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New Tax status checks
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Author:  edders23 [ Fri Sep 11, 2020 7:32 pm ]
Post subject:  New Tax status checks

So from 2022 when we apply for a badge renewal our licensing team will require Proof of our tax status in the form of our UTR and NI number. I would imagine for most of us this will be just be an extra admin burden and probably an extra £50 on the cost of our badge.

I was thinking about it and I can't see any real benefit from doing this other than to make sure everyone registers as self employed. Surely if the inland revenue were trying to clamp down then requiring licensing authorities to notify them of every driver who has applied for a license would be better.

That way they can check your status and investigate those who haven't submitted proper accounts or declared their status.

Any constructive thoughts ?

Author:  Sussex [ Fri Sep 11, 2020 9:28 pm ]
Post subject:  Re: New Tax status checks

Quote:
I would imagine for most of us this will be just be an extra admin burden and probably an extra £50 on the cost of our badge.

It will be no different than the current DVLA check council's undertake, which is a few quid, and some councils already include that in the license fee.

Author:  Sussex [ Fri Sep 11, 2020 9:41 pm ]
Post subject:  Re: New Tax status checks

Quote:
I was thinking about it and I can't see any real benefit from doing this other than to make sure everyone registers as self employed. Surely if the inland revenue were trying to clamp down then requiring licensing authorities to notify them of every driver who has applied for a license would be better.

It's nothing to do with requiring drivers to be self-employed, in fact I'm quite sure the government would wish everyone was PAYE.

This action is to ensure that those claiming benefits, that they are not entitled too, are found out, to ensure we don't have licensed drivers who owe years and years of outstanding tax, and finally to ensure drivers fill in their tax returns on time.

Author:  heathcote [ Sat Sep 12, 2020 1:16 am ]
Post subject:  Re: New Tax status checks

To obtain a license you must prove to the licensing authority that you are registered with HMRC,if you cannot provide the HMRC unique number you will automatically be refused a license,vehicle or driver.

This should have been a requirement years ago,would have stopped the pocket money licensees.

Author:  edders23 [ Sat Sep 12, 2020 8:10 am ]
Post subject:  Re: New Tax status checks

I didn't say it was about self employment i said tax status !

My point was why not just get the list of licensed drivers and their NI numbers off the councils and check them against databases ? Why require the councils to do the checks ?

Author:  Sussex [ Sat Sep 12, 2020 5:33 pm ]
Post subject:  Re: New Tax status checks

edders23 wrote:
I didn't say it was about self employment i said tax status !

My point was why not just get the list of licensed drivers and their NI numbers off the councils and check them against databases ? Why require the councils to do the checks ?

Because a council has to decide on who is 'fit and proper', and now the government has decreed that fulfilling your tax requirements is a factor in that.

Author:  StuartW [ Sat Sep 12, 2020 8:39 pm ]
Post subject:  Re: New Tax status checks

edders23 wrote:
Any constructive thoughts ?

Yes - stop leaving a gap between the end of a sentence and a ! or ?

I mean, they're punctuation marks to end the sentence, so leaving a gap between the last letter and the ! or ? is like leaving a gap before a full stop .

Therefore:

Edders incorrectly wrote:
I didn't say it was about self employment i said tax status !

My point was why not just get the list of licensed drivers and their NI numbers off the councils and check them against databases ? Why require the councils to do the checks ?


Should read:

Edders should have wrote:
I didn't say it was about self employment i said tax status!

My point was why not just get the list of licensed drivers and their NI numbers off the councils and check them against databases ? Why require the councils to do the checks?

Apart from that, I think you're making a reasonable point about the tax status checks.

However, and ignoring Sussex's points, I suspect it's basically just a case of putting the onus on councils to do the checking rather than making a whole lot of work for HMRC when they'll have a whole lot of new work anyway because of Covid.

So if there is a significant cost it will end up being paid for by drivers rather than HMRC (or taxpayers, ultimately).

And, purely from an administrative point of view, I suspect it's simply more efficient for local authorities to do it as part of the licensing process rather than HMRC checking hundreds of thousands of licences on hundreds of different local authority databases.

Author:  StuartW [ Sat Sep 12, 2020 10:28 pm ]
Post subject:  Re: New Tax status checks

heathcote wrote:
This should have been a requirement years ago,would have stopped the pocket money licensees.

Dundee has required applicants to provide UTR and NI numbers for a number of years now.

Some extracts from the form:

Dundee City Council wrote:
Unique Tax Reference Number

Self employed persons must register as such with HMRC within three months of setting up this business or they may be subject to a fine. HMRC will issue a ten digit unique tax reference number that will remain with that person for life. You can register as self employed by telephoning 0300 200 3300 or by going online to http://www.gov.uk/log-in-file-self-asse ... tax-return.

Anyone who works for another individual or company and who are not self employed ie they receive a wage and are liable to pay tax through the PAYE system need to register with the Inland Revenue but will have to submit evidence to this effect ie a payslip or P60.

National Insurance Number

You can find this on payslips or letters from the Department for Works & Pensions or HM Revenue & Customs.


Dundee City Council wrote:
Please read this declaration carefully before you sign and date it. We must protect the public funds we handle and so we will carry out checks against Dundee City Council's and the Department for Work and Pensions benefit records in order to check the accuracy of the information to prevent or detect crime or protect public funds in other ways as allowed by law. We will also ask HMRC to verify your unique tax reference (UTR) and its commencement date and may also contact the Home Office regarding your immigration status.


Dundee City Council driver's application checklist wrote:
Is original correspondence from HMRC quoting the UTR attached?

I recall a bit of a fuss when this was introduced maybe 15 years ago now.

Not sure to what extent these things are actually checked, or whether it's more of a deterrent and just checked in individual cases if necessary 8-[

Author:  StuartW [ Sat Sep 12, 2020 10:40 pm ]
Post subject:  Re: New Tax status checks

Another interesting one on the Dundee application form. Is this kind of thing common?

Dundee City Council wrote:
Further to the above the information you provide and any expected income you may gain from driving a taxi will be used to maximise the recovery of any debt that is owed to the Council.

Author:  Sussex [ Sun Sep 13, 2020 4:59 pm ]
Post subject:  Re: New Tax status checks

Quote:
However, and ignoring Sussex's points,

:shock:

Author:  Sussex [ Sun Sep 13, 2020 5:00 pm ]
Post subject:  Re: New Tax status checks

StuartW wrote:
Another interesting one on the Dundee application form. Is this kind of thing common?

Dundee City Council wrote:
Further to the above the information you provide and any expected income you may gain from driving a taxi will be used to maximise the recovery of any debt that is owed to the Council.

No because it's utter bollocks.

Author:  Taxidriver11 [ Sun Sep 13, 2020 11:06 pm ]
Post subject:  Re: New Tax status checks

What if you don’t drive for a living but hold a license for back up incase you loose your job, you wouldn’t have a tax utr

Author:  grandad [ Mon Sep 14, 2020 5:05 am ]
Post subject:  Re: New Tax status checks

Taxidriver11 wrote:
What if you don’t drive for a living but hold a license for back up incase you loose your job, you wouldn’t have a tax utr
I think most people have or should have a UTR if they have any job so that they can check their own tax.

Author:  heathcote [ Mon Sep 14, 2020 10:16 am ]
Post subject:  Re: New Tax status checks

Taxidriver11 wrote:
What if you don’t drive for a living but hold a license for back up incase you loose your job, you wouldn’t have a tax utr


You still would have to register to get a license.

Author:  Taxidriver11 [ Mon Sep 14, 2020 11:07 am ]
Post subject:  Re: New Tax status checks

Why would you register for self employment with HMRC to get an UTR if your not going to be self employed,I guess you could just put your NI number down and explain on the form that you don’t actually drive for a living

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