Not a London Cabbie Writes: I’m Ubercus.
Uber is a taxi service according to European law. A landmark case settled recently that is setting the bar for those companies waiting in the wings to take their disruptive technology crown.This could be the first of the big gig economy legislations that will impact on us all.
As I write this the Christmas rush is rushing, and accountants everywhere are ignoring Christmas under a mountain of tax returns. As I do every year I will remind everyone of the tax return deadline of 31st January 2018. Also, please be warned that your payments of any tax due should also be made by this date. This includes both the payment of any balance of Self-Assessment monies from for the period 2016/17, plus any interim payment on account for 2018/19.
Here is the boring and yet scary bit, just for good measure so that you can’t say I didn’t warn you. The following penalties apply to Self-Assessment returns that are filed late: From day one: you will be charged a £100 penalty even if you have no tax to pay or have paid any tax due, on time. From three months late: You will be charged an automatic daily penalty of £10 per day up to a £900 maximum. From six months late: You will be charged additional penalties, Over 12 months late: Additional penalties based on greater of five per cent of tax due. In serious cases this penalty may be increased up to 100 per cent of tax due. Last year around the Christmas holiday period over 40,000 taxpayers filed their tax returns around the holiday period, 3000 people filed their returns online on Christmas Day and almost 11,000 taxpayers filed on Boxing Day. Altogether this was a 30% rise in the number of filings from 2016/17 over the three-day festive period.
If you were or are one of them, it might be worthwhile planning ahead to try and avoid working during the holidays! But hey people ready or not for the end of the tax season, you know who you are, lets have a little look at what the new year has in store for us.
- Big new changes coming for National Insurance (NI) payments for the self-employed. The govt will abolish class 2 NI contributions and reform class 4. What does that mean? Well they are building up to a new form of entitlement to state pension, (those that aren’t entitled to auto enrolment). Let’s see if this helps or hinders, change is not always good.
- Making Tax Digital is coming one step closer but luckily not for small businesses and landlords who have been put back past April 2018 to 2019. It will though be mandatory for VAT registered businesses over £85,000. However, this is all just putting off the inevitable. People speak to your accountants. By the way the VAT threshold will be frozen at £85k until April 2020.
- The national living wage rate for workers aged 25 and over will be £7.83
- GDPR – also look out for it. Massive changes The General Data Protection Regulation comes into effect on 18 May 2018 requires businesses to document their data protection procedures more rigorously. You might not believe it, but it will be a massive change for many companies that hold data.
- I also expect the government will finally come clean on what they are actually going to about the Taylor Report ands the gig economy working practices. Or maybe not..
Well expect this and plenty more stuff on driver status coming to you soon, but for the time being Happy Festivus everyone from myself and all at Drivertax.