TAXING MATTERS
HOW NEW EUROPEAN DIGITAL PLATFORM RULES IMPACT PRIVATE HIRE COMPANIES
Article by Gary Jacobs CEO Eazitax 020 8529 2600
www.eazitax.co.uk
Many people are already aware of the EU’s new digital platform rules, designed to modernise and regulate the digital space. The European Union has rolled out the Digital Services Act (DSA) and the Digital Markets Act (DMA) to tackle everything from market mono- polies to online safety.
What’s the big deal?
These rules mean that digital platforms must track income from those offering services such as accommodation, passenger transport and personal services, then report it to tax authorities. HMRC has given us the lowdown on how these laws affect sectors, including private hire companies. Let’s break it down!
European Digital Platform Rules: a quick rundown
Digital Services Act (DSA): • Aims to boost transparency, fight illegal content and protect user rights.
• Platforms need to act fast to remove illegal content and be clear about how they moderate services, including adverts.
Digital Markets Act (DMA):
• Targets big platforms, or “gatekeepers,” to stop them from stifling competition.
• Ensures these big players don’t block competitors and keeps the market fair.
HMRC’s take and what it means for private hire companies
HMRC has clarified how these rules apply in the UK, especially for digital service platforms, such as apps and websites, used by private hire companies for booking and managing rides. This helps clear up what private hire platforms need to do in both the EU and post-Brexit UK.
30 What does this mean for private hire companies?
Compliance and enforcement: Private hire platforms must now ensure that they don’t host illegal content and must handle user data transparently, following stricter DSA rules.
Market competition:
The DMA’s anti-monopoly stance could help smaller private hire companies by ensuring fair market access, preventing big platforms from playing favourites.
Operational costs:
Adapting to these new rules might mean higher costs, for example in updating systems to meet transparency standards or tweaking platform algorithms.
Tech investments:
Companies might need to upgrade their tech or develop their own software to reduce reliance on dominant platforms, which could be pricey at first but worth it long-term.
So, when do you need to worry about this?
The new EU digital platform rules, along with HMRC’s updates, signal a big shift towards more regulation in digital markets. While the focus is mainly on tech giants, the ripple effects will reach smaller sectors, such as private hire despatch and operators, over the next few years. This means big changes for the gatekeepers, but you guys aren’t in the hot seat just yet. You’ll need to navigate the new opportunities and challenges these rules bring.
By promoting fair competition and boosting user protection, these regulations could lead to a healthier market, though with more compliance to handle.
For private hire companies, staying on top of these changes and being proactive is key to thriving in the evolving digital world.
What about the drivers?
Stay tuned for my next article, where we’ll dive into the pros and cons of these new rules for drivers.
JUNE 2024 PHTM
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76
