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Taxi apps forced to BLOCK drivers over missing tax details as HMRC cracks down on driver earnings compliance

Perry Richardson


Taxi and private hire booking apps has been forced to block a number of taxi and private hire drivers from their platforms who have failed to submit their National Insurance details, in line with new HMRC reporting regulations.


One of those apps, FREENOW, confirmed it has been engaging with drivers on the issue since June 2024, sending multiple email and SMS reminders to ensure compliance ahead of the 31 January 2025 deadline.

The action follows changes to HMRC rules requiring digital ride-hailing platforms to track and report driver earnings. From 1 January 2024, businesses classified as Reporting Platform Operators (RPOs), including Uber, Bolt, FREENOW, and Gett, must collect and verify key information such as a driver’s full name, address, date of birth, and National Insurance number. This data will then be submitted to HMRC annually, with the first report covering income earned between 1 January and 31 December 2024.


FREENOW has stated that only a small percentage of drivers have been affected by the block, which was implemented following HMRC’s recommendations. Affected drivers were notified via SMS, with a clear message that their accounts would be reactivated immediately upon providing the required information.

The latest measures form part of a broader effort by HMRC to improve tax transparency and ensure all income generated through digital platforms is properly declared. With a growing number of drivers working across multiple ride-hailing apps, HMRC is keen to prevent tax underreporting and enforce stricter compliance within the industry.


The introduction of reporting requirements has meant that digital platforms must now take a more active role in gathering driver tax details. For many operators, this has required a significant administrative shift, with enhanced data collection processes put in place to ensure compliance.

Failure to comply with these regulations carries serious consequences. HMRC has warned that RPOs who do not fulfil their reporting obligations could face penalties, including:

  • A fine of up to £1,000 for failing to notify HMRC that they are a reporting platform.

  • An initial penalty of up to £5,000 for missing the reporting deadline, plus an ongoing fine of up to £600 per day for continued non-compliance.

  • A penalty of up to £100 for each inaccurate, incomplete, or unverified seller or driver record.


HMRC has also advised that companies may consider limiting access to their platforms for drivers who do not provide the required information, or even preventing new drivers from registering until they comply.

Impact on Drivers and the Industry


For taxi and private hire drivers, the new requirements mean they must ensure their tax records are up to date to avoid any disruptions to their work. Whether driving full-time or part-time, all earnings will now be reported to HMRC, making it essential for drivers to provide accurate information.


Any failure to do so could lead to reporting errors, which in turn might affect tax liabilities and a driver’s ability to continue working through these platforms.


The changes have also raised concerns among some in the trade about the added administrative burden placed on self-employed drivers. While platforms have been actively reminding drivers about the deadline, some may still be unaware of the implications of failing to submit their details in time.

For platforms such as FREENOW, Uber, Bolt, and Gett, the focus will be on maintaining compliance while ensuring minimal disruption to services. However, as HMRC enforcement measures increase, the likelihood of driver suspensions remains, particularly for those who fail to meet tax reporting requirements in the future.


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