In the United Kingdom, taxi firms are subject to a number of legal regulations. These regulations cover issues such as the licensing of drivers, the operation of vehicles, and the fares charged for journeys. Taxi firms must also comply with health and safety legislation, as well as equal opportunities laws. failure to comply with these regulations can result in legal issues for taxi firms with fines or even the suspension of a firm’s licence.
As a result, it is essential for taxi firms to ensure that they are up-to-date with all relevant legislation. Furthermore, they should also have adequate insurance cover in place in case of any accidents or injuries
Throughout the UK, taxi drivers and taxi vehicles are required to be licensed under various pieces of legislation. For guidance on the conditions, you and your vehicle must meet to obtain a license, contact Transport for London (TfL) or your local taxi licensing authority.
The Department for Infrastructure (formerly the Department of Environment) in Northern Ireland regulates taxis through the Passenger Transport Licensing Division (PTLD).
Driving and road traffic legislation must always be observed at all times – failure to do so could result in you losing your license and livelihood.
What licences does a taxi firm need?
A taxi firm, taxi owner, vehicle, and driver licensing system are in place. The licensing authority in your area will provide you with more information.
The number of licensed taxis is restricted by some licensing authorities, while other licensing authorities have no such restriction.
A background check is required as part of the licensing process for taxi drivers. The Driver and Vehicle Standards Agency administered the Taxi Drivers Assessment until December 2016, and many local authorities require applicants to complete the same type of training course.
Various standards must be met by vehicles, including safety, accessibility for people with disabilities, and emissions.
Local authorities in England (outside of London), Scotland, and Wales license taxis. Transport for London (TfL) licenses London taxis and private hires through London Taxi and Private Hire (LTPH). A taxi license is issued by the Driver and Vehicle Agency’s Passenger Transport Licensing Division (PTLD).
In case you want to hire another driver for a few shifts, make sure he or she has a license.
The Information Commissioner’s Office (ICO) may require registration or notification if your taxi is equipped with an internal security camera (CCTV). On the ICO website, you can find more information about CCTV, including a code of practice for users. Taxi and private hire vehicle CCTV guidelines are available on the TfL website.
Ofcom licences are required for businesses that plan to set up an office and hire several drivers, as well asuse a radio system to communicate between drivers and base. The Ofcom website has more information. As a self-employed driver, you don’t need your own license if you use a mobile radio unit to stay in touch with your taxi operator and use a mobile radio unit to stay in touch.
Equality Act
Taxis with wheelchair access (“designated vehicles”) in your area can be listed by your local authority. A taxi driver or private hire driver who refuses to transport wheelchair users or tries to charge them extra can face a fine of up to £1,000 if the local licensing authority lists their vehicles as being wheelchair accessible. As a result, they are now required to:
- Transport wheelchair users in their wheelchair
- Provide passengers in wheelchairs with appropriate assistance
- Charge wheelchair users the same as non-wheelchair users
Having a medical condition, yourself that makes providing physical assistance difficult can exempt you from this requirement. Get in touch with your licensing authority if you need assistance. Visit Gov.uk for more information.
Blind and partially sighted
Under the Equality Act 2010, guide dogs and other assistance dog owners are legally allowed access to businesses and premises. The law has a section directed specifically at taxi and private hire vehicles, stating that a driver must carry a disabled person and their dog also without any extra charge for the animal. The punishment for failing to follow the law is fairly severe.
Currently, any taxi driver who breaks the law could face a fine of up to £1000. Anyone with a private hire vehicle that refuses to accommodate a guide dog can also potentially have their license revoked.
Smoking bans
The UK-wide ban on smoking in the workplace also applies to taxis, and to both drivers and passengers. Taxi drivers cannot smoke in their vehicles, even if they own them and are riding alone. In your vehicle, you must display a ‘No Smoking’ sign.
Health & Safety, fire
Health and safety regulations at work and fire safety laws must be followed.
Employment legislation
Employment laws must be followed by anyone who employs employees. A number of areas are covered by employment legislation, including recruitment, employment contracts, pay, working hours, holidays, workplace policies, sickness, maternity, paternity, discrimination, discipline, grievances, the dismissal process, and disciplinary action.
Insurance for a taxi firm
Insurers and insurance brokers can explain what insurance cover you must have by law, and other coverages you should consider, once you explain exactly how your business will operate. The following might be included:
Check whether you can obtain insurance through a trade association if you’re planning to join one. Taxi drivers in the London Taxi Drivers Association (LTDA) receive discounted insurance as a benefit of membership. The LTDA website has more information about this and other member benefits.
Conclusion
Taxi firms face a number of legal issues daily, these are due to regulation as well as being a customer facing business, as well as ensuring that any drivers they employ are fully vetted with an extended background check. Taxi businesses need to ensure that they hold the correct insurance for their vehicles and the trade that they offer. Drives must also be mind full of legislation customers with disabilities as not to discriminate against fair paying passengers, failure to do so may risk future legal issues for the taxi firm.
Lee Jones is a seasoned Business Finance Specialist with over two decades of invaluable experience in the financial sector. With a keen eye for market trends and a passion for helping businesses thrive, Lee has become a trusted advisor to countless organizations seeking to navigate the complexities of finance.