Tax Checks on Licence Renewals

Today the HMRC announced proposals to introduce ‘New Tax Checks on Licence Renewal Applications’.  It states:

Licensing bodies will be required to signpost first-time applicants to HMRC guidance about their potential tax obligations and obtain confirmation that the applicant is aware of the guidance before considering the application. Where the application is not a first-time application (a renewed application) the licensing body must, before considering the application, obtain confirmation from HMRC that the applicant has completed a tax check.

This will apply to the following:

  • Hackney Carriage Driver Licences
  • Private Hire Driver Licences
  • Private Hire Operator Licences
  • Scrap Metal Dealer Licences
  • Scrap Metal Collector Licences

A satisfactory tax check, and confirmation from HMRC, will be required, as a condition, before any licence application may be considered by a licensing authority.  These measures will form part of the Finance Bill 2020-21 and are expected to have effect from 4th April 2022.

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