Drivers are warned that undeclared income through apps can be found by HMRC through their data-gathering powers.
Taxi Tax Headache
Drivers often think their income is private and the data is secure. However, according to AccountingWeb, HRMC is finding earnings information by requesting earnings data from the tech companies, who can be forced to comply.
Short and Sons recommend following the steps below to make sure you are not one of them!
Tip 1 - Make sure you are Registered for Self-Employment!
This is easy to do just head to the Short and Sons app HERE or go to the Government Website and search register for self-assessment.
Tip 2 - Make sure you keep accurate records of income
The easiest way to find your earnings for the year is to head to your bank website. You should be able to download the whole year in an Excel or .CSV file. This will allow you to search for a specific keyword, like GETT or CMT, and will give you the income total.
Tip 3 - Cash needs to be accounted for too!
Diaries still have a place on the dashboard of taxis for a good reason. Keeping a tally of the cash received is important and is often overlooked by drivers. It is easy to do. Just pop the amount taken in cash in the book at the end of each shift. The weeks can then be added up to give you a total for the year. It is often more than you might think!
Tip 4 - Get an Accountant who deals with Taxis
Often drivers use accountants that have no experience in the taxi industry, and they miss out on tax savings. Often we see drivers who use Short and Sons for the first time claiming for expenses which are not allowable, for expample for food, clothes, and other expenses which are not exclusivly for the purposes of business. We also see accountants who are not familiar with London cabs not reminding drivers to claim for items like their badge renewal and meter hire. Don't let that happen to you, make sure your accountant is familiar with the trade.
Tip 5 - Join Short and Sons Accountants!
We were originally set up to help london taxi drivers with taxes. This remains a large part of our business, and Jason Short is still passionate about the Black Cab trade. If you attend one of the christmas taxi events you may bump into him.
Short and Sons is 100% owned by an ex-London cabbie.
Switch to Short and Sons by using the app HERE or calling us on 07481 479933. We are now only 7 minutes drive from Heathrow T5 and have parking onsite.
If you wish to read the full article by AccountingWeb, please head here - https://bit.ly/3Dn27Z2