Assessing an application for a taxi operator licence
When you are applying for a taxi operator’s licence (TOL), the most important consideration is based on whether you can fulfil the role without posing any threat to the general safety of the public. If you are not considered ‘fit and proper’, your application will be refused.
Guidelines for assessment
When assessing your application, the Driver & Vehicle Agency (DVA) has a set of guidelines which it has to apply to make sure that there is a consistent approach. However, these guidelines are not exhaustive or definitive and each application will be considered on its own merits.
The guidelines are based on the following criteria:
- your business repute
- your right to live and work in the UK
- any other TOL applications
- radio licences
- insurance
- VAT and accounts
Proving you are ‘fit and proper’ to hold a TOL
Your history and past business experience might affect your application to become a taxi operator. Consideration is given to any criminal history, any applications to be a taxi operator you made in the past, any history of bankruptcy or of disqualification.
To be licensed as a taxi operator, you will need to prove that you are ‘fit and proper’, or if you are applying as a company or a partnership, you will need to prove that all the individuals who make up that firm are ‘fit and proper’. Your application must be accompanied by a Basic Disclosure Certificate for each named person. You can get this from Access NI.
When your AccessNI check is carried out, if you have no criminal history, you’ll receive a digital disclosure certificate. You can view the certificate from your nidirect account. To send a copy of your digital certificate to DVA, choose the share button on your nidirect account and include the email address at the link below.
When you share your disclosure certificate with the DVA, it’s only available to view for three days.
If the certificate shows a criminal history you’ll receive a printed certificate by post. This should be sent to the mailing address at the link above.
It will only be returned if you send a prepaid self-addressed envelope, or it will be securely destroyed on your behalf.
Right to work
When applying for a taxi operator licence you must have a right to work within the UK. By law, the Department for Infrastructure has to be satisfied that you have a right to work in the UK before a licence can be given.
To prove your right to work in the UK, your application must include original documents from lists A and B from the right to work checklist and you must be available to go to an interview with Passenger Transport Licensing Division in Coleraine.
Radio licences
If you talk with your affiliated drivers by a two-way radio or you use a computerised booking system, you will need a business radio licence from Ofcom (Office of Communications). You can get application forms from Ofcom (Office of Communications) NI, see the link below for contact details.
Insurance
You will need employer’s liability insurance and if your operating centre is open to the public you will also need public liability insurance.
Employer’s liability insurance
By law, most employers need employers’ liability cover which allows businesses to meet the costs of compensation and legal fees for employees who are injured or who are made ill at work through the fault of the employer. The policy should have a minimum indemnity of £5million for any one event.
Public liability insurance
If you have an operating centre that is accessible to the public, you must have an insurance policy against public liability risks. The policy should have a minimum indemnity of £5million for any one event.
VAT and accounts
If you are registered for VAT you will need to send your VAT Registration Certificate with your application, or an acknowledgement from HMRC that you have applied for VAT registration and then present the registration certificate to the DVA whenever HMRC sends it to you.
If you or your partnership is not VAT registered you will have to give other evidence that your business tax obligations are in order:
- if you are a sole trader you will have to give your last HMRC self-assessment
- if you are starting a business or becoming self-employed you will have to give confirmation from HMRC that you have registered for self-assessment
- if in a partnership, each partner must give a copy of their HMRC self-assessment and partnership tax return
- if in a new partnership, each partner must send proof of registration for self-assessment and registration of the partnership for business taxes
If you choose not to prepare formal accounts you still need to keep records of income and spending over a set accounting period. You may need to produce these.