HMRC Warning to Private Hire Drivers
HMRC have been sending the following SMS message to some private hire drivers recently:
Our records show you may have undeclared income as a driver who carries paying passengers. To tell us about this income go to GOV.UK and search ‘make a voluntary disclosure’. If you have already contacted HMRC, please ignore this message.
What’s the issue?
There are two potential reasons as to why an individual would receive this message from HMRC:
1. Some private hire drivers have been using Limited Companies to receive funds for work done from ride sharing apps like Uber and Bolt. This means that the income they receive from these Apps does not match the income declared on their tax returns. This could be an issue and might prompt HMRC to check your records to make sure that you’re paying the right amount of tax.
2. The income reported on the tax return might not match with the income HMRC holds for an individual. This can, again be an issue and might prompt HMRC to check your records to make sure that you’re paying the right amount of tax.
What does it mean for me?
It is important that private hire drivers ensure that they report the correct income on their tax returns particularly those who work for ride sharing Apps like Uber and Bolt.
As the cost of living crises affects all of us, it is important that you pay the correct amount of tax whilst at the same time utilising all allowances at disposal to reduce your taxable income and the tax liability.
It also means that you keep all your income and expenditure records for a period of at least 5 years after the 31 January submission deadline of the relevant tax year.
How can we help?
With over 50 years of combined experience, we understand the private hire industry well and have been helping our clients with their tax affairs for many years. If you have received the earnings message from or would like help with your tax affairs, please get in touch.