Acorn Insurance

How Do I Become a Taxi Driver? A Step-by-Step Guide

Acorn Insurance

Acorn Insurance

Tuesday, 22nd July 2025

Table of Contents

Step 1: Decide Between Public Hire or Private Hire

Step 2: Apply for the Correct Taxi Licence

Step 3: Choose the Right Vehicle

Step 4: Understand Your Work Options

Step 5: Don’t Forget Insurance

In Summary


Are you considering a career change or looking to supplement your income with a flexible, rewarding job? Becoming a taxi driver in the UK might be the opportunity you’re looking for. With high demand, flexible hours, and the option to work independently or through platforms like Uber and Bolt, taxi driving can suit a wide range of lifestyles.

Here’s a practical, step-by-step guide to help you get started.

Step 1: Decide Between Public Hire or Private Hire

Before you apply for a licence, it’s important to understand the two main types of taxi driving in the UK:

  • Public Hire Taxis (Hackney Carriage/Black Cab):
    These taxis can be hailed on the street or at taxi ranks. They’re licensed to pick up passengers without a prior booking.
  • Private Hire Vehicles (PHVs):
    These vehicles must be pre-booked through an operator or app (like Uber or Bolt). They cannot legally pick up passengers on the street.

Why this matters:

Each type requires a different licence and comes with different responsibilities and benefits. For example, public hire offers street-pickup flexibility, while private hire may offer steadier demand through pre-arranged bookings.

Step 2: Apply for the Correct Taxi Licence

Licensing requirements vary by region, so it’s essential to check with your local council. Here’s how to get started:

If you’re driving in London:

You’ll need a licence from Transport for London (TfL).

If you’re based elsewhere in the UK:

You’ll need to apply through the local council authority which you plan to work under. You can find this via the Gov.uk council checker.

Eligibility requirements typically include:

  • Holding a full UK (or EU) driving licence for at least 12 months
  • Being over 21 years old (may vary outside London)
  • Passing a Disclosure and Barring Service (DBS) check
  • Being assessed as a ‘fit and proper’ person by your local licensing authority

You may also need to:

  • Complete a route knowledge test (e.g. ‘The Knowledge’ in London)
  • Pass an English language test
  • Take a driving assessment carried out by a DSA Driving Test Examiner
  • Attend training (though not always necessary, training courses to become a taxi driver can be found through the UK national careers service)
  • Have a medical examination to show you are medically fit within the DVLA requirements. If you have any disabilities, you may still be able to apply as long as your vehicle has suitable modifications.

Important:

If you’re using your own vehicle, you’ll also need a taxi vehicle licence from the local authority in which you are planning to operate.

Step 3: Choose the Right Vehicle

Your vehicle is your workplace — comfort, safety, and fuel efficiency matter. Whether you plan to:

  • Lease a vehicle
  • Buy your own
  • Use your existing car (subject to approval)

…it’s important to choose a model that’s both reliable and economical.

For ideas, read our guide: Top 5 Cars for Taxi Drivers

If you’re interested in leasing, check out: 5 Benefits of Leasing a Private Hire Vehicle

Step 4: Understand Your Work Options

As a taxi driver, you can:

  • Work independently (as a self-employed driver)
  • Join a local taxi firm
  • Drive for a rideshare platform like Uber or Bolt

Each route offers different levels of flexibility and responsibility. Many drivers opt for self-employment, but remember this includes handling your own taxes, record-keeping, and taxi insurance.

Acorn tip: If you’re driving part-time to boost your income, working for a private hire firm can reduce paperwork. An established private hire taxi firm will often handle key administrative tasks on your behalf, meaning that you don’t have to take care of these yourself.

Why Become a Taxi Driver?

Consistent demand

Taxis are needed in countless everyday situations:

  • Commuters without access to public transport
  • Nights out or events where people can’t drive
  • Elderly or mobility-impaired passengers
  • Airport transfers
  • Poor weather conditions

Flexible working hours

You set your own schedule. Work mornings, evenings, weekends, or a mix! Whether you want full-time work or a side gig, taxi driving adapts to your lifestyle.

Step 5: Don’t Forget Insurance

All taxi drivers must have the right taxi insurance in place. Standard car insurance won’t cover you for hire and reward purposes.

You may need:

It’s essential to choose a policy that matches your type of work and vehicle use. For further support, click here to find a broker to suit your needs.

In Summary

Becoming a taxi driver takes planning, paperwork, and preparation, but the rewards can be substantial. Here’s your quick checklist to get started:

  1. Decide between public or private hire taxi driving
  2. Check your local council’s licensing requirements
  3. Choose and licence your vehicle
  4. Decide how you want to work – self-employed, with a firm, or via an app
  5. Don’t Forget Insurance

Once you’ve completed the licensing process, chosen the right vehicle, and secured appropriate insurance, you’ll be ready to hit the road with confidence. Taxi driving offers more than just a way to earn—it’s a career that puts you in control of your schedule, your workload, and your goals. Whether you’re seeking the freedom of self-employment, the reliability of working with a firm, or a flexible side income, this path provides real opportunities to build a role that fits around your life.