The Government has launched a technical consultation extending tax checks to licences in Scotland and Northern Ireland.

The measure will introduce a check on tax registration (a “tax check”) for renewed applications in Scotland for licences to:

• drive taxis and private hire cars
• operate a booking office
• carry on the business of a metal dealer on a site
• carry on business as an itinerant metal dealer

It will also introduce 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 licensing body (a local authority in Scotland or the Driver and Vehicle Agency in Northern Ireland) will have to obtain confirmation from HMRC that the applicant has completed the check before being able to consider their renewed licence application.

Legislation will be introduced in Finance Bill 2022-23 to amend the table in paragraph 1(2) of Schedule 33 to the Finance Act 2021 to add similar licences which operate in Scotland and Northern Ireland.

In Scotland these are licences to drive taxis or private hire cars, operate a booking office or deal in scrap metal. In Northern Ireland this is a licence to drive taxis. This amendment has a commencement date of 1 April 2023.

The legislation will also make necessary consequential changes to section 3 of the Civic Government (Scotland) Act 1982 and paragraph 7 and 8 of Schedule 1 to The Civic Government (Scotland) Act 1982. These changes will clarify how tax conditionality and licensing legislation interact.