How to apply for a private hire operator licence

A private hire operator's licence is required to enable a person to accept bookings for private hire vehicles. One person or business can be licensed and employ or sub-contract an unlimited number of licensed vehicles. However, a licensed private hire driver cannot accept any bookings unless he either holds an operator's licence or works for a licensed private hire operator.

Cross border sub-contracting private hire

Any private hire booking sub-contracted from one private hire operator to another (whether within the district or outside the district) must be carried out by drivers and vehicles licensed by the same council which has licensed the operator to whom the booking was sub-contracted.

For example:

• A private hire operator licensed in Leicester City can only dispatch a private hire vehicle and driver licensed by Leicester City to cover a booked job. If the job is sub-contacted to a private hire operator in Hinckley & Bosworth, then the Hinckley & Bosworth operator can only use licensed private hire drivers and vehicles to cover the job. A private hire operator may hold more than one private hire operator's licence

For example:

• A private hire operator licensed with Hinckley & Bosworth Borough Council can also hold an operator’s licence with Wolverhampton City Council or any other council in England and Wales outside of London
• Private hire bookings may be sub-contracted as shown above, so an operator primarily based in Hinckley may take a booking and effectively sub-contact the booking to themselves via their Wolverhampton operator's licence and then dispatch a licensed Wolverhampton private hire driver and vehicle who would be on their books to complete the booking, and vice versa

The only drawback with this loophole in the legislation is that it may cause friction with the local Hackney carriage trade so that must be a consideration.

A licensed hackney carriage may also carry out pre-booked work, please see the driving for app based companies page for further information.

Other requirements

If you wish to apply for your own licence to operate from premises which will be used as a booking office, you need to obtain planning permission from the council allowing use of the building.

Please remember to keep accurate records of journeys for auditing purposes with Her Majesty's Revenues and Customs (HMRC) and the council under Section 80, Local Government (Miscellaneous Provisions) Act 1976.

‎Tax checks

From 4 April 2022, new rules on tax checks apply that new and existing private hire operators will have to do when applying for an operator's licence.

Before you apply, please read new rules on tax checks from 4 April 2022

Last updated: ‎06/05/2025 16:32