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Many taxi drivers find their customers through online apps such as Bolt, Uber and Ola.
Under its data gathering powers (SI 2012/847 reg 11C) HMRC may request relevant data from business intermediaries who enable or facilitate transactions, which includes data that relates to an account or system that payments are credited into. This allows HMRC to request details of the drivers who have received payments through the relevant booking app.
It appears HMRC has exercised this power recently, and as a result it has identified individuals who may have under-declared their income from driving taxis or private hire vehicles. Over the next few weeks, HMRC will write to around 4,000 of those drivers.
This is a small proportion of the estimated 300,000 taxi drivers in the UK, but HMRC has indicated that this will not be the end of its investigations into this sector.
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