Taxi and private hire licence fees: examples from UK councils

Every council sets its own taxi and private hire licence fees, so the same small firm pays very different amounts depending on where it's based. This page puts the published fees from nine licensing authorities side by side, for operator, driver and vehicle licences, with a link to each fee page. Fees change, so check your own council's page before you budget.

How much does a private hire operator licence cost?

For a small firm, a five-year private hire operator licence costs between £429 in Cardiff and £2,790 in Manchester among the eight authorities below that issue one. Glasgow is in the table for comparison, because Scotland licenses booking offices instead. Every figure comes from the authority's own fee page, checked in October 2026.

Where a council shows a new and a renewal price, the table gives the new one. Cardiff, for example, charges £350 to renew a five-year operator licence against £429 for a new one, and Birmingham £1,277 against £1,329 for a small operator.

Why do licence fees differ so much between councils?

Councils charge what it costs them to license, and those costs differ. Section 70 of the Local Government (Miscellaneous Provisions) Act 1976 lets a council set vehicle and operator fees to cover the reasonable cost of vehicle inspections, of providing hackney carriage stands, and other reasonable administrative costs of controlling and supervising the trade.

Driver fees sit under a different rule. Section 53(2) lets a council charge a driver what it considers reasonable to recover the costs of issuing and administering the licence.

A council can't change vehicle or operator fees quietly. Under section 70 it has to publish the proposed change in at least one local newspaper and allow at least 28 days for objections. Transport for London adds that all its licence fee income must, by law, be spent on taxi and private hire licensing and compliance.

The law ties fees to costs, so compare what each council includes in its fee before you compare the totals.

Do bigger fleets pay more for an operator licence?

In four of the eight, yes. Bristol, Cardiff, Liverpool and Manchester charge the same operator fee whatever your size. Sheffield, Leeds, Birmingham and London charge by fleet:

Watch the step from one band to the next. In London, going from 10 to 11 vehicles takes the fee from £2,000 to £6,000, and TfL's 21 to 50 band costs £19,000. TfL sets the band by the number of vehicles available to you at any one time over the licence, and if you outgrow it you apply for a new licence, with a possible part refund on the old one.

In Birmingham the step is sharper still: a small operator (1 to 5 vehicles) pays £1,329 for a new five-year licence, and a standard operator pays £4,435.

How much does a taxi driver licence cost?

Among the councils outside London that publish a three-year price, a new driver licence costs from £163 in Cardiff to £277 in Birmingham. TfL's three-year London private hire driver licence costs more: its application and grant fees add up to £343.

The licence fee is only part of it. Expect these on top, depending on the council:

• An enhanced DBS check. TfL lists £56.42 including ID checks, Liverpool £78.99 including online ID verification, Leeds £70 and Sheffield and Cardiff £41.
• Knowledge or skills tests. Bristol charges £69, Liverpool £70, Manchester £74 for its knowledge test and £42 for a skills assessment, and Sheffield £87. TfL charges £40 each for its SERU and topographical assessments.
• Training. Leeds charges £55 for its customer care course, £25 for an English comprehension test and £10 for safeguarding awareness training.
• A medical. TfL says the fee is set by the examining doctor.

If you help new drivers with these costs, budget for the full list, not just the licence. The checks themselves are explained in driver licence requirements.

How much does a private hire vehicle licence cost?

A new private hire vehicle licence costs from £92 a year in Cardiff to £251 in Bristol, plus inspection fees in some places. A private hire vehicle licence in England and Wales lasts no longer than one year, under section 48 of the 1976 Act, so this is a yearly cost per car.

Inspection fees can matter more than the licence. Manchester charges £60 a year for a car under three years old, £120 for a car between three and eight years old and £180 for a car eight years or older, on top of the £148 application fee. Leeds charges a £110 age criteria inspection at renewal where it applies, and Sheffield a £54 compliance test. Glasgow's private hire car licence is £517 but lasts three years.

Older cars cost more to keep licensed, so the test fees belong in your vehicle choice: see choosing vehicles for a taxi fleet.

Is a one-year or a five-year operator licence better value?

Per year, the five-year licence is cheaper at every council here that offers both. Bristol's £1,058 five-year licence works out at £211.60 a year against £356 for one year. Sheffield's works out at £502 a year against £531, Birmingham's small operator licence at £265.80 a year against £501, and Cardiff's at £85.80 a year against £100.

The longer licence doesn't end the yearly checks. Bristol requires a new basic DBS certificate every year on a licence longer than one year, and Sheffield asks for a basic DBS certificate every year. A basic check costs £20 on GOV.UK.

If you're new, a shorter first licence can still make sense while you find out whether the business works. Ask your council what it refunds if you surrender a licence early, because the rules differ: Liverpool, for example, doesn't refund a driver's fees if an application is withdrawn or refused.

What else do you pay to start an operator business?

The licence is the smallest of your start-up costs. Alongside it, budget for:

1. The data protection fee. The ICO's fee has been £52 on tier 1 and £78 on tier 2 since 17 February 2025.
2. A limited company, if you form one. Companies House charges £100 to incorporate online.
3. Planning advice. Sheffield asks for planning permission or a letter saying you don't need it, and charges for its pre-application service.
4. Insurance. Sheffield asks for public liability of at least £2,000,000 where the public use your premises.
5. Software. Dispatch AI is booking and dispatch software for taxi and private hire firms, and its plans are on the Dispatch AI prices page.

The full start-up budget is in the cost to start a taxi business, and the application itself in how to get a private hire operator licence.

How do fees work in Scotland and Northern Ireland?

Scotland has no operator licence in the English sense. Under the Civic Government (Scotland) Act 1982 and a 2009 order, premises taking bookings for 4 or more taxis or private hire cars need a booking office licence, which costs £383 in Glasgow. With 3 or fewer vehicles you don't need one.

In Northern Ireland, the Taxis Act (Northern Ireland) 2008 requires an operator's licence from the Driver and Vehicle Agency. The application fee is £140, and nidirect says the grant fee depends on the type and length of licence and the number of vehicles. London's rules are in starting a private hire firm in London.