Tax checks on taxi licences to be extended to Northern Ireland

Affected individuals will need to complete a tax check when applying to renew licences from April 2023

Legislation is being introduced in the UK Finance Bill 2022-23 to bring in a check on tax registration (a “tax check”) for renewed applications in Northern Ireland to drive a taxi.

An applicant who wishes to renew a licence will need to carry out a tax check. The Driver and Vehicle Agency will have to obtain confirmation from HMRC that the applicant has completed the check before being able to consider their renewed licence application.

The measure is intended to tackle part of the hidden economy, consisting of individuals and businesses with sources of taxable income that are entirely hidden from HMRC. The hidden economy tax gap is the difference between the amount of tax that should, in theory, be paid, and what is actually paid.

The legislative changes introduced will have effect on licence applications made from 1 April 2023.

Find out more about the move to extend tax checks to licences in Northern Ireland.

First published 25 July 2022