HM Revenue & Customs have begun sending letters to about 4000 drivers who they suspect may not have declared their income.
It comes 5 months after the introduction of Conditionality tax checks in England and Wales in which drivers must now declare their tax registration status before applying or renewing their licences.
HMRC began sending letters yesterday (September 5th 2022) and will continue until the end of the year to drivers they believe have not paid tax. Recipients will have 30 days to respond or face a possible review of their tax affairs, reports FT.
Drivers who receive such a letter are advised to speak to their accountant, Eazitax are specialist industry accountants. Those who make a voluntary disclosure will be given 90 days to work out and pay the tax owed. Our advice is to speak to us first and allow us to represent your interests.
The following is part of the letter:
“We have information that shows you’ve earned money (income) from driving customers who booked using online applications.
“We also have information that shows that you have not told us about some or all of this income. This means you may owe tax.
“You may also receive a text message reminding you to get in touch with us.
“If you have income you need to tell us about
“You’ll need a Government Gateway user ID and password. If you do not have a user ID, you’ll need to create one. To do this, go to GOV.UK and search for ‘register for online services’, then choose ‘register for HMRC online services’.
“You’ll have 90 days from the date of the letter to work out and pay any tax you owe, via our Digital Disclosure Service.
“If you do not have any income you need to tell us about please tick box 2 or 3 depending on your circumstances.”
Eazitax has already helped thousands of drivers with ‘Failure to Notify’ claims, we can do all of this on their behalf. Contact us immediately for a confidential and no-obligation discussion.
What are Tax Checks?
Taxi and Private Hire drivers must complete a tax check when renewing or applying for their licence. This came into force in April 2022 in England and Wales, with a launch in Scotland and Northern Ireland from April 2023.
During this tax check the recipient must make a declaration to the HMRC stating their tax status. If the driver or operator isn’t registered for tax or inputs incorrect information, they may be find themselves under investigation by HMRC, as seen this week with the 4000 letters distributed to drivers.
Contact Eazitax today if you have received one of these letters and need some advice.
