In a recent development, taxi and private hire vehicle (PHV) drivers are facing account suspensions from app-based platforms due to missing tax information, as Her Majesty’s Revenue and Customs (HMRC) intensifies efforts to ensure tax compliance within the gig economy. This initiative aligns with the “Reporting Rules for Digital Platforms” legislation, effective from January 2024, which mandates that all taxi and PHV digital platforms collect and report drivers’ earnings to HMRC.
To comply with these regulations, platforms like FREENOW have implemented procedures requiring drivers to submit their tax details. Drivers are prompted to provide necessary tax information through the company’s portal to prevent account deactivation. FREENOW advises drivers to seek independent tax guidance to ensure adherence to relevant tax laws and regulations.
These measures are part of a broader strategy by HMRC to enhance transparency and accountability in the digital marketplace. By January 2025, platforms will report driver earnings annually directly to HMRC, necessitating drivers to keep their tax affairs up to date to avoid potential fines or account restrictions.
Drivers are encouraged to proactively manage their tax responsibilities by registering for self-assessment if they are self-employed and ensuring all earnings are accurately reported. Failure to comply with these requirements may result in account suspensions by the platforms and possible penalties from HMRC.
This initiative underscores the importance for drivers within the gig economy to maintain accurate tax records and stay informed about their tax obligations to prevent disruptions to their operations.
Source Chat GPT: taxi-point.co.uk / driver.free-now.com
