HMRC is developing the system for tax checks that will apply to renewals of taxi driver and scrap metal site licences, among others, in England and Wales. The check will be integrated into the licencing application and agents will not be able to complete it on behalf of clients.
From April 2022, the renewal of certain licences in the transport and scrap metal sectors will require the applicant to complete a tax check with HMRC. When renewing their licences, applicants will need to complete a basic online check to confirm they are registered for tax if they need to be.
The requirement is known as “tax conditionality” and was subject to consultation on the policy and legislation.
The licences which will be subject to the new check are:
- taxi driver licences
- private hire vehicle (PHV) driver licences
- PHV operator licences
- mobile collector licences for scrap metal dealers, and
- site licences for scrap metal dealers
The new checks will only be included on licence renewals in England and Wales, however, the rules are expected to be expand to Scotland and Northern Ireland from April 2023.
For further information visit Some transport licence renewals to include a tax check | ICAEW