How do I start a taxi driver UK?

You'll need to:
  1. complete a driving skills assessment.
  2. have a full UK or EU driving licence, held for at least 12 months, or 3 years if working in London.
  3. pass background checks.
  4. pass a medical check.
  5. be over 18 but over 21 in some areas, including London.




To become a licensed taxi driver in the UK, you must navigate a multi-step process regulated by your local council (or Transport for London if in the capital). First, you must have held a full UK or EU driving license for at least 12 months (often 3 years in some areas). You will need to apply for a Private Hire Vehicle (PHV) license or a Hackney Carriage license. The process involves an enhanced Disclosure and Barring Service (DBS) check to ensure you have no relevant criminal record, and a specialized medical examination to confirm you meet Group 2 driver standards. Most councils also require you to pass a "Knowledge" test, which evaluates your familiarity with local geography and landmarks, and a "DVSA" taxi driving assessment. In London, "The Knowledge" for a black cab license is famously difficult and can take 3 to 4 years to master. You must also ensure your vehicle meets local standards and is properly insured for "hire and reward." Finally, you will need to pay various licensing fees, which can total several hundred pounds. In 2026, many councils also require new drivers to complete "Safeguarding" training to recognize and report signs of exploitation or human trafficking.

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You may choose to purchase new or used vehicles or lease your vehicles on a monthly basis. The costs can vary considerably, depending on the number of vehicles you require. You can expect to pay between £10,000 and £60,000 per car, depending on the age, make and specification.

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Do Make Money as a Taxi Driver in the UK a Good Living? On average, taxi drivers in the United Kingdom earn between £20,000 and £30,000 per year. On average, taxi drivers in the United Kingdom earn between £9 and £15 per hour. However, the rate may increase on certain days, such as bank holidays and Saturday evenings.

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According to the National Careers Service, an experienced taxi driver working around 40 hours a week might expect to make around £30,000 per year. As a one-person business, it's largely down to you. If you're prepared to put in the hours and work at anti-social times, your profits could soar.

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You need a licence to drive a taxi or private hire vehicle ( PHV ) in England and Wales. A PHV can only be pre-booked. Taxis can also be hired at a rank or hailed in the street. You can be prosecuted if you work as a taxi or PHV driver without a driver licence.

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If your vehicle is being used as a taxi or private hire vehicle ( PHV ) you need to get it licensed. You can be prosecuted if you drive a vehicle as a taxi or PHV without a vehicle licence. A PHV can only be pre-booked. Taxis can also be hired at a rank or hailed in the street.

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Research has shown that taxi drivers are at risk for numerous health concerns, such as low back and leg pain, linked to their highly sedentary occupation, long work hours and stressors related to the job (e.g. low income, safety threats).

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Post Covid, the Licensed Private Car Hire Association (LPHCA) estimates that the UK's taxi and private hire industry is suffering a shortfall of 160,000 drivers – down from the 300,000-strong workforce pre-pandemic.

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But for the most part, a cab company owns the vehicle. They lease it to their drivers who in turn get to keep 100% of the fares and tips (some companies charge less for the lease, but retain a portion of the fares).

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It's easier to handle and manage cash compared to other modes of payment. Cash payments are immediate and there is no need to wait for the payment to be processed. Some taxi drivers may prefer cash payments to avoid paying fees associated with card payments.

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Addison Lee becomes London's largest taxi firm with ComCab acquisition
  • By Matt de Prez.
  • 17 June 2021.


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With the cost of owning a car out of reach for many today, ride sharing gives commuters an alternative. And a handful of U.S. cities, self-driving taxis are getting the green light to pick up passengers. Several companies including Waymo, Cruise and Motional are touting driverless taxis as the way of the future.

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The number of trips made by services like Lyft and Uber has jumped to 9 million per month, up from 2.6 million in 2015, according to a report he prepared for his firm, Schaller Consulting. Over the same period, yellow cab rides have declined by more than two million.

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With recent innovations in technology and ride-sharing, the demise of taxi driving is inevitable because ride-sharing receives major support and will not fail unless Uber or Lyft themselves find a way to limit driving services.

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Taxi drivers typically site that the ridesharing services are not as safe and don't have the same types of standards and insurance that taxi drivers must carry. They often argue that these apps get around the taxi laws by offering technology that blurs the line between traditional taxi services and ridesharing apps.

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Private hire vehicles must never stop or wait in taxi ranks, or the driver will be subject to a Penalty Charge Notice and potentially licensing action.

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