Major changes to licensing

Major changes to licensing 

New tax checks are now in force and they present significant risks for 400k businesses, licensed tradespeople and licensing authorities.

Does this affect you? 


What is the change? Introducing conditionality

For the first time, licences to drive taxis, to drive or operate Private Hire Vehicles (PHVs), or to deal in scrap metal is now 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 also have significant new work to do in applying these changes and managing the process for licence applicants. They need to engage with individuals and businesses affected, and many of these are currently unaware that this is now in force. 
HMRC accepts that there will be additional costs to local authorities in adapting systems and processes to accommodate these changes. As a result, HMRC has 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 and beyond the introduction of tax conditionality in April 2022.

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


untied report

untied's research among local authorities

untied has released three reports on what local authorities think about readiness for the changes and how it's changing over time.

Key untied conditionality findings - March 2022

  • Over a third (36%) of LAs say they weren't provided with full details of the change
  • Two in five are concerned about the costs involved
  • Almost a third (32%) are ‘very prepared’, three in five (60%) are ‘somewhat prepared’
  • Over a quarter (28%) say that they are not confident that all operators in their area are aware of these checks
  • Key concerns include disruption for those being licensed (64%), managing those who end up being rejected (52%), the implications of refusing applications (52%)
March 2022 graph for website

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