Coronavirus (COVID-19) advice

Taxi and Private Hire Vehicle Driver and Operator Support Fund 2021-22

Updated 28 March 2022

On 7 January 2022 the Scottish Government announced an additional £28 million in funding specifically to support the taxi and private hire vehicle trade which had experienced a significant reduction in demand as a result of measures introduced to control the spread of the Omicron variant. This fund is to assist eligible taxi or private hire drivers and private hire and taxi licence holders in Scotland with fixed costs.

Changes have now been made to the eligibility criteria. The primary change is that eligibility no longer requires drivers and operators to have received prior support from the Scottish Government through the support schemes targeted towards the sector launched in March 2021 and June 2021.

Please read the information below carefully and check you have all the documents you need before you submit a self-declaration form to the fund.

If you have already applied in 2022 for a top up payment, then you should not make another application as existing applications will be assessed against the new criteria.

This fund closed at 5pm on 25 March 2022. Any declarations arriving after that will not be eligible for a grant.

Drivers

Eligible drivers will receive a payment of £750.

To be eligible for a grant award through this fund, taxi and private hire drivers must:

  • have held a Taxi and/or Private Hire Vehicle Driver licence continuously for the period since 9 December 2021 and which remains current and valid as at 31 January 2022;
  • have been working or available for work as a taxi or private hire vehicle driver since 9 December 2021; and
  • have experienced loss of income in December 2021 and incurred overhead costs and expenses. Those who have held a licence since December 2019 are asked to declare that their loss of income for December 2021 equates to at least 50% of turnover compared to December 2019.

If you have already received a payment in 2022 you may not claim a further payment.

You will be required to upload a bank statement dated within the last 3 months which clearly shows your name, address, sort code and account number and the name of your bank. This should be a business account where possible or the personal account which you use for your business.

Operators

Eligible operators will receive a payment based upon the number of vehicle licences held as follows:

  • One vehicle - a single award of £750
  • 2 to 9 vehicles - a single award of £3,000 for all vehicle eligibility
  • 10 to 49 vehicles - a single award of £7,000 for all vehicle eligibility.
  • 50 or more vehicles - a single award of £15,000 for all vehicle eligibility.

To be eligible for a grant through this fund operators must:

  • be a company, partnership, sole trader or trust holding a valid taxi or private hire vehicle licence as at 31 January 2022; one claim per licenced vehicle which was active in December 2021 (self-certification), generally and in particular where a licence is held jointly by a number of individuals
  • have experienced loss of income in December 2021 and incurred overhead costs and expenses. Those who have held vehicle licences since before December 2019 are asked to declare that their loss of income for December 2021 equates to at least 50% of turnover compared to December 2019. The calculation for projected loss of revenue on new vehicles should be predicated on actual losses experienced for vehicles that you have had since December 2019
  • For operators that have held vehicle licences since before March 2020, have reduced the fee payable by any self-employed drivers that rent licenced vehicles in recognition of the reduced demand for taxis/private hire vehicles and the associated impact on their capacity to generate income as a result (confirmed by self-certification).

Please note that grant income received by an operator business is taxable and must be included in the tax return for the business. Payments will fall into the 2021/22 tax year (whereas payments made under the first tranche fall into the 2020/21 tax year). Unincorporated businesses will be taxed when they receive the grant income.

Eligibility criteria which apply to both drivers and operators:

  • You must not have breached wider COVID regulations/requirements;
  • You must not have connections to tax havens, as set out in the Coronavirus (Scotland) (No.2) Act 2020;
  • You may be required to declare all previous support received from UK or Scottish or Local Government support schemes to provide local authorities with the necessary information to ensure payments are made correctly and compliant with EC State Aid limits/UK Government subsidy control policies.

Recipients who are in receipt of benefits should note that grant income through the Taxi and Private Hire Driver and Operator Support Fund will be regarded as capital by the Department for Work and Pensions. Recipients who are in receipt of working age benefits must declare the grant to the Department of Work and Pensions in order to have it taken into account when calculating their benefit entitlements.