heathcote wrote:
Think that person will be in trouble when he informs the HMRC the date they obtained their 1st licence.
Might depend what they tell HMRC, and to what degree HMRC cross-check any information disclosed with local authorities.
I mean, say someone got a badge in 2010, but never declared anything, but renewed in 2016, and started declaring income then. When HMRC asks when they were first badged, they could say 2016, and unless HMRC cross-checked this with the council, they'd never know they actually got a badge in 2010.
But anyone renewing a three-year badge this May, say, but just registering with HMRC a few weeks beforehand, then that would flag up that they've not been declaring their earnings. Which might in turn alert HMRC and open up a whole can of worms about their history.
So a lot will depend on to what extent HMRC liase with LAs if anything is flagged up, and to what extent a dodgy applicant is willing to take that risk.
So suspect a lot of them won't reapply, because they don't want to declare earnings. Some might want to reapply and start declaring, but they might not want to risk opening up a can of worms.
Of course, it will depend how long they've not been declaring for. The longer they've not been declaring, the bigger the can of worms that could be exposed, therefore not worth the risk of reapplying.
And there's also wider risks that could be thrown up for dodgy drivers, such as other income that hasn't been declared, or fraudulent benefit claims, for example.
So it will depend on the individual, and the extent to which they think they'll be found out, and the wider risks attached to that.
And that's just for a straightforward case of someone actually working in the trade. A lot of people have badges that are genuinely never used, and that's one avenue a non-declaring driver could try if they're questioned.
But even for badgeholders who genuinely don't use them, the tax check process will deter a lot of them from renewing.