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Published on 22 June 2021

Tax checks for taxi drivers and scrap metals dealers in Scotland and Northern Ireland

LITRG has responded to HMRC’s consultation on extending the principle of tax conditionality, where the renewal of certain public sector licenses is conditional on demonstrating registration for tax, to Scotland and Northern Ireland from April 2023. Similar measures have already been legislated for England and Wales and will apply from April 2022.

Illustration of a black cab taxi

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We agree that if tax conditionality is to apply at all, it should apply across the whole of the UK. However, we stress that for tax conditionality to be a success, it needs to be paired with a greater focus on educating the public about the importance of using licensed businesses in the first instance.

HMRC should also review the effectiveness of the measure as will apply in England and Wales and ensure any lessons are learnt before extending it to the rest of the UK.

The discussion documents can be found here:

Hidden economy conditionality – Northern Ireland and Scotland

Our response can be found here:

LITRG repsonse: Hidden economy conditionality: Northern Ireland and Scotland

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