From January 2024 HMRC will put an end to tax evading Deliveroo and Uber Eats Drivers.
HM Revenue and Customs (HMRC), has issued a warning to those who make money through side businesses like Airbnb, Uber Eats, Deliveroo, and Etsy.
HMRC has indicated that it will step up its efforts to penalise anyone who fails to disclose their income from these activities and pay the proper amount of tax beginning on January 1, 2024. The warning is a component of HMRC’s broader campaign to stop tax evasion and ensure that everyone pays the right amount of tax.
HMRC is committed to closing any loopholes that let tax fraud continue undetected as the gig economy grows and more people depend on side jobs to supplement their income. HMRC acknowledges the need to continue to be cautious in enforcing tax compliance in light of the emergence of marketplaces like Airbnb, Uber, and Etsy where people can easily earn money by renting out their homes, offering transportation services, or selling handcrafted items.
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The warning serves as a reminder that even income earned from these seemingly informal activities is subject to taxation, and those who fail to meet their obligations may face penalties and legal consequences.
HMRC is spending increased resources and manpower to investigate and track down individuals who are not reporting their income from these platforms. They are working closely with the respective companies to obtain data and identify individuals who are not reporting their earnings.
In addition to penalties, HMRC has the power to conduct audits and even take legal action against those who deliberately evade paying taxes. This crackdown aims to ensure a level playing field and fairness in the tax system for all individuals, regardless of the nature of their income.
Furthermore, HMRC is also actively working on developing advanced data analytics tools to improve their ability to identify tax evasion. These tools will allow them to analyse large amounts of data from various sources, such as bank transactions, online marketplaces, and social media platforms, to detect any discrepancies between reported income and actual earnings. By leveraging technology, HMRC aims to stay ahead of tax evaders and minimise the tax gap.
People who may have engaged in tax fraud or have unreported income may find this to be of concern. So what do you need to do? You must speak to a qualified accountant if you believe you may have participated in tax evasion or have undeclared income.
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An accountant can help you navigate through the complexities of the tax system and assist you in coming forward voluntarily to rectify the situation. By taking proactive steps to address any potential issues, you can avoid potential legal consequences and penalties that may arise from non-compliance with tax laws.
Remember, it is always better to address these matters sooner rather than later.
If you need advice or an accountant that deals with self-employed delivery drivers and gig workers in general, speak to Ugo Tax, which specialises in these matters.
Please share this post with friends and colleagues who have a side hustle with Deliveroo, Uber Eats, Uber or Etsy to avoid them being caught out by the HMRC crackdown! Thanks for reading.
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