What you describe is perfectly legal. Direct the police to the terms of Section 21(2)(a) of the Civic Government (Sc) Act 1982, which indicates that it is not an offence. The ignorance of the cops to the extent of their powers is, sadly, not a new phenomenon.

21 Offences.

(1)If any person—
(a)operates, or permits the operation of, a taxi within an area in respect of which its operation requires to be but is not licensed or the driver requires to be but is not licensed, or
(b)picks up passengers in, or permits passengers to be picked up by, a private hire car within an area in respect of which its operation requires to be but is not licensed or the driver requires to be but is not licensed,that person shall be guilty of an offence and liable, on summary conviction, to a fine not exceeding [F24level 4 on the standard scale].
(2)Subsection (1) above does not apply to the operation of a taxi or private hire car within an area in respect of which its operation or its driver is not licensed if the request for its hiring was received by its driver [F25(otherwise than in a public place from the person to be conveyed in it, or a person acting on his behalf, for a journey beginning there and then)] whilst—
(a)in the area or in that part thereof in respect of which its operation and its driver are licensed;
(b)engaged on hire on a journey which began in that area or part or will end there; or
(c)returning to that area or part immediately following completion of a journey on hire.

If someone calls from a neighbouring area for a taxi to be taking to another area, not our own, can we take the hire legally ?

Over the last few weeks, the police have been stopping our cars from picking up outside of the area (phoned hires) unless the hire either starts or ends within our licensing area.

Over a year ago the company i work for took over another company which most of the hires were in the the other area and are charged at a lower rate than the meter.

I know that cars cannot sit in the other area waiting for a called hire but can the Police or LA stop the cars from picking up the hire if the call was picked up inside the area where the car and driver are licensed.

This has not yet happened to myself but approx 20 drivers have been stopped and charged over the last 2 weeks. The drivers have been told that the council have put in a byelaw that states they can only pick up a hire that either starts or ends in their own LA, i have not seen this either, im only asking the question as none of this seems to be legit (sounds as if someone has bee in the bonnet and trying to make the rules up as they go on). What do they expect us to do? tell someone to get out the car and use someone else or ohhh you cant change your mind you need to go to your original stated destination.

Now that's an interesting development. What are the details of the charge?
Is it under the CGSA or this byelaw?

I think your right, someone is making it up as they go along.

This will make you laugh they have been told they are getting charged but haven't been told what with.

If a booking office, then yes you probably can. If you are taking bookings for more than 3 licensed vehicles, you will need a booking office licence from the area you are located in. All conditions attached to that licence must be adhered to. I can't give a precise answer without knowing what the local conditions are.

If you are a driver, then the answer is located in the sections 21(1) and (2) of the CGSA as quoted above.
21(1) says a Taxi or PH licence and driver licence both licensed by the same LA who's area the hire is in, is needed.
This would normally mean the answer is no.

21(2) amends this, giving an exemption from (1) under certain circumstances.

It basically depends on where the car is and what it is doing at the time the driver accepts the hire.
They must be either:

(a)in the area or in that part thereof in respect of which its operation and its driver are licensed;
Within it's own licensed area

(b)engaged on hire on a journey which began in that area or part or will end there; or
On a hire which begins or ends in the same area where the booking is to be picked up.

(c)returning to that area or part immediately following completion of a journey on hire.
Returning to own licensed area after dropping off in the area where the booking is to be picked up.

So the answer is no, unless 22(2)(a),(b) or(c) applies.

The whole thing is a dog's breakfast BTW.

If a booking office, then yes you probably can. If you are taking bookings for more than 3 licensed vehicles, you will need a booking office licence from the area you are located in. All conditions attached to that licence must be adhered to. I can't give a precise answer without knowing what the local conditions are.

If you are a driver, then the answer is located in the sections 21(1) and (2) of the CGSA as quoted above.
21(1) says a Taxi or PH licence and driver licence both licensed by the same LA who's area the hire is in, is needed.
This would normally mean the answer is no.

21(2) amends this, giving an exemption from (1) under certain circumstances.

It basically depends on where the car is and what it is doing at the time the driver accepts the hire.
They must be either:

(a)in the area or in that part thereof in respect of which its operation and its driver are licensed;
Within it's own licensed area

(b)engaged on hire on a journey which began in that area or part or will end there; or
On a hire which begins or ends in the same area where the booking is to be picked up.

(c)returning to that area or part immediately following completion of a journey on hire.
Returning to own licensed area after dropping off in the area where the booking is to be picked up.

So the answer is no, unless 22(2)(a),(b) or(c) applies.

The whole thing is a dog's breakfast BTW.

Perhaps you could explain it better? It is double Dutch to most people after all

Who the f cares??? just do the jobs and stop acting like a bunch of fannies.