Major changes to licensing

Major changes to licensing 

New tax checks from April 2022 present significant risks for 400k businesses, licensed tradespeople and licensing authorities.
Are you ready?


What is the change? Introducing conditionality

For the first time, from April 2022 licences to drive taxis, to drive or operate Private Hire Vehicles (PHVs) or to deal in scrap metal will be conditional on HMRC checks around tax compliance.

These changes are significant. If people fail the checks, then this could mean drivers off the road or other trades being restricted.

We have also identified that local authorities are not prepared - risking backlog through the system.

400,000 businesses operating in the taxi, private hire vehicle and scrap metal sectors will be most affected.

HMRC expect the changes to affect 400,000 businesses. These businesses need to understand the likely risks they face and put in place assurance and mitigation processes to make sure that they can keep operating through the adoption of conditionality.
untied is working with taxi and PHV operators to keep drivers on the road with ease and confidence.

What's my risk?

The risk varies between organisations and activities. Book a call to talk through what your risk could be and how to manage it.
Taxi/PHV operators
Taxi drivers-1
Private hire vehicle (PHV) drivers-1
Scrap metal businesses-1
Local authorities-1

Local authorities

Local authorities in England and Wales will also have significant new work to do in applying these changes and managing the process for licence applicants. They’ll need to engage with individuals and businesses affected, and many of these are currently unaware this is coming.
HMRC accept that there will be additional costs to local authorities in adapting systems and processes to accommodate these changes. As a result, HMRC have indicated that additional funding will be made available to licensing bodies.


How is untied helping with the change?

untied is working with operators and local authorities to help them introduce these changes as efficiently as possible. We are liaising with the Institute of Licensing and those affected by these changes, helping PHV and taxi drivers to ensure their tax is in good order and they are correctly registered for tax, in the run-up to the introduction of tax conditionality in April 2022.

Did you see us in the Institute of Licensing's Summer 2021 issue of Link magazine?


IoL advert for how untied can help authorities
untied report

untied's research report among local authorities

untied has released a report on what local authorities think about readiness for the changes.

Key untied conditionality research findings

  • Less than a quarter (23%) of local authorities were “well aware” of the changes and less than one in ten (9%) “totally prepared”
  • Almost three in five local authorities are concerned about HMRC readiness around the forthcoming tax licensing changes
  • Key concerns include disruption for those being licensed (59%), managing those who end up being rejected (68%), the implications of refusing applications (59%)
Level of preparation of local authorities for conditionality - untied

Got questions?

We are always here to help. Drop us an email at or book a call.

As featured in