Licensing tax check code

Tax check code

New tax check scheme for private hire drivers, operators and scrap metal dealers 

Published: 30 March 2022 

The government has introduced tax requirements for applications for certain licences. This is supported by a new digital service, being developed by HMRC. It helps people in the taxi, private hire and scrap metal industries to complete a tax check.
HMRC has powers to obtain information from licensing authorities. 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.

Most people are registered to pay tax and this is about ensuring everyone pays the tax they should, creating a level playing field for the compliant majority. HMRC are working with industry bodies to make this as straightforward as possible. The check should take a few minutes every few years and is simply to confirm that someone is appropriately registered for tax.

Individuals, companies and any type of partnership must complete a HMRC tax check and include their tax check code if they are:

  • renewing a licence
  • applying for the same type of licence they previously held, that ceased to be valid less than a year ago
  • applying for the same type of licence they already hold with another licensing authority

These rules apply to the following licence types:

This also includes if you are new to Reigate and Banstead Borough Council but have been licensed by us or another council in the last 12 months.

Anyone applying for one of the above licences will have to confirm on their application that they are aware of the content of the HMRC guidance relating to their tax obligations. You must provide the tax check code to enable us to proceed with your application.

If you are new to licensing or have been out of the trade for more than 12 months then you will just need to confirm as part of your application that you are registering for tax. There is a declaration on the application form that you must complete to confirm you understand your obligation to register for tax, this declaration will validate your application and enable us to continue processing your licensing request.

About the tax check

You will be able to complete this tax check on GOV.UK you can sign in or register for a
 Government Gateway account. You will only need to answer a few questions to tell HMRC how you pay any tax that may be due on income you earn from your licensed trade. If you do not already have a Government Gateway account, you can sign up on GOV.UK.

The tax check should only take a few minutes. There’ll be guidance on GOV.UK and anyone who needs extra support will be able to complete the tax check by phone through HMRC’s customer helpline.
When you’ve completed the tax check, you’ll get a code. You must give this code to us when completing your application or renewal. We cannot proceed with your licence application or renewal until the tax check is completed and the code added to your application.
We will only receive confirmation from HMRC that you’ve completed the tax check, we will not have access to information about your tax affairs.

Complete a tax check

Useful links: