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Taxi drivers will have to show tax registration status under new plan

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An illuminated taxi sign on top of a black cab

Taxi drivers in Northern Ireland will have to show that they are registered to pay tax when renewing their licences under a new government plan.

The tax check is due to be introduced in April 2023.

Taxi drivers in England and Wales will also face the checks from April next year.

It is part of a plan aimed at cracking down on the underpayment of tax in some parts of the economy.

The government says the checks will be done online and should only take a few minutes.

It added: "You will only need to answer a few questions to tell HMRC how you pay any tax that may be due on income you earn from your licensed trade."

Drivers who are applying for a taxi licence for the first time will not need to do the tax check.

In other parts of the UK, the checks will also apply to people renewing licences for scrap metal dealing.

Northern Ireland does not have a distinct licensing regime for dealing in scrap metal which is instead regulated by broader environmental regulations.

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