Private hire industry meets with HMRC over concerns for new digital platform reporting rules requiring driver revenue submissions
- Perry Richardson
- Feb 22
- 3 min read
Concerns over new digital platform reporting rules have prompted a meeting between industry representatives and HMRC officials.
Leaders from the Licensed Private Hire Car Association (LPHCA), the National Private Hire & Taxi Association (NPHTA), and specialist accountancy firm Eazitax met with HMRC’s Digital Platforms Team and the Department for Transport to seek clarity on how the legislation applies to private hire operators.
The discussions were said to have centred on the OECD’s (Organisation for Economic Co-operation and Development) new reporting rules, which require digital platforms to report seller information to HMRC from this year. It was clarified that the rules only apply to those specifically covered by the legislation, addressing uncertainty among operators and software providers.
Industry representatives raised concerns about the lack of clear definitions for operators and platforms, highlighting some confusion over reporting obligations. In a statement released they stressed the need for clearer guidance to ensure compliance, particularly for smaller operators with limited resources.
According to Gary Jacobs from Eazitax, HMRC was presented with examples of unclear definitions affecting the trade. Officials were said to have confirmed that penalties would only apply to those knowingly failing to comply, and that operators uncertain about their obligations will be given support rather than facing immediate penalties.
A proposal was made for industry bodies to outline scenarios and definitions to aid understanding. Further collaboration between HMRC and the private hire sector is expected, with updates to be shared with members.
TaxiPoint has contacted HMRC for comment and further details.
A joint statement from LPHCA, NPHTA and Eazitax shared by Gary Jacobs (Eazitax) reads: “There has been some concern in our industry about our place in this legislation, so this week, Steve Wright of the Licensed Private Hire Car Association (LPHCA), David Lawrie of the National Private Hire & Taxi Association (NPHTA), and Gary Jacobs of Eazitax (Industry Accountants) met with representatives from the HMRC Digital Platforms Team and the Department for Transport to discuss the new reporting rules for digital platforms.
“The meeting with HMRC was organised by The LPHCA as the second major collaborative project in recent weeks with the NPHTA alongside Eazitax, whom we both had worked closely with on other HMRC issues.
Together, we emphasised the need for clarity and understanding for taxi & private hire vehicle operators and industry software suppliers regarding their obligations under these regulations.
“The HMRC Team provided an overview of the OECD's reporting rules, which require platform operators to report seller information to HMRC starting this year. However, it was clarified that these rules are only for those captured by the legislation.
“We raised concerns regarding the confusion surrounding the definitions of operators and platforms, as well as the lack of clear guidance from HMRC.
“We highlighted that there was widespread misunderstanding among operators about their reporting responsibilities, if any! We emphasised the need for clearer communication and definitions to facilitate compliance, particularly for those with limited resources.
“The HMRC team were given clear examples of where the definitions were not clear to our trade and all participants expressed a desire for collaboration. It was made clear that penalties would only be applied to those who are aware that they are captured by the legislation and choose not to comply. So those who are genuinely unsure as to their obligations and require help will get it, and not be penalised.
“A proposal was made for us to outline various scenarios and definitions related to the reporting rules, with the aim of improving understanding and cooperation between HMRC and the private hire sector. We will, therefore, be working further with HMRC but reporting to our members and the wider trade as we move forward.
“We pointed out that, from what we could gather, the majority of our industry would not be affected by this new requirement, as it seems to be more aimed at “platforms” such as Ebay, Etsy, Amazon, AIrbnb, etc, where an item or a service is advertised and paid for on the platform only, the platform then passing payment on to the seller, which did not fit into the majority of Private Hire Operators working models.
“HMRC were extremely receptive to our comments and recognised that with the combined input from the two largest industry representative bodies, it would indeed be highly beneficial to work together towards clarity.”
