This guide is for taxi and private hire businesses. Three things are licensed separately: the vehicle, the driver, and — for private hire only — the operator who takes bookings. Licensing is run by the local council, not a national regulator, so conditions, fees and vehicle standards vary from area to area. The universal workplace duties are in Set up and run a safe land transport operation. This guide covers the taxi and private hire licensing regime.
The framework below is for England and Wales outside London. In London, taxis and private hire are licensed by Transport for London (TfL), not a borough council — private hire under the Private Hire Vehicles (London) Act 1998 and hackney carriages under the London cab order regime — so check TfL's requirements if you operate in the capital. Scotland licenses taxis and private hire under the Civic Government (Scotland) Act 1982, and Northern Ireland has its own regime — check the position for your area if you operate outside England and Wales.
A. Vehicle licence — hackney carriage or private hire
A hackney carriage can be hailed in the street or wait at a rank. A private hire vehicle (PHV) must be pre-booked. Each is licensed by the council under a different statutory power, and the vehicle must meet the council's standards.
B. Private hire operator licence
If you take bookings for private hire vehicles, you need a private hire operator licence and must keep records of every booking — the vehicle, driver and journey. Hackney carriage work taken off the rank or by street hail does not need an operator licence, but pre-booked work does.
C. Driver checks: enhanced DBS and fit and proper person
Drivers must pass an enhanced DBS check (with the children's and adults' barred lists where the council requires it) and a fit and proper person assessment before the council grants a driver's licence. Most councils require enrolment on the DBS update service for ongoing monitoring.
D. Vehicle inspection and testing
Licensed taxis and PHVs must pass a council compliance test in addition to the MOT, often more frequently for older vehicles. The council sets the standard, so check your authority's testing intervals and emission requirements.
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What to do next
Confirm the universal duties in the spine guide are in place, check your council's specific conditions, then complete the land transport compliance checklist.
Official sources
Authoritative guidance for taxi and private hire businesses.