A legislative measure to make it more difficult for non-compliant traders to operate in the hidden economy will take effect in April 2022
The government released its Overview of Tax Legislation and Rates on 11th March which sets out the detail of each tax policy measure announced at Budget 2020.
Section 2, Avoidance, Evasion and Non-Compliance under Measures not in Finance Bill 2020, point 2.50 states:
‘Conditionality: hidden economy – As announced at Budget 2020, the government will legislate in Finance Bill 2020-21 to make the renewal of licences to drive taxis and private hire vehicles (PHVs, for example, minicabs), operate PHV firms and deal in scrap metal, conditional on applicants completing checks that confirm they are appropriately registered for tax. Licensing bodies will have to obtain confirmation that an applicant has completed the check before making a decision on their renewal application. This measure will make it more difficult for non-compliant traders to operate in the hidden economy and help level the playing field for the compliant majority. These changes will take effect in England and Wales in April 2022.
The government is considering extending this reform to Scotland and Northern Ireland in the future and will work will the devolved administrations to this effect.’
To see the full report, go to www.assets.publishing.service.gov.uk