Are Transport for London (TfL) forcing London taxi drivers to pay an extra half £1 million to the taxman ?
For six months despite a lack of support from any other organisation or union, the LCDC had been asking TFL if Taxi drivers can accept an “instant hiring” via an app when they are located outside of the licensing area.
Why do we want to know this ?
The Answer is simple, TfL’s refusal to answer the question could be costing taxi drivers up to half £1 million overpayment in income tax!
How?
There are hundreds (if not thousands) of taxi drivers that live outside of the TfL/Met area where we are licensed to work (ply for hire).
From a strict HMRC perspective a taxi driver cannot claim for all of the fuel they put into their vehicle as a taxable allowance when completing their end of year tax return, as an example:
If a taxi driver lives in Cambridge, they cannot claim for the portion of fuel (as a taxable allowance) that takes them from their home in Cambridge to London where they are licensed to start work (ply for hire)
But...
If TfL confirms that a taxi driver can accept an instant hiring viral app when they are located outside of their licensing area, then all the taxi driver would need to do ... is come out of their home in Cambridge, switch on an app and be available for instant hiring -The taxi driver is then deemed to have started work and can legally claim their full fuel allowance for travelling to London, as they are available for instant Holinger via the app throughout their commute.
What needs to happen?
Yearly HMRC tax returns are mostly black-and-white, although there is some room for interpretation. The key question HMRC mostly ask when you face the tribunal for wrongly claiming taxable expenses is: is the claim defensible?
The defence.
If TfL confirm in writing that a taxi driver can accept an “instant hire” via an app (just like Uber) when the driver is located outside of the TfL area, then the driver can claim their full fuel allowance as the tax allowance claim is defensible. However if TfL state that the taxi driver cannot except an “instant hire” when they are located outside of the TfL area, then drivers cannot claim the full fuel allowance as a taxable allowance!
If there are 1000 drivers that live 40 miles from London where they are officially licensed to ply for hire (start work) but can now claim for all of the fuel allowance on their tax return, (because TfL confirm that you have a can except an instant hire via an app) then it can be argued that each driver would be allowed to climb about an extra £10 per day as a taxable fuel allowance (80 mile round trip).
Meaning a driver working a five day week and claiming the £10 extra fuel allowance instead of paying income tax on the same £10, would be paying about £480 per year less on income tax.
How have I come to this conclusion?
£10 per day subject to income tax (now claimed as a fuel allowance) times five days of working week, times 48 weeks equals £2400, divided by the 20% income tax rate equals a £480 tax overpayment by every taxi driver living outside of the TfL/Met area.
There seems to be one Chatra for private hire and another for taxi drivers.
Why are TfL refusing to answer the question: “ Can Licensed Taxi Drivers except an instant hiring (ping) via an app when they are located outside of the licensing area ?
Isn’t it about time TfL and the mayor of London Sadiq Khan started answering these questions ?
Chris Johnson on behalf of the LCDC.
*Tonight Grant Davis will be in Astral Café from 8pm till 10pm taking on new members.*
Many said they would join if he dumped Gett adverts from The Badge - he did.
LCDC's legal team are top notch.
LCDC's investigative team (Chris, Danny, Mark and co) are directly responsible for TfL's refusal to license Uber.
Directly responsible for the Daily Mail exposé's, Tim Fenton's Zelo Street blogs, Andy Gilligan's Sunday Times articles ridiculing TfL and Uber, DI Neil Bellany's assistance and emails, 99% of TfL FOI's, the proof that Uber's app is P4H that is now assisting in the legal battle against Uber's appeal.
The LCDC are Proactive not Reactive.
The LCDC are no longer going to nod in acceptance, with the other orgs, to everything TfL tells us to do. While the rest posture, the LCDC gets out there and are getting things done!
Give your support to those who are fighting back!
*Cone among and join the LCDC tonight!*
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