"From April 2022 in England and Wales, the renewal of licences to drive taxis and private hire vehicles, to operate a private hire vehicle business, or to deal in scrap metal, will only be given if the person applying can show they have completed a tax check with HMRC.
As decisions on applications for these licences are conditional on the tax check, this is known as ‘tax conditionality’.
Questions in the tax check include a small number of multiple-choice questions to determine whether applicants have notified chargeability to income tax or corporation tax, and whether income from the licensed activity has been reported on a tax return.
Because of the simple nature of the check and its link to licensing processes, the design of the service does not include an option for agents to complete the check on a client’s behalf.
We would expect agents to be involved in wider processes linked to the tax check. For example, this may include agents’ supporting customers who need to register for the appropriate tax.
If you have any questions about tax conditionality or would like to meet and discuss it with us, email [email protected] "
Once again, the objective is sound enough, although an article in yesterday's Agent Update is the first that I've heard of it. But my concern is the vagueness in the message to Agents as, once again, they "expect agents to be involved" and yet "the design of the service does not include an option for agents to complete the check on a client’s behalf". In other words they want Agents to somehow support their objectives (presumably via free communication/advisory services and hand-holding), but not do anything that the client might regard as a chargeable service (like preparing/submitting accounts). 'Cake, your, having and eat it' spring to mind!