Councils license taxis and private hire vehicles. The driver, the vehicle and any private hire operator are licensed separately, and each licence you need must be granted before you carry a fare. Which licences you need depends on your role as driver, vehicle owner (proprietor) or operator, and they can be held by different people.
Before you apply
Outside London, Scotland and Northern Ireland, you apply to the council for the area where you will work. The steps below follow the order an owner-driver would apply in. Take only the steps that fit your role. The rules behind each licence, and the difference between a taxi and a private hire vehicle, are in Taxi and private hire licences and insurance: what you need.
You need an operator licence only if you take private hire bookings or dispatch private hire vehicles. A licensed taxi can accept pre-booked fares without one.
Get your driver licence
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1. Contact your licensing team
Ask for the application forms, fees, tests and current timescales before you apply. Each council sets its own conditions, fees and vehicle standards.
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2. Apply for your driver licence
Send the council's application with your driving licence details and proof of your right to work in the UK. Apply for the enhanced DBS check with barred-list checks that the council asks for, and join the DBS Update Service if the council expects it. Sit any medical, knowledge or driving assessment the council sets. If you already hold the same type of licence from another council, get an HMRC tax check code before you apply. You do not need one for a first application.
Insure and test your vehicle
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3. Arrange hire and reward insurance
Ask your insurer for hire and reward cover on the vehicle, and ask it to confirm that use in writing. Put the cover in place before you apply for the vehicle licence, because the council checks your certificate when it licenses the vehicle.
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4. Apply for your vehicle licence
If you own the vehicle, apply to the same council that licensed you as a driver. Send your insurance certificate with the vehicle's details. Book the council's compliance test and get the MOT when it is due.
Get an operator licence for private hire
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5. Apply for your operator licence
If you take private hire bookings, apply to the same council that licensed your drivers and vehicles. Set up your booking records before you take your first booking. Ask the council what public liability cover it expects. Arrange employers' liability insurance if you employ anyone, including office staff.
Start work and renew your licences
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6. Check every licence before your first fare
Confirm that your driver licence, your vehicle licence and, if you take private hire bookings, your operator licence have all been granted. Be ready to produce your driver licence, because a council officer or the police can ask to see it.
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7. Renew before each licence expires
Diary the expiry date of every licence and of your insurance certificate, and apply to renew before the date. Complete the HMRC tax check before you renew a driver licence. Private hire operators in England and Wales do the same. Keep your DBS check up to date as the council requires.
London, Scotland and Northern Ireland
These areas have their own licensing bodies. Apply to the body for the area where you will work.
If something goes wrong
If the council refuses an application, ask for its reasons in writing. The appeal route depends on the type of licence and the decision, so ask the council which applies.
If you want to work in a different council area, ask that council which licences you need. If you already hold the same type of driver licence from another council, get an HMRC tax check code before you apply. Step 2 explains this.
If your hire and reward cover lapses, stop carrying passengers until it is back in force. Check your licence conditions for a duty to tell the council.
If the vehicle fails the council's compliance test, repair it and ask the council about a retest.
After you are licensed
Before your first fare, read the rules behind each licence and your duties to passengers. If you have not yet registered with HMRC, do so now and set up your business records.
Legal basis
Primary legislation and key regulations
Related Guvnor guides
Start a taxi or private hire business
Choose your taxi or private hire business model
Taxi and private hire licences and insurance: what you need
Duties to passengers for taxi and private hire drivers
Taxi operator licence in Northern Ireland: how to apply and what you must keep
Business insurance: what you need
Employers' liability insurance: the complete guide
Official guidance
Find your local council (opens in a new tab)
GOV.UK
Driver licences for taxis and private hire vehicles (opens in a new tab)
GOV.UK
Vehicle licences for taxis or private hire vehicles (opens in a new tab)
GOV.UK
Private hire vehicle operator licence (opens in a new tab)
GOV.UK
Confirm a tax check for taxi, private hire or scrap metal licence applications (opens in a new tab)
GOV.UK
Taxi and private hire licensing (opens in a new tab)
Transport for London
Apply for or renew a taxi driver licence (opens in a new tab)
nidirect
Local Government (Miscellaneous Provisions) Act 1976, Part II (opens in a new tab)
legislation.gov.uk
Civic Government (Scotland) Act 1982, Part II (opens in a new tab)
legislation.gov.uk
Taxis Act (Northern Ireland) 2008 (opens in a new tab)
legislation.gov.uk