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

molerat

The problem is these companies are getting leaned on by HMRC and can suffer penalties for not providing information asked for.  One way of them getting that information is by limiting access to your account until you provide it.  What is the big problem with providing that info ?  

flaneurs_lobster

molerat said:

  What is the big problem with providing that info ?  

Pretty obvious that OP doesn't want the income to be reported to HMRC.

poseidon1

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 

OP the relevant allowance is Property rather Trading ( same allowance, different name) - see guidance below

https://www.gov.uk/government/publications/income-tax-new-tax-allowance-for-property-and-trading-income/income-tax-new-tax-allowance-for-property-and-trading-income#:~:text=The new allowances will apply,will cover the trading allowance.

If you elect to use the allowance you cannot deduct JustPark fees you must declare your gross parking fees ( before costs) and then offset the Property Allowance to arrive at your taxable 'profit'.

Depending on how many years you have been letting your driveway ( without presumably declaring), there is the possibility HMRC may raise  prior years discovery assessments based on data provided by JustPark. I would not be surprised if HMRC embarks on a broad based campaign to collect undeclared taxes based on such data.

There is an ongoing campaign against non tax compliant landlords (Let Property Campaign).

Whilst people who let their driveways without disclosing are probably small fry compared to landlords, who can say who HMRC will systematically target next in order to collect revenues, given the ease of access to data sets in this digitised world.

gt94sss2

It is the law that such information has to be reported to HMRC by the firm. If they don't, they are liable to fines. 

If you don't provide your tax information, they will still pass your details to HMRC and you are more likely to be investigated then if you provided your details.

Your "obligation" is to accurately report your income to HMRC. 

vacheron

A few points to note:

• Closing your account won't absolve you of paying any tax you already owe. In fact it could do the opposite and draw attention to your situation.

• As others have stated above, you could use your £1,000 annual trading allowance to avoid tax on most of the amount you have earned, providing you haven't used it / don't need it for anything else

• The "don't worry" link from the BBC above regarding eBay / Vinted etc. is correct to those re-selling their own personal posessions (usually at a loss) but would not apply to renting out driveways which would most certainly be considered income.

silvercar

If you live with a significant other, can you share the income? So each benefit from the £1k allowance?