JustPark asking for tax info – can I close my account instead?

Eastnec

Hi,

I rent out my driveway through JustPark. Last tax year I earned about £1,500. JustPark are now asking me to provide tax information because of new reporting rules.

I’d like to stop renting out the space and close my account, rather than continue and provide tax details.

Is there a way to close the account without submitting tax information, and what are my obligations now that I’m stopping?

I want to make sure I handle this correctly.

Thank you.

Dazed_and_C0nfused

Eastnec said:

Hi,

I rent out my driveway through JustPark. Last tax year I earned about £1,500. JustPark are now asking me to provide tax information because of new reporting rules.

I’d like to stop renting out the space and close my account, rather than continue and provide tax details.

Is there a way to close the account without submitting tax information, and what are my obligations now that I’m stopping?

I want to make sure I handle this correctly.

Thank you.

You seem to be contradicting yourself there.

marcia_

 If you don't provide your details they will close your account and report you to HMRC. 

soolin

Your income, whether or not it is taxable, will be reported anyway, just the same as with sales from ebay and such like. Giving your NI details just means it can be allocated direct to your account by a bot. If you don't give details then it is still reported, but may need manual input to allocate it to the correct person, and I'm seeing suggestions that this makes it more likely to be flagged up for a slightly closer inspection.

Obviously, as with all the dozens of threads about online sites declaring to HMRC, just being declared doesn't mean that something is taxable, and even if it is taxable you rother income etc would be taken into account anyway. If this was taxable then it is still taxable and should be being declared already, if it's not taxable (and I have no idea what exemptions are in place for letting your driveway) then it remains non taxable. 

silvercar

General rule is that this would be a good use of your trading allowance, if not used elsewhere.

£1000 gross allowance, so you would just pay tax at your marginal rate on the £500 over the limit.

Alternatively, you take your gross proceeds, deduct expenses incurred and pay tax at your marginal rate on the remainder. I don’t know what JustPark charge you to use their site and process payments, but I’d guess about 20%, I don’t know what other costs you would have for this service. Tend to think it’s a good use of your trading allowance, if not used elsewhere.

That said, if you want to close your account you could do so. JustPark will then only provide whatever information they already have to hmrc, who may or may not be bothered enough to investigate for what is likely to be a tax bill of max £225. They clearly have your address, possibly a name (though it could be the name of anyone in the household) and an account. 

Grumpy_chap

Eastnec said:

Last tax year I earned about £1,500. 

So, assuming you are doing this as a sole trader and using the trading allowance, £500 of this is subject to income tax at your appropriate marginal rate.
Has that been properly declared? 
Why does Just Park also declaring make any difference?

Albermarle

Similar sort of story on BBC website today.
Sold 30 items on Vinted? Don't panic if you get a message about tax - BBC News

Eastnec

Thank you - follow on query …

JustPark refusing account closure without tax information – what are my options?

I’ve earned about £1,500 from renting out my driveway through JustPark. I’m PAYE and don’t otherwise complete a Self Assessment. 

JustPark say I cannot close my account or withdraw my remaining earnings unless I provide tax information, and they have paused withdrawals until I do. I now want to stop letting the space and close the account.

I’ve also noticed they deduct transaction fees per booking.

My questions are:

• Can JustPark legally refuse to close my account unless I submit tax information?

• Is there a way to pay any tax due and close the account without registering for Self Assessment?

• Can the £1,000 trading allowance be used, and do the JustPark fees count as expense

Thanks 

Dead_keen

I struggle to see how the trading allowance can be used when you don't have a trade. But there is a property allowance that you can use instead. If you use the allowance you cannot deduct costs. As you got less than £2,500 you can just tell HMRC. More details here: https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

Dazed_and_C0nfused

Eastnec said:

Thank you - follow on query …

JustPark refusing account closure without tax information – what are my options?

I’ve earned about £1,500 from renting out my driveway through JustPark. I’m PAYE and don’t otherwise complete a Self Assessment. 

JustPark say I cannot close my account or withdraw my remaining earnings unless I provide tax information, and they have paused withdrawals until I do. I now want to stop letting the space and close the account.

I’ve also noticed they deduct transaction fees per booking.

My questions are:

• Can JustPark legally refuse to close my account unless I submit tax information?

• Is there a way to pay any tax due and close the account without registering for Self Assessment?

• Can the £1,000 trading allowance be used, and do the JustPark fees count as expense

Thanks 

• No idea, maybe check the Just Park T&C's you are working to

• For a single tax year with those amounts yes

• Yes and no.  It's one or the other.  You either use the trading allowance (but probably property allowance in this instance) OR claim actual expenses.  You seem to want to have your cake and eat it 😳

silvercar

How much do JustPark still hold? I’m surprised you leave the money in an unregulated company and don’t withdraw as you go along.

That said, if they refuse to allow withdrawal now, I don’t know what you can do other than supply information.