HAPPY NEW YEAR OUR GIFT TO YOU? A HEAD START ON THE
MAKING TAX DIGITAL FOR INCOME TAX SELF-ASSESSMENT
This has been postponed a few times, but the complete digitisation of the tax system, starting with tax returns, is nearly here. It has been postponed twice, but when it comes, it is going to make a substantial change for drivers. 2023 is the current date for its implementation. Tax returns are filed online anyway, but we will all need to be able to cope with four tax submissions a year. Yes, you heard that it right. We will, however, help our clients to keep up.
Changing from once a year to quarterly tax returns, is felt by many accountants to be a step too far. Many of our clients still bring in a bag of receipts. Some accountants feel that they won’t be able to keep up. We think, with the right help from us and the right help from operators and their tech suppliers, we can do it.
Why is this happening?
It’s about simplifying the tax system, or maybe it is really about the hidden economy. Everyone already has a PTA (personal tax account), that lists everything that is known about them. We show our clients how to access this, they are encouraged to get it as soon as they join us - the more you know the better we work. Once the books and records are harvested monthly
and shown quarterly, there will be no room for ‘errors’ and little chance to repair them. A good accountant with up-to-date information can still help their clients tax plan.
Is there a down side?
There is a quiet revolution happening amongst accountants who feel that you guys won’t be able to cope with giving us your information within this new timeframe. Many also believe there will be a mass retirement of traditional account- ants unable to keep up with technology.
There are a lot of new online apps that are offering easy ways to do your tax return. My experience is that anyone can be helped to adopt new ways of working such as ‘data capture’ (photographing your invoices to store them’), but they still need a real accountant either on the end of a phone, face to face or, at worst, at the end of chat software (instead of a ‘Bot’).
Being able to offer 21st century tech with old-school customer service is what will keep accountants relevant.
If you want To Know More About MTD Please go to:
https://www.eazitax.co.uk/making-tax-digital-our-story
LATEST NEWS FROM THE UBER CASE, AND HOW IT MAY OR MAY NOT AFFECT YOU
There has been something going on at The Royal Courts of Justice. A decision has been made. It included Uber, TfL, the App Drivers and Couriers Union (ADCU), and others.
The press says that it’s about the role of London PHV opera- tors and the contracts that they enter into with passengers:
“….in order to operate lawfully under the Private Hire Vehicles (London) Act 1998 a licensed operator who accepts a booking from a passenger is required to enter as principal into a contractual obligation with the passenger to provide the journey which is the subject of the booking.”
The unions claimed a victory for worker status, saying that the ruling clarified that private hire drivers were workers. However, worker status has to date not been implemented in a practical way anywhere (yet).
Really, the case is testing whether Uber’s operations were compatible with operating laws in London. The ruling says that it was unlawful for an operator to act as an ‘agent’ between a driver and a passenger. This means that Uber et al, not individual drivers, will enter into contracts directly with passengers. Some believe this will lead to VAT on fares, more cost to passengers and no direct benefit to operators or drivers. However, as with the original ruling, I don’t necessarily
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see how Uber or any other app (not paying VAT in the UK) are actually going to be affected in the short term.
What the ACDU did, in theory, was attempt to hammer home the original judgement through a definition of a single term. When reading the press on this judgement, there is an awful lot of ‘shoulda,’ ‘woulda,’ ‘coulda.’ The agent model that was under attack is widespread in our trade, and TfL has continued to remain silent on the detail.
Although the judges concluded that: “To operate lawfully, an operator must undertake a contractual obligation to passengers”. The question is: What is TfL going to do about implementing this decision? It says that operators should be “considering whether any changes to their way of working are required.” Unfortunately, this is without actually offering any guidance as to what that model would look like.
What happens now? TfL is ‘considering’ the written terms of those applying for or renewing a licence and looking at oper- ators’ terms during the period of the licence. So even though the press says ‘panic,’ It’s all still speculation at the moment.
In conclusion, there will be a lot more head scratching before anyone can give clear and precise advice. Nationally, there isn’t anything to worry about.
JANUARY 2022
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