Scottish Taxi Driver Tax Checks Come Into Force From Today

2nd October 2023

Scotland's 29,000 taxi and private hire drivers need to complete HM Revenue and Customs (HMRC) tax checks when renewing their operating licence, starting from today (2 October 2023).

The checks have been introduced to promote tax compliance within the industry and make it fairer for the vast majority of drivers who already pay their taxes correctly.

Councils will administer the process in Scotland, which involves making sure drivers have completed their tax check before their licence applications can be considered.

The checks will also be required for those in Scotland renewing their licence to operate a booking office or a scrap metal site, plus those who are metal dealers.

Marc Gill, Director of Individuals and Small Business Compliance, HMRC, said "While most taxi drivers in Scotland pay their taxes accurately and on time, we want to level the playing field and tackle the small minority who don't.

"The hidden economy is estimated to cost the UK Government £2 billion in unpaid taxes, which deprives funds for the vital public services we all rely on.

"By linking tax compliance to licence renewal, the government hopes to discourage participation in the hidden economy and encourage drivers to fulfil their tax obligations."

The checks were rolled out in England and Wales in April 2022, where more than 120,000 people have already successfully gone through the process.

When renewing their licence, drivers will need to use a Government Gateway account to complete the tax check on GOV.UK, which is quick, simple and straightforward. After answering a few questions about their tax registration, HMRC will provide applicants with a tax check code. This code must be given to the local council before they can proceed with the licence renewal application.

If applicants don't already have a Government Gateway account, they can go to GOV.UK and search ‘register for HMRC services' to sign up.

Councils will only use the tax check code to confirm that someone has completed a tax check with HMRC. They won't have access to information about an individual's tax affairs.

The checks only apply to those renewing their licences. First time applicants will be asked to read HMRC guidance on what they need to do, to be properly registered for tax in the future and will need to confirm they have done this.

If an individual hasn't registered to pay tax on earnings from their licensed trade, they should go to GOV.UK to check if they need to register as soon as possible by searching ‘how you pay income tax'. If they should have been registered to pay tax, HMRC will work with them to get them back on the right track.

Applicants can get help from HMRC if they need extra support. Visit GOV.UK and search ‘Get help from HMRC if you need extra support’.

Scottish Transport Statistics 2022
Pdf 415 Pages