Tax requirements for Licences

'Tax Conditionality' requirements introduced by HMRC (His Majesty's Revenue and Customs) apply to these Licences:

• Taxi and Private Hire Car Driver Licences;
• Booking Office Licences;
• Metal Dealer Licences (site); and
• Itinerant Metal Dealer Licences

From Monday 2 October 2023.

This is a national requirement and was not made by West Dunbartonshire Council. These rules already applied in England and Wales and are now being extended to Scotland and Northern Ireland.

You should note that the requirements are different:

• if you are applying for your first Licence
• if you are applying to renew a Licence

If you are applying for your First Licence

The rules mean you must confirm to the Council that you're aware of your tax responsibilities if you’re applying for a licence for the first time (or your last licence expired a year or more ago).

You can get more information on the HMRC website:

https://www.gov.uk/guidance/confirm-your-tax-responsibilities-when-applying-for-a-taxi-private-hire-or-scrap-metal-licence

If you don't not need to complete a Tax Check you should read HMRC guidance about tax registration obligations on:

www.gov.uk/register-for-self-assessment

www.gov.uk/corporation-tax

www.gov.uk/income-tax/how-you-pay-income-tax

If you are applying to Renew a Licence

You must:

• complete a HMRC Tax Check, and
• give the Council the Tax Check Reference Code (it is 9 characters, for example "266 RLR TK6") when completing your application to renew your Licence.

In order to complete your Tax Check on the HMRC you will require:

• a Government Gateway user ID and password;
• to know when you first got your licence;
• the length of your most recent licence; and
• details of how you pay tax on the income you earn from your licensed trade.

The Council will use the Tax Check Reference Code to confirm that the Tax Check has taken place.

It is important to note that the Council:

• cannot make a decision to grant or refuse your Licence application without this code
• needs to see a Tax Check Reference Code issued within the last 120 days. If you already have one but it's more than 120 days old, you'll need a new one.

You can get advice about applying for a Tax Check on the HMRC website:

https://www.gov.uk/guidance/complete-a-tax-check-for-a-taxi-private-hire-or-scrap-metal-licence

The same rules apply if you are:

• applying for the same type of licence as one that ceased to be valid less than a year ago; or
• applying for the same type of licence you already hold with another licensing authority

You can get advice on Tax Checks from the HMRC website:

https://www.gov.uk/guidance/confirm-an-applicants-tax-responsibilities-for-taxi-private-hire-or-scrap-metal-licence-applications

https://www.gov.uk/guidance/complete-a-tax-check-for-a-taxi-private-hire-or-scrap-metal-licence

HMRC powers in relation to obtaining information from the Council (when acting as the licensing authority)

Schedule 23 to Finance Act 2011 (Data Gathering Powers) and Schedule 36 to Finance Act 2008 (Information and Inspection Powers), grant HMRC powers to obtain relevant information from third parties. This includes licensing bodies being required to provide information about licence applicants.

Please note that the Council does not deal with questions of how much tax you should pay or what allowances or reliefs you might be entitled to. If you have any questions about your tax affairs you should contact HMRC. The Council will only be asking for the tax code that you obtain from HMRC.