In this world nothing can be said to be certain, except death and taxes
Benjamin Franklin
Do Uber Drivers Pay their Own Taxes?
The Benjamin Franklin quote is one I had heard many times but only fully resonated with me when I became an Uber driver.
The first part of the quote goes without saying, but taxes was something I never fully considered.
You see, as an employee my whole working life, I had my wages paid Into my bank account at the end of every month and all that money was mine. The tax part of it was dealt with between HMRC and my employer based on whatever the tax code was for that current year.
When I left the comfort of being an employee and entered the world of a self employed Uber driver, my knowledge of the self employed tax system ended at the fact that at some point I was aware it had to be done.
Self assessment to me was something you did every morning when you brushed your teeth in front of the mirror.
Luckily I had an accountant friend who was able to guide me through the process of what I needed to do and when it needed to be done, but in typical fashion, I ended up filling my taxes at the very last minute.
This seems to be a common theme among newly self employed Uber drivers who are happy to work day and night doing the fun stuff and earning the money, but when it comes to being organised with their paperwork and receipts, they seem to fall behind.
If you are a new self employed driver, I strongly recommend you find yourself an accountant that will be able to explain to you the process of filling in a self assessment tax return and to make sure that your taxes are filled correctly and on time.
This has never been as important as it is now with the introduction of the ‘Tax Checks Policy‘.
What is the New Tax Check Policy and how Will it Impact Uber Drivers?
From 4 April 2022, licensing bodies (TFL if you drive in London) will be required to direct new applicants to HMRC guidance on tax to ensure they fully understand their tax obligations before they consider their application.
Anyone renewing their license will also have to answer questions on past and current employment to receive a ‘Tax Check Complete’ code which will then need to be forwarded to the licensing authority before their licence can be renewed.
If you are newly self employed, I understand how this can sound daunting, but there’s nothing to be concerned about.
Our friends at Reed & Co Accountants have written a comprehensive guide on tax advice for Uber drivers so go check it out by clicking the link below.
