Tax Conditionality

Guidance Note
Tax rules for Licence Applications

'Tax Conditionality' rules made by HMRC (His Majesty's Revenue and Customs) apply to the following Licences from Monday 2 October 2023:

  • Drive a Taxi or Private Hire Car
  • Operate a Booking Office
  • Carry on the business of a Metal Dealer on a site
  • Carry on a business as an Itinerant Metal Dealer

The Tax Conditionality rules are a national requirement and are not set by Stirling Council.

The rules are different depending on whether you are applying for your first Licence or applying to renew a Licence.

If you are applying for your FIRST Licence:

The rules mean you must confirm to the Council that you're aware of your tax responsibilities if you’re applying for a licence for the first time (or your last licence expired a year or more
If you are applying on behalf of a partnership you will have to confirm that all partners are aware of their tax obligations.

You can get more information on the HMRC website:

You should read the HMRC guidance about tax registration obligations at:

If you are applying to RENEW a Licence

You must complete a HMRC Tax Check give the Council the 9-character Tax Check Code.

You must carry out the tax check yourself. You cannot ask a tax agent or adviser to do this on
your behalf.

The Council will use the Tax Check Code to confirm that the Tax Check has taken place. The Council cannot make a decision to grant or refuse your Licence application without this.

The Council needs to see a Tax Check Code issued within the last 120 days. If you already have one but it's more than 120 days old, you'll need a new one.

These rules will also apply if you are applying for:

  • The same type of licence you previously held, that ceased to be valid less than one year ago.
  • Applying for the same type of licence you already hold with another licensing authority.

If you are applying for different types of licence you must complete a tax check for each one.

If you are applying on behalf of a partnership, you must provide confirmation that each partner in the application has completed a tax check.

You can get advice on Tax Checks from the HMRC website:

Why do I have to tell the Council about my tax?

HMRC has powers to ask Councils for information about licence applicants in terms of the following:

‘Schedule 23 to Finance Act 2011 (Data Gathering Powers) and Schedule 36 to Finance Act 2008 (Information and Inspection Powers), grant HMRC powers to obtain relevant information from third parties. This includes licensing bodies being required to provide information about licence applicants.’

The Council does not deal with questions of how much tax you should pay or what allowances or reliefs you might be entitled to. If you have any questions about your tax affairs you should contact HMRC. The Council will only be asking if you are registered with HMRC.