Private hire licence: driver, vehicle and operator explained
Written by Sam Allcock · Last updated 23 August 2026 · Facts checked against GOV.UK guidance on the date above
A private hire vehicle (PHV) - also called a minicab - can only be booked in advance, and running one legally needs three separate licences: a driver licence, a vehicle licence, and an operator licence for whoever takes the booking, all issued by the same council or, in London, by Transport for London (GOV.UK, 23 August 2026).
That's different from a taxi (hackney carriage), which can be hailed in the street or picked up at a rank and doesn't need an operator licence at all.
This guide focuses on what makes private hire specifically different - the operator licence, the pre-booking rule, and how the three licences fit together; for the driver application process step by step, see our how to become a taxi driver guide, and for the wider licensing system, see our taxi and private hire hub.
This is general information based on GOV.UK guidance, not professional or legal advice, and it doesn't replace checking the exact requirements with your own licensing authority.
What actually makes a vehicle "private hire" rather than a taxi?
A private hire vehicle can only be pre-booked through a licensed operator - it's not allowed to be hailed in the street or wait at a taxi rank, and that one rule is what legally separates it from a taxi (GOV.UK, 23 August 2026).
| Taxi (hackney carriage) | Private hire vehicle (PHV) | |
|---|---|---|
| Can be hailed in the street | Yes | No |
| Can wait at a taxi rank | Yes | No |
| Must be pre-booked | Optional | Always |
| Needs an operator licence | No | Yes |
This is also why the operator licence exists at all - it's the accountability layer that makes sure every PHV booking is traceable back to a licensed business, since the vehicle itself can't simply pick up a passenger who flags it down.
What is a private hire operator licence?
An operator licence is required by anyone who takes PHV bookings or supplies PHV drivers for payment, and operating without one is an offence you can be prosecuted for (GOV.UK, 23 August 2026).
You need your own operator licence if you're running a minicab firm or booking service, or you need to work for, or through, a business that already holds one - you can't simply supply PHV drivers or take fares informally.
A PHV operator licence lasts a maximum of 5 years, longer than the usual 3-year driver licence, though your authority may choose to issue it for a shorter period (GOV.UK, 23 August 2026).
Applications can be refused if you don't meet the "fit and proper person" test or won't accept the licence conditions set, but there's a right of appeal if that happens (GOV.UK, 23 August 2026).
What is a private hire vehicle licence?
Every vehicle used as a PHV has to be individually licensed by the same authority as the driver and operator, regardless of who owns it (GOV.UK, 23 August 2026).
GOV.UK's own guidance on vehicle licences is limited on specifics like age limits, testing and insurance, which confirms these standards are set by your own licensing authority rather than nationally - check your council's or TfL's current vehicle standards directly before buying or converting a car for PHV use.
Different rules apply if you're licensing a vehicle in Northern Ireland or Scotland, so use the guidance for your own part of the UK.
What is a private hire driver licence?
A PHV driver licence is the personal licence that lets you drive a private hire vehicle for hire, and it's applied for and issued separately from the vehicle and operator licences, even though all three must come from the same authority (GOV.UK, 23 August 2026).
The eligibility basics are the same as for a taxi driver licence - right to work, usually 12 months' driving experience, a "fit and proper person" assessment and an enhanced DBS check - with many authorities adding a medical check, knowledge test and driving assessment on top.
For the full step-by-step process, timescales and what to expect, see our how to become a taxi driver guide, which covers the driver licence application in detail.
Do the driver, vehicle and operator licences have to come from the same place?
Yes - your PHV driver licence, vehicle licence and operator licence must all be issued by the same licensing authority, so you can't combine, for example, a council-issued driver licence with a different council's vehicle licence (GOV.UK, 23 August 2026).
In practice this means choosing which authority you'll be licensed by, typically wherever you'll mainly be working, and applying to that one authority for all three, rather than shopping between councils for each licence separately.
What does it cost to set up as private hire?
There's no national fee for any of the three PHV licences - GOV.UK doesn't publish one, because your council or TfL sets its own fees for the driver, vehicle and operator licences (GOV.UK, 23 August 2026).
The free official route is always to check the fee directly with your own council or TfL before you apply. Read GOV.UK's official operator licence guidance →
✓ Checked against GOV.UK, 23 August 2026 - no national fee is published for any of the three PHV licences.
A council-by-council fee lookup for all three licences is coming soon on apply for licence - it isn't live yet, so for now check your own authority's published fee schedule directly.
How do you apply for the three licences?
You apply to your chosen licensing authority for each licence separately, though it will usually process a first-time application for driver, vehicle and operator together if you're setting up from scratch (GOV.UK, 23 August 2026).
- Decide which authority you'll be licensed by - your council, or TfL for London.
- Apply for your driver licence - see our how to become a taxi driver guide for the full process.
- Apply for your vehicle licence for each car you'll use, meeting your authority's vehicle standards.
- Apply for your operator licence if you'll be taking bookings or supplying drivers yourself, rather than driving for an existing licensed operator.
Frequently asked questions
Can I drive a private hire vehicle without an operator licence?
Yes, if you're driving for a business that already holds its own operator licence - you only need your own operator licence if you're taking bookings or supplying drivers yourself.
Is a minicab the same as a private hire vehicle?
Yes - "minicab" is a common name for a private hire vehicle (PHV); they're the same thing in law.
How long does a private hire operator licence last?
Up to a maximum of 5 years, though your authority can choose to issue it for less (GOV.UK, 23 August 2026).
Can a private hire vehicle pick up a passenger who flags it down?
No - a PHV can only be used for pre-booked journeys; picking up a passenger who hails it in the street is what legally makes a vehicle a taxi, not a PHV.
Do I need three separate applications for driver, vehicle and operator?
Yes, they're three separate licences, though many authorities let you apply for all three together if you're setting up as a new operator with your own vehicle and drivers.
apply for licence is an independent guide and is not affiliated with, endorsed by, or connected to GOV.UK, any local council, Transport for London or any government body. This page is general information, not legal or professional advice - for anything specific to your situation, contact your own licensing authority directly.