From the 4th April 2022, there will be a small addition to the checks licensing bodies such as Ryedale District Council already have in place. You’ll need to complete a tax check with HM Revenue and Customs (HMRC) to get or renew a licence to:
• Drive taxis or private hire vehicles
• Operate private hire vehicle businesses (Private Hire Operator)
• Deal in scrap metal.
The changes will only apply in England and Wales.
How the changes may affect you:
What you need to do will depend on whether you’re applying for a licence for the first time or whether you’re making a subsequent application, such as renewing a licence:
|Getting a new licence|
|If you are applying for a licence for the first time, you will not need to complete the tax check. However we will ask you to read HMRC guidance on what you need to do to be properly registered for tax in the future and you’ll need to confirm you have done this|
|Renewing a licence|
|From the 4th April 2022, if you renew or apply for a subsequent licence under a different licensing body, you’ll have to do a tax check. You’ll be able to do this online through a digital service.|
About the tax check:
You will be able to complete this tax check here through your Government Gateway account from 7th March 2022. If you do not already have a Government Gateway account, you will need to create one.
The tax check should only take a few minutes. You will only need to answer a few questions to tell HMRC how you pay any tax that may be due on income you earn from your licensed trade. There will be guidance on the gov.uk website, and you can get help from HMRC if you need extra support, for example if you need information in a different format or need help filling in forms.
When you’ve completed the tax check, you’ll get a code. You must give this code to Ryedale District Council. We cannot proceed with your licence application or renewal until the tax check is completed and they’ve received the code. We will only receive confirmation from HMRC that you’ve completed the tax check and will not have access to information about your tax affairs.
What you need to do:
If you have not registered to pay tax on earnings from your licensed trade, please go to the gov.uk website to check if you need to register as soon as possible:
If you’re an employee find out how you pay income tax through PAYE here.
If you’re self-employed you can register for self-assessment here.
If you operate through a limited company you can find out about corporation tax here.
If you should have been registered to pay tax and have not been, HMRC will work with you promptly and professionally to get you back on the right track. It’s your responsibility to get your tax right, but HMRC are there to help. If you have any further questions, please find more information on the government website here or contact the Licensing Team using this form.