Commentary

A6.660 Tax checks on licence applications

Administration and compliance

A6.660 Tax checks on licence applications

A6.660 Tax checks on licence applications

For the latest New Development, see ND.2065.

With effect on and after 4 April 2022, licensing authorities have an obligation when dealing with certain licence applications to ensure that applicants are aware of their tax responsibilities or have completed a tax compliance check (a 'tax check')1. The action that needs to be taken depends on whether the applicant is making a first-time application or seeking to renew an existing licence. The rules are sometimes given the label 'conditionality' or 'tax conditionality', given that the granting of a licence is conditional on the rules being adhered to. The legislation applies whether the applicant is an individual, a company or a partnership, and covers applications for licences required by2:

  1.  

    •     taxi drivers

  2.  

    •     private hire drivers

  3.  

    •     private hire vehicle operators

  4.  

    •     scrap metal dealers carrying on business at a site

  5.  

    •     scrap metal dealers carrying on business as a mobile collector

Guidance on what licensing authorities must do when reviewing applications received on and after 4 April 2022 is expected to be published in January 20223.

The Government's intention is that conditionality will ultimately apply across the whole of the UK, but it is being legislated in tranches. The Finance Act 2021 conditionality legislation applies to England and Wales. Similar legislation for Scotland and Northern Ireland will be introduced at an unspecified later date4.

First-time applications

In the case of a first-time application for a licence, the licensing authority is required to5:

  1.  

    •     draw the applicant's attention

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