Minutes:
Members received a verbal update in respect of the new taxi and private Hire tax conditionality checks, which had resulted from the recent Finance Act 2021 (Schedule 33).
The act introduced additional checks, which would form a part of applications to renew licences for taxi and private hire drivers, private hire vehicle (PHV) operators and scrap metal dealers in England and Wales.
The new measures aimed to uncover and discourage the hidden economy, which consisted of individuals and businesses with sources of taxable income that were entirely hidden from Her Majesty's Revenue and Customs (HMRC).
From 4 April 2022, licence applicants would have to complete a ‘tax check’ and licensing bodies would need to confirm that the applicant has completed the check.
A tax check would be conducted for renewed applications in England and Wales for licences to:
· drive taxis and Private Hire Vehicles
· operate a Private Hire business
· carry on the business of a scrap metal dealer on a site
· carry on business as a mobile collector of scrap metal
On application for the renewal of a licence, the local authority would have to obtain confirmation from HMRC that the applicant had completed the check before being able to consider their renewed licence application.
Once the 9 digit number had been provided a simple check on the HMRC website would give the Council confirmation that the applicant has registered for tax or not. If the applicant did not register for tax, the licence would not be renewed.
In preparation for the new requirements, the Council had notified all drivers and operators by means of a newsletter in October and January that they should register for tax before renewal of their licence after 4th April 2022. First-time applicants would not have to complete the check.
RESOLVED that the update be noted.