Taxi licensing in the UK is regulated by local authorities, usually city or district councils. Anyone who wants to carry passengers for hire or reward must normally obtain licences for:
- The driver – allowing the individual to work as a taxi driver
- The vehicle – confirming the car meets taxi safety and licensing standards
- The operator – required for businesses that take bookings for private hire journeys
Before issuing a licence, councils typically require drivers to complete checks such as background screening, medical assessments, and vehicle inspections.
There are also two main types of taxi service in the UK:
- Hackney carriage taxis – taxis that can be hailed on the street or from ranks
- Private hire vehicles (PHVs) – vehicles that must be pre-booked through an operator
Although the exact rules vary between councils, the licensing system exists to help ensure safe vehicles, properly vetted drivers, and regulated passenger transport services across the UK. You can find out more about taxi licensing by visiting the relevant government webpage: https://www.gov.uk/taxi-driver-licence.
Who regulates taxi licences in the UK?
A taxi licensing authority is the organisation responsible for regulating taxis and private hire vehicles in a particular area. In most parts of the UK this is the local council, which sets licensing rules and issues driver, vehicle and operator licences. In London, taxi licensing is handled by Transport for London (TfL) instead of individual borough councils.
Taxi licensing is handled by local licensing authorities, which are typically the council where a driver intends to operate.
These authorities are responsible for:
- Issuing taxi driver licences
- Licensing vehicles used for passenger transport
- Licensing private hire operators or booking companies
- Setting local requirements for drivers and vehicles
In most parts of the UK, this role is carried out by the local council’s licensing department.
However, in London the system works slightly differently. Taxi and private hire licensing is managed by Transport for London (TfL) rather than individual borough councils. TfL regulates:
- London black cabs (hackney carriages)
- Private hire drivers and vehicles
- Private hire operators, including ride-hailing platforms
Outside London, licensing responsibilities remain with local councils, meaning some requirements can vary between areas.
What licences do taxi drivers need in the UK?
A taxi driver licence is the official permission issued by a licensing authority that allows someone to carry passengers for hire or reward. Drivers must usually pass background checks, medical assessments, and licensing requirements set by their local authority before they can legally operate.
Most drivers need two main licences before they can legally operate.
Taxi driver licence
A taxi driver licence allows a person to transport passengers for hire or reward.
Typical requirements include:
- Holding a full UK driving licence
- Passing an enhanced DBS background check
- Completing a medical examination
- Meeting any local council knowledge or training requirements
Some councils also require drivers to complete training covering areas such as safeguarding, passenger safety, or disability awareness.
You can request your own DBS background check by visiting the appropriate government webpage: www.gov.uk/request-copy-criminal-record.
Taxi vehicle licence
The vehicle used for taxi work must also be licensed by the local authority.
Councils usually require:
- A vehicle safety inspection
- Compliance with vehicle age or emissions standards
- Display of official taxi licence plates or identification
- Valid taxi insurance
Regular inspections help ensure vehicles remain safe and suitable for passenger transport.
Licensed vehicles must also meet road safety requirements, including holding a valid MOT certificate, which confirms the vehicle meets the government’s minimum road safety standards.
Hackney carriage and private hire licensing
Taxi licensing requirements differ depending on whether the vehicle is licensed as a hackney carriage or a private hire vehicle (PHV).
The key difference is how passengers are picked up:
- Hackney carriage taxis can accept passengers directly from the street or from taxi ranks.
- Private hire vehicles must always be booked in advance through a licensed operator.
Because hackney carriage taxis can pick up immediate fares, councils often apply different operating rules and vehicle standards.
If you’d like a deeper explanation of the differences between these taxi types, you can read our guide: Private Hire vs Black Cab: What’s the Difference?
How do you apply for a taxi licence?
Although each council has its own process, taxi licensing applications usually follow a similar set of steps.
1. Apply through your local licensing authority
Applications are normally submitted through the licensing department of the relevant council or authority.
Applicants typically need to provide identification documents and pay an application fee.
2. Complete background checks
Most councils require several checks before issuing a licence, including:
- Enhanced DBS check
- DVLA driving record check
- Medical assessment
These checks help ensure drivers are suitable to carry passengers safely.
3. Pass any required training or tests
Some councils require drivers to complete additional assessments such as:
- Local knowledge tests
- Safeguarding training
- English language assessments
The exact requirements depend on the licensing authority.
4. License your vehicle
Before passengers can be carried, the vehicle must also be licensed.
This typically involves:
- Mechanical safety inspection
- Compliance with taxi vehicle standards
- Issuing official taxi licence plates
Once both the driver and vehicle licences are approved, the driver can begin operating legally.
How long does a taxi licence last?
Taxi licences are typically issued for one to three years, depending on the licensing authority.
Drivers must renew their licence before it expires. Renewal may involve updated:
- DBS checks
- Medical assessments
- Vehicle inspections
Keeping licences valid is essential for continuing to operate legally.
Do taxi drivers need specialist insurance?
Yes. Vehicles used to carry passengers for hire or reward require specialist taxi insurance.
Standard car insurance policies usually do not cover commercial passenger transport.
Taxi insurance policies are designed for professional drivers and may cover:
- Private hire vehicles
- Hackney carriage taxis
- Multiple driving activities, such as passenger work alongside delivery work
If a driver changes the type of work they carry out, this may be considered a change in circumstances, which should normally be discussed with the broker or insurer.
Why taxi licensing exists
Taxi licensing is designed to protect both passengers and drivers.
By setting standards for drivers, vehicles, and operators, licensing authorities aim to ensure:
- Passenger safety
- Proper background checks for drivers
- Safe and well-maintained vehicles
- Fair regulation across the taxi industry
Although rules vary slightly between councils, the overall framework helps maintain safe and reliable taxi services across the UK.