reporting.
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.
See my price in 2 questions or call 01795 841 310.
★★★★★ Rated 4.9 out of 5 on Trustpilot from over 160 reviews
How do drivers claim vehicle costs?
Many self employed drivers can use simplified expenses instead of actual costs. For 2026 to 2027 the flat rates for cars and goods vehicles are 55p a mile for the first 10,000 business miles and 25p after that. GOV.UK says vehicles designed for commercial use, such as black cabs and hackney carriages, cannot use simplified expenses, so licensed hackney drivers must claim actual costs.
Whichever method you use, HMRC expects records: mileage logs, fuel and repair receipts, and a fair split for any personal use.
What might HMRC check?
- whether income from every app, account work and cash fares is in your return;
- vehicle cost claims and the private use adjustment;
- whether you registered for Self Assessment on time;
- VAT, if your turnover is over the registration threshold.
HMRC normally has 12 months from when you file a return on time to open an enquiry, and can go back further in some cases (see how far back can HMRC go).
What does tax investigation insurance pay for?
Solar Protect cover responds to full and aspect enquiries into Income Tax returns, and VAT compliance checks if you are registered. See also cover for gig economy workers.
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.
Related Accountapedia entries
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; GOV.UK, Simplified expenses: vehicles; Platform Operators Regulations 2023. Cover is subject to the policy terms, conditions and exclusions. This guide is general information, not personalised tax advice.