Key facts
- England and Wales
- Council, or TfL in London; operator licences last up to 5 years[1]
- Same authority rule
- Driver, vehicle and operator licences from one authority[1]
- Market, England (1 April 2026)
- 290,000 private hire vehicles (+13%), 52,300 taxis (-7%)[4]
- 9 or more passengers
- PSV operator licence instead[5]
The UK order of steps
- 1
Pick taxi or private hire
Taxis (hackney carriages) can be hailed and use ranks; private hire is pre-booked only. Most new firms start in private hire.[1]
- 2
Register the business
Sole trader or limited company, in the name the licences will carry.
- 3
Apply for the operator licence
To the council, or TfL in London; it lasts up to 5 years and each renewal needs an HMRC tax check.[1]
- 4
License drivers
Checks, medical and the council's tests; driver licences usually run for 3 years.[2]
- 5
License and insure each vehicle
With the same authority that licensed the drivers.[3]
- 6
Set up bookings and records
Phone, web and app bookings, with the booking records your licence requires.
Who licenses taxis in each part of the UK?
In England and Wales the local council, or Transport for London in London. Scotland's councils license taxis, private hire cars and booking offices under the Civic Government (Scotland) Act 1982. Northern Ireland runs a separate system through the Department for Infrastructure, with taxi operator licences applied for through nidirect.[1][6][7]
Separate guides: Scotland, Northern Ireland, and council-by-council licensing.
What does it cost to start in the UK?
Council fees vary, so price them from your council's page; the rest is the car, insurance, software and a few months' running costs. A line-by-line UK budget with a worked council example is in what it costs to start a taxi business in the UK.
Is the UK taxi market growing?
Private hire is: England had 290,000 licensed private hire vehicles on 1 April 2026, 13% more than in 2024, while licensed taxis fell 7% to 52,300 and driver licences rose 9% to 417,300.[4]
What if I want to run minibuses?
Up to 8 passengers stays within taxi and private hire licensing. A vehicle that can carry 9 or more passengers for hire, or one charging separate fares, needs a PSV operator licence from the Traffic Commissioner instead.[5]
Frequently asked questions
Do I need a licence to start a taxi company in the UK?
Yes: drivers and vehicles always need licences, and a business taking private hire bookings needs an operator licence (a booking office licence in Scotland where the council requires one).
How long does UK taxi licensing take?
Weeks rather than days, because of background checks, medicals and tests; see how long it takes to get a taxi licence.
Sources
Fees and rules change. Each source is the official page we read, with the date we read it; check it before you apply or pay.
- [1] GOV.UK: Operator licences for private hire vehicles (read 3 Nov 2026)
- [2] GOV.UK: Driver licences for taxis and private hire vehicles (read 3 Nov 2026)
- [3] GOV.UK: Vehicle licences for taxis or private hire vehicles (read 3 Nov 2026)
- [4] Department for Transport: Taxi and private hire vehicle statistics, England: 2026 (published 13 August 2026) (read 3 Nov 2026)
- [5] GOV.UK: PSV (public service vehicle) operator licences (read 3 Nov 2026)
- [6] legislation.gov.uk: Civic Government (Scotland) Act 1982 (read 3 Nov 2026)
- [7] nidirect: Apply for a taxi operator licence (read 3 Nov 2026)