If you work as a Deliveroo driver you may be concerned as to what is DAC7 and why Deliveroo is asking for your tax information.
As we have spoken about previously, large platforms such a Deliveroo must now comply with HMRC’s new rules and provide information about drivers who are working for them to the tax man.
What is DAC7 and Deliveroo?
DAC7 whilst it may sound like an over payed professional footballer is a piece of EU legislation that requires digital platforms such as Deliveroo to report their workers income to HMRC.
Why is DAC7 introduced with Deliveroo?
For years many Deliveroo drivers pay has been unreported HMRC by individuals, and HMRC are now looking to find out who has not been paying tax.
Thats because if you work for Deliveroo you are classed as self employed and must declare your Deliveroo Pay through self assessment. You can do this by contacting an accountant.
However, a large number of Deliveroo drivers have not been submitting a self assessment and therefore working illegally in the UK for Deliveroo. This has now become a major concern for Deliveroo drivers who are extremely stressed and worried that they will have the tax man knocking on their door.
What information does Deliveroo need to report?
Deliveroo need to report the following information to HMRC:
- Full name and address
- Date of birth (if an individual)
- Unique tax number (UTR)
- Business registration details (for companies)
- Total income earned through the platform
- Number of transactions
- Bank account details
- Any fees, commissions or taxes deducted
What happens if i don’t comply with DAC7 tax requirement?
If you fail to comply with Deliveroo DAC7 request you may have your account put on hold or even closed down. Even worse, you may be reported to HMRC by Deliveroo for failing to comply.
What can I do?
If your stressed and concerned about what this means you may want to contact us at Ugo Tax who can answer any questions you may have, and tell you what you need to do next.
Ugo Tax 