TAX CHECKS FOR TAXI DRIVER, TAXI BOOKING OFFICE AND SCRAP METAL DEALER'S
Please note the following important change for taxi driver and scrap metal licence holders or applicants.
As of 2 October 2023, any individual, company or partnership must now complete a tax check with HMRC when:
-Renewing a licence;
-Applying for the same type of licence previously held, that stopped being valid less than a year ago; or
-Applying for the same type of licence already held with another licensing authority.
You will not need to complete a tax check and you should follow the confirm your tax responsibilities guidance ( https://www.gov.uk/guidance/confirm-your-tax-responsibilities-when-applying-for-a-taxi-private-hire-or-scrap-metal-licence) if you have:
-never held a licence of the same type before;
-had a licence of the same type that stopped being valid a year or more before making this application.
What a tax check is
This tax check is to confirm that you are registered for tax (where applicable). You must carry out the tax check yourself. You will be asked questions about how you pay any tax that may be due on income you earn from your licensed trade. This tax check, which is called tax conditionality, has been introduced by the Finance Act 2022 into Scotland by the UK Government and the Council requires to comply with HMRC tax conditionality obligations.
Once you have completed the tax check, you will be given a 9-Character code which you will need to give to the licensing team along with your licensing application. The Licensing Team will be unable to process your application without this code and your application will be returned to you until this is complete.
Tax Codes expire after 120 days, so if you make a licence application for another licence after that time, you will need to carry out a tax check for it.
You can complete the tax check at the following link- Complete a tax check for a taxi, private hire or scrap metal licence – GOV.UK (www.gov.uk)
Please note, for the avoidance of doubt, that Inverclyde Council will not receive any of your tax information, only confirmation that you have completed the relevant check.
The Council’s application forms in relation to the above applications will be amended, applicants will be asked to sign a declaration to confirm that they are aware of the HMRC guidance relating to their tax legislation guidance.
Licence extension and expiry while waiting for a licence application decision
Your existing licence may be extended until a decision regarding whether to grant your licence application has been made if you are renewing a licence.
If you do not give the licensing section a valid tax check code your licence will expire on whichever of the following dates is the latest:
-28 days after the licensing authority requests the tax code;
-the date your licence expires
Enquiries about introduction of the new tax checks can be made to: Licensing.section@inverclyde.gov.uk