UK Taxi Drivers Face HMRC Deadline for New Tax Reporting Rules

Taxi and private hire vehicle (PHV) drivers in the UK are racing against time to submit their tax details to digital platform operators ahead of the 31 January 2025 deadline. The new HMRC reporting requirements, which came into effect on 1 January 2024, mandate that all digital booking platforms such as Uber, Bolt, FREENOW, and Gett report driver earnings annually.

Failure to comply with these rules could lead to penalties for operators and potential tax disputes for drivers. Operators have been urging drivers throughout the year to provide their National Insurance numbers and other required tax details to avoid disruptions.

New Tax Reporting Rules for Digital Platforms

Under the new rules, businesses classified as Reporting Platform Operators (RPOs) must track and report all income earned by taxi and PHV drivers through their platforms. The first report, covering earnings from 1 January to 31 December 2024, must be submitted to HMRC by 31 January 2025.

Operators are required to collect and verify key driver details, including full name, address, date of birth, and National Insurance number.

Impact on Taxi and PHV Drivers

For drivers, failure to submit their details on time could result in reporting errors, potentially affecting their tax status. Some drivers have expressed frustration over the last-minute rush and the complexity of compliance.

A London-based driver remarked:

"I’ve been driving for years, and now suddenly we have to deal with more paperwork just to keep working. It’s stressful."

Operators have also warned that missing or incorrect details could delay earnings submissions, creating further complications for drivers.

Operators Face Compliance Challenges

Digital platforms are under pressure to meet HMRC’s strict compliance requirements. Any failure to submit accurate data on time could result in financial penalties and regulatory issues.

An industry spokesperson commented:

"We have been working closely with drivers for months to ensure they understand the new requirements, but the final days before the deadline are always chaotic."

A Major Shift in Taxi Industry Taxation

This new system represents a significant change for the UK’s taxi and PHV industry, increasing tax transparency but also adding new administrative challenges. With the deadline now imminent, both drivers and operators are in a last-minute scramble to comply with the regulations and avoid penalties.