HM Revenue & Customs (HMRC) has begun sending letters to Uber drivers and other private hire drivers across the United Kingdom, requesting them to verify that all income generated through digital platforms has been declared on their tax returns.
This development follows the introduction of new reporting requirements for digital platforms, which are designed to increase transparency and enhance tax compliance in the gig economy. Official correspondence is being sent as HMRC leverages detailed earning data reported by platforms such as Uber, relating specifically to the tax years 2022–2023 and 2023–2024.
Drivers are now urged to review their tax filings and make any necessary amendments to avoid potential penalties.
HMRC Issues Compliance Letters
HMRC’s Individuals and Small Business Compliance team has initiated a campaign targeting self-employed private hire drivers, including those who use Uber and similar digital platforms.
Letters advise recipients that HMRC has received information indicating a likely discrepancy between platform-reported income and figures declared in recent self-assessment tax returns. The communication states that for the relevant tax years, the department holds records of specific income levels passed on by digital platforms.
Drivers are asked to thoroughly review their self-assessment returns and ensure all platform-derived income, including retained fees, is fully reported.
Where previous amendments can no longer be made via standard means, HMRC directs drivers to submit corrections through the department’s digital disclosure service.
Details of Income Reporting Requirements
The HMRC letters clarify that, under current law, private hire drivers are treated as self-employed and must include all business income on their tax submissions. This includes any fees deducted by the platform before payment is received.
Drivers are reminded that failure to declare full earnings may result in penalties and interest charges if additional tax liabilities are later uncovered. If drivers have already declared all their income appropriately, no further action is necessary.
New Digital Platform Reporting Rules
The recent increase in compliance activity follows the implementation of new HMRC reporting obligations that took effect on 1 January 2024. Under these rules, digital platforms functioning as Reporting Platform Operators must annually report the total earnings of drivers using their services.
These requirements apply to all major platforms facilitating private hire and taxi bookings in the UK, including Uber, Bolt, Freenow by Lyft, and Gett.
The new system is designed to allow HMRC to match self-assessment tax returns with platform-reported data, reducing opportunities for under-reporting and strengthening tax compliance.
Operator Obligations and Driver Data Collection
Over the last year, major private hire and taxi app operators have contacted drivers to collect updated information, including National Insurance numbers and other identifying details mandated by HMRC.
Operators are now obliged to verify and submit key pieces of information, such as drivers’ full names, dates of birth, addresses, and National Insurance numbers, when reporting annual earning data.
Platform contractors who fail to provide the required data risk delays in reporting or potential interruption of their ability to use the platform’s services.
Implications for Driver Tax Liabilities
With enhanced data sharing between platforms and HMRC, all digital platform earnings regardless of whether drivers are full-time or part-time will now be routinely disclosed to tax authorities. This process is expected to minimise discrepancies and prompt drivers to ensure absolute accuracy in their tax declarations.
Should platform-reported income exceed the amounts included in a driver’s self-assessment, HMRC may levy additional taxes, penalties, and interest.
Some platforms have issued guidance to drivers warning that incorrect or incomplete personal information could result in compliance checks or affect their ability to remain active on the app.
Final Summary
HMRC’s latest letters to Uber and private hire drivers mark a significant shift in the compliance landscape for gig economy workers. Driven by new digital platform rules, HMRC is now able to cross-check platform-reported earnings with declared income for recent tax years, urging self-employed drivers to review past submissions and disclose any undeclared amounts voluntarily.
The expanded data-sharing requirements place increased responsibility on both drivers and platform operators to ensure full transparency and compliance with tax obligations.
As digital reporting becomes standard practice, gig economy participants are advised to maintain accurate records and stay informed of the evolving regulatory environment.
For drivers and platform users seeking to monitor their tax and income activity, apps such as Pie can offer useful support in tracking earnings and ensuring compliance.
