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 ...
HMRC says that the information they're using doesn't come from the licensing application tax check!
They compare booking data against what particular taxi drivers have been declaring on their tax returns. You can imagine that many take cash and often get tips so if they're under declaring then they could be in trouble.
"HMRC are currently looking into more than 4,000 private hire taxi drivers!"
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.
Until next time ...
HELEN BEAUMONT
Would you like to know more?
If anything I've written in this blog post resonates with you and you are, or know of, a taxi driver who's had a letter from HMRC, it may be a great idea to give me a call on 01908 774323 and let's see how I can help you.
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
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