From April 2022 HMRC are introducing new tax checks for taxi drivers and scrap metal dealers.
HMRC believes that there is a substantial amount of tax avoidance in both of these sectors, through many traders not being registered as businesses for tax purposes.
To clamp down on this suspected tax avoidance, HMRC have set out plans that they will introduce from 4th April 2022. This will mean that taxi drivers and scrap metal dealers will be unable to renew their respective licences unless they successfully complete a tax check with HMRC, completing a number of questions in relation to their tax status and tax payments.
Once the tax check has been successfully completed, HMRC will issue a nine character code, to be provided to the relevant licencing authority upon application to renew licences.
These new rules will apply to taxi drivers, private hire drivers, private hire vehicle operators, scrap metal sites and scrap metal collectors. HMRC has indicated that they will be looking to extend these tax checks to further sectors in the future.
Accountants are not permitted to complete these tax checks on their clients behalf, but we will always be on hand to assist wherever needed.