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Taxi drivers in Northern Ireland now have to show that they are registered to pay tax when renewing their licences.

The requirement was announced in 2021 and has been in place in England and Wales since April 2022.

HMRC said the move was "to promote tax compliance within the industry and make it fairer for the vast majority of drivers who already pay their taxes correctly".

The DFI will administer the process.

Marc Gill, director of individuals and small business compliance, HMRC, said: "While most taxi drivers in Northern Ireland pay their taxes accurately and on time, we want to level the playing field and tackle the small minority who don't.

"The hidden economy is estimated to cost the UK government £2bn in unpaid taxes, which deprives funds for the vital public services we all rely on."

He said by linking tax compliance to licence renewal, the government hoped to encourage drivers to fulfil their tax obligations.

In a statement, the Department for Infrastructure said: "From 2 October 2023, taxi drivers applying to renew their taxi driver licence (TDL) will have to provide a tax code before their application will be accepted by the Driver and Vehicle Agency (DVA).

"The DVA has notified all existing taxi drivers of these new requirements and, from June 2023, this information has been included in all TDL renewal reminders."