👉 What is the new tax directive?
👉 How will the tax authorities use my information?
👉 What actions do I need to take to comply with my tax reporting?
👉 How often must I re-verify my tax information with FREENOW?
What is the new tax directive?
The Reporting Rules for Digital Platforms is a new tax directive set by the HMRC requiring all digital platforms to report their 'sellers' (drivers) earnings to tax authorities.
From 01/01/2024 onward, any income that self-employed drivers generate through our platform must be annually reported to tax authorities by 31/01/2025. After the report to the tax authorities, we will provide you with a copy.
Please note that our reporting obligation does not influence your taxable status in your respective jurisdiction. Whether or not you must pay taxes on your rides is determined by your local tax laws and not by transparency requirements as those set by the Reporting Rules for Digital Platforms rules.
How will the tax authorities use my information?
In principle, the reporting objective is to help tax authorities with the simplification of income tax statements review. However, we can not confirm to which extent this information will be used on tax return verification by tax authorities.
Who will be affected?
The Reporting Rules for Digital Platforms applies to partners (individual entrepreneurs and legal entities) who offer services through the FREENOW platform in the UK.
FREENOW can not provide tax advice. We strongly suggest that each driver seek independent tax guidance from a qualified professional to make sure they follow all relevant tax laws and regulations. Tax law application varies significantly depending on individual circumstances.
What actions do I need to take to comply with my tax reporting?
Currently, there is no specific action on your part. If any missing data is needed, we will reach out to you accordingly.
In case you were contacted more than one time to provide the missing required information and still do not make it available, we are legally obliged to suspend your payouts or even block your FREENOW account until you comply with the information provision requirement.
How often must I re-verify my tax information with FREENOW?
Every 3 years. If you fail to re-verify your information, you will be subject to the same penalties as if the required reporting data wasn’t provided.
Should you have any inquiries or require clarification on DAC7 with FREENOW, don't hesitate to contact us.
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