Tax Conditionality Checks

HMRC has published further guidance to help licensees and licensing bodies prepare for the new tax checks that were introduced in Schedule 33 of Finance Act 2021. The detailed guidance is in addition to and sits alongside the preparatory guidance published in October 2021, which is still available.

This will be a new addition to the checks that licensing bodies already have in place, and it will need to be completed when people are renewing their licences to:

drive taxis or private hire vehicles  
operate private hire vehicle businesses   
deal in scrap metal

The changes will apply in England and Wales from April 2022. 

The new guidance is now available for licensees to tell them how to do their tax check. They are asked to read this guidance and to familiarise themselves with what they will need to do for the tax check. They are also asked to ensure they are registered to pay the appropriate tax on their licensed income.