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Guide to becoming a taxi driver

9.12.24

By Alan Boswell Group

a busy road with a first time taxi driver driving a taxi

Taxi driving can be a good source of extra income while allowing you to work flexible hours. However, despite the number of taxi drivers increasing between 2020 and 2023, there are still fewer than before the pandemic.  

The shortage has led to long waiting times, while some travellers find it hard to book a taxi altogether. Plus, with more than half of UK adults regularly commuting or travelling between activities, demand for taxis isn’t falling, making driving a cab even more appealing.  

Are all taxis the same? 

No, all taxis aren’t the same. Hackney carriage is the official name for taxis that can be hailed in the street and pick up passengers from taxi ranks. They can also be pre-booked. In contrast, private hire vehicles (PHVs) can only be pre-booked.  

It’s an important difference in the world of taxi licensing, so it’s worth keeping in mind if you’re considering taxi driving and applying for licences later on.  

You can find out more about the difference between private and public hire taxis in our guide.  

What do you need to become a taxi driver? 

There are two options you can take when becoming a taxi driver: 

Apply directly  

To set yourself up as a taxi driver, you’ll need a taxi driver’s licence. You can then apply to your local taxi licensing authority, which is usually your local council.  

If you want to drive a taxi in London, you’ll need to apply to Transport for London instead.  

Complete a college course 

You don’t need to go to college to become a taxi driver; however, if you choose to, you’ll need to meet the entry requirements (typically two or more GCSEs between grades 9-3 (or A*-D). Courses available include: 

  • Level 2 certificate in road passenger vehicle driving  

  • Level 2 certificate in introduction to the role of the professional taxi and private hire driver 

You’ll still need to apply for a taxi driver’s licence when you finish your course.  

 

What licences do I need to be a taxi driver? 

If you want to drive a taxi, you’ll need all the appropriate licences: 

  • A taxi driver’s licence  

  • A vehicle licence if you’re using your own car 

  • An operator licence if you’re driving a private hire vehicle (PHV) – if you are working for a taxi firm then they should already have this 

All your licences will need to come from the same licensing authority. This will either be your local council or Transport for London. 

How do I get a taxi driver’s licence? 

To apply for a taxi driver’s licence, you’ll need: 

  • a full British, Northern Ireland, or EU driving licence; 

  • to have held your full driving licence for at least 12 months; 

  • to pass a ‘fit and proper person’ test which checks your background. 

Different authorities have different rules, so there could be other requirements and criteria you need to meet. For example, you may need to pass a criminal record check (DBS check), and if you want to be a taxi driver in London, you’ll need to be over 21.  

Taxi driver licences are usually valid for three years.  

Do taxi drivers have to pass a test? 

In some cases, you’ll also need to take some tests. Again, the specific tests will vary depending on the licensing authority and where you work. Tests could include a medical, driving, or knowledge test.  

How do I get a vehicle licence? 

In addition to your taxi driver’s licence, you’ll need a vehicle licence to use your own car as a taxi or private hire vehicle.   

If you’re using a different car, check that it has a valid vehicle licence.  

How do I get an operator’s licence? 

You only need an operator’s licence if you’re driving a private hire vehicle (one that has to be pre-booked). If you’re working for a minicab firm, you won’t need to arrange your own operator’s licence (but the cab company must have one).  

Operator licences are valid for five years.  

How long does it take to become a taxi driver?  

This depends on the route you take and how long it takes for your licensing authority to process your application.  

Typically, it takes between 12 and 16 weeks to get all the necessary licences and checks back. If you decide to go to college, you’ll need to consider the time it takes to finish your courses.  

If you’re applying to become a taxi driver in London, it can take more than 16 weeks.  

How much does it cost to apply for taxi licences? 

Cost varies between licensing authorities. Some will also have different fees depending on whether you’re applying for licences for the first time or are renewing.  

You’ll also need to factor in the cost for any tests you need to take, as well as DBS checks.  

As a rough guide, expect to spend upwards of £500 for all the appropriate licences and checks. 

How much does a PCO licence cost? 

PCO stands for public carriage office. PCO licences allow you to drive private hire vehicles (which can only be pre-booked). Cost will depend on the licensing authority. 

Should I join a taxi association? 

Most areas have a taxi association which provides a network for local taxi drivers. You’re not obliged to join an association, but they can be helpful groups to join for the support they could give.  

Some associations are more active than others and may act as a go-between for licensing authorities and drivers. Bigger associations may even lobby to improve working conditions, safety, and legislation.  

Associations may charge a fee to join, but this will depend on the group. 

Do taxi drivers need insurance? 

Yes. All taxi drivers need suitable insurance that covers how they operate (Hackney carriage or private hire). Standard car insurance is not suitable for a taxi. 

Taxi insurance is available in three levels of cover (third party only, third party fire and theft, comprehensive). Policies also allow you to carry people in exchange for payment. 

Most insurers will also give you the choice of adding extras, such as public liability cover, breakdown cover, legal expenses, and extended liability cover. 

The cost of taxi insurance will depend on what’s included in your policy, and your circumstances (such as age, mileage, passenger capacity, location and driving history).  

To take out a taxi insurance policy, your insurer will normally ask to see: 

  • Taxi licence 

  • Vehicle licence  

  • V5 logbooks 

  • Signed proposal form 

  • DVLA check code 

  • Driving licence 

  • Proof of no claims (if applicable) 

Taxi driver insurance from Alan Boswell Group

Whether you’re driving a Hackney carriage or private hire vehicle, you must have taxi insurance. If not, you could be fined, and your licence taken away.  

Policies can be flexible, allowing you to drive your vehicle for both personal use and as a taxi.  

For more information on how we can help you with any of your taxi insurance needs, contact a member of our team.

Speak to us:  01603 482882

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