It is well known that HMRC has access to thousands of different data sources to ensure that individuals pay the right amount of tax. An interesting development is that of taxi drivers and HMRC have been using taxi-booking apps ...
Where there is undeclared income, HMRC usually asks a taxpayer to sign and return a certificate of tax position and make a voluntary disclosure online. There is no legal obligation to complete the certificate of tax position and the period covered by the certificate is not restricted to a particular tax year. It also has no de minimis level.
I'd always recommend speaking to a tax advisor before doing anything like signing the certificate or declaring online because you could end up paying even more if you make a mistake with your income and file a wrong declaration.
HMRC says that the information they're using doesn't come from the licensing application tax check (even though it's referred to in the letter) so we can only assume that they're getting the information from taxi booking apps!
There are many taxi booking apps out there, with the most notable being Uber, so if you drive for them and haven't declared enough income, you can be sure you'll be receiving a communication from HMRC soon.
And that's the time you need to speak to a tax advisor like me.
If you'd like to find out more about anything I've written here, do call me on 01908 774323 or leave a comment below and let's see how I can help you.