Licensing is what separates a taxi from an ordinary car, and it is the part of a purchase most often misunderstood. This is a general overview to help you ask the right questions. It is not legal advice, and the details vary from council to council — always confirm with the licensing authority where you intend to work.
Three Licences, Not One
In most of the country outside London, taxi and private hire licensing rests on three separate permissions:
- A vehicle licence (the plate) attached to the specific vehicle.
- A driver licence (the badge) held by the individual, following background and medical checks.
- For private hire, an operator licence held by the business that takes the bookings.
All three usually have to be in place for private hire work; a Hackney driver working for themselves needs the vehicle and driver licences. Because the permissions are separate, buying a plated vehicle does not make you a licensed driver, and holding a badge does not license a vehicle you buy.
The Council Has the Final Say
Taxi licensing is administered locally. Each council sets its own vehicle standards — age limits, emissions requirements, accessibility rules, livery and signage — and runs its own compliance inspections. A vehicle that is perfectly licensable in one district may be too old or the wrong specification in the next. This is why the licensing question has to be answered by your council before you buy, not by the seller.
Plates and Their Transfer
A vehicle plate is issued for a fixed period and has to be renewed, usually with an inspection each time. When a plated vehicle is sold, the plate does not automatically pass to the buyer; the authority has to be involved, and in some areas plate numbers are capped and valuable in their own right. Establish exactly what happens to the plate on sale, and never pay a premium for "a plated cab" without confirming the plate can actually continue.
London Is Different
London has its own system, administered centrally rather than by a borough council, with distinct rules for licensed taxis (the famous Knowledge for drivers) and for private hire. If you are buying or working in the capital, treat London licensing as a separate subject and start with the official guidance from Transport for London.
Drivers: Checks, the Knowledge and Renewals
Licensing a driver is a separate process from licensing a vehicle, and it is not a formality. Applicants typically face an enhanced background check, a medical assessment to a set standard, and often a local-knowledge or safeguarding test; in London, licensed-taxi drivers must famously pass the Knowledge of London. These requirements exist to protect passengers, and they take time and money to satisfy — worth planning for if you are entering the trade rather than simply changing vehicles.
None of these permissions is permanent. Vehicle plates, driver badges and operator licences all run for fixed terms and must be renewed, usually with fresh checks and, for vehicles, another inspection. Missing a renewal can take a cab off the road overnight, so keep a diary of every expiry date and start each renewal well before its deadline.
Where to Get the Official Detail
Because the rules are local and change over time, always work from primary sources. The GOV.UK guide to being a taxi or private hire driver is the national starting point, and your own council's licensing pages carry the standards that actually apply to your vehicle. Once the licensing is clear, our buyer's guide and inspection checklist cover the vehicle itself.