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£80 trick to avoid paying C-Charge
David Williams, Motoring Editor5 Nov 2007
A fraud in which drivers register their car as a minicab to beat the congestion charge is being investigated by transport bosses.
Motorists are believed to be exploiting a loophole that lets them declare that their car is a cab - exempting them from the £8-a-day toll.
The move costs £82 in advance, followed by a £27-a-year licence fee - creating a potential saving of £1,591 a year over the cost of an annual pass to go in and out of the congestion zone.
Minicab drivers are supposed to pay the charge if they are not carrying fares, but it is almost impossible for Transport for London to check this.
TfL's investigation was prompted by a string of expensive vehicles being registered as cabs in the past year, including sportscars such as Mercedes SLs, Porsche Cayennes and an Aston Martin DB7. Also put down for the scheme were
two £77,000 Maserati Quattroportes, 17 £117,500 Bentley Continentals and three Maybach 62s - which cost £300,000.
There are claims of builders and pickup truck firms registering their vehicles.
The London Private Hire Car Association said that at present it is not necessary to be a minicab operator, or even a licensed minicab driver, to get a vehicle licensed as a cab. Owners must show a valid MoT certificate but no checks are made on the suitability of the car for cab work.
Steve Wright, the association's chairman, said: "We've had concerns for some time. There's no requirement on someone applying to be licensed as a cab to show who they work for. This should be looked at. It is not good for the industry if people abuse the system.
"There are not tens of thousands of illegitimate cabs, but the full extent is not known."
Green motoring experts warned plans to impose a £25-a-day congestion charge on "gas guzzlers" would lead to false registrations soaring.
The change is expected to be implemented in February.
Jay Nagley, of cleangreencars.co.uk, said: "It's an incredible wheeze. Stand by for more Jaguars and Rolls-Royces to be licensed as cabs. Just don't count on one whisking you home."
A TfL spokesman said a small number of expensive cars were registered legally by hotels and chauffeuring firms. But he added: "We are taking this very seriously. We call for anybody who has evidence to get in touch." He said regular checks were made and illegitimate users would be thrown off the register.
Reader views (5)
What I would like to know is if it is legitimate for me to register my car (Skoda Octavia) as a minicab so I can operate my courier business. I have no intention to pick up passengers but I have a business sourcing from Victoria and it would be of great benefit to me if I could drive through the congestion zone as a minicab when the destinations are in East Anglia and Essex. At the moment I have to use a train to get out west of the capital and drive around London adding many miles to the journey.
- M Lucas, Feltham, UK, 10/08/2008 02:31
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More to the point, why do the people tolerate being subjected to legalized highway robbery? It's noteworthy that the first line of this article judges the evasion a fraud, when it could be argued here that the greater fraud is waged against the drivers.
- Sloppy Carl, London, UK, 06/11/2007 14:36
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TFL are only interested in collecting revenue for the Mayor the easy way ie via CCTV. This loophole has been brought to their attention many times without any action being taken.
- Lee Patterson, London. UK., 06/11/2007 01:17
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The answer is simple, legitimate cab drivers should have a PCO licence. If the person getting their vehicle registered was asked to produce their licence at the time of the test it would remove any chance of fraud.
- Neville Nixon, London, 05/11/2007 22:40
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Why don't TFL automatically forward the details of anyone registering as a mini cab to the Inland Revenue?
- Bob, London, UK, 05/11/2007 12:53
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