Tax checks for the taxi, private hire and scrap metal sectors

There is a quiet revolution about to take place in UK taxes. From April 2022 for the first time applications for certain trading licences will be conditional on an applicant having successfully completed a tax check before a licensing authority can issue a renewed licence.

This new system is called conditionality. Its first tranche will apply to licences in the taxi private hire and scrap metal sectors in England and Wales from 4 April 2022 (but not Scotland or Northern Ireland until April 2023).

The supporting draft regulations Tax conditionality for the hidden economy published on 22 October 2021 introduce a new ‘tax check’ for licence renewals to confirm the applicant is appropriately registered for tax. Licensing bodies will be obliged to verify the applicant has successfully completed a tax check before issuing a licence renewal. They will do this using a new...