TaxiPlus Driver Finance Round Up
Fourth and Fifth SEISS Payments
In the Budget 2021, Rishi Sunak outlined there would be continued financial support for self-employed individuals in the form of the Self Employment Income Support Scheme (SEISS). This was good news for the taxi and private trade as the vast majority of drivers do work on a self-employed basis. The application for the fourth payment, which opened on the 12th of April, did cause some confusion as it was offered differently than the previous three.
For the current round of payments, HMRC has been contacting those that are eligible to let them know that they qualify for the SEISS payments. This apparently only applied to newly registered self-employed persons and not those that have already applied for the previous payments. Existing claimants should still be able to submit their info via the link they have used previously.
The fifth and currently final SEISS payment will be less accessible than the previous four payments. The full 80% grant will only be available to those who can evidence that their income has dropped by over 30%. Individuals whose income has dropped by less than 30% are only eligible to apply for a 30% grant payment.
As before, to register for the SEISS payments you need the following information:
To apply, you will need your:
Self-Assessment Unique Taxpayer Reference (UTR)
National Insurance number
Government Gateway user ID and password
UK bank details including account number, sort code, name on the account and address linked to the account
Council Specific Payments
While this doesn’t apply to everyone, there are plenty of licensing authorities that have dedicated grants available to licensees in their area. Over the past 12 months, the government have offered increases in funding for local authorities on more than one occasion to help mitigate the effects of the pandemic.
How local authorities choose to utilise this extra funding is entirely down to them but in many cases, there is a set grant available to taxi and private hire drivers. If you are unaware of any schemes like this in your area, we would recommend contacting the council as they will be able to advise you on any extra support available.
Support Payment Scams
As with any sort of financial transaction you need to be aware of scams. Unfortunately, with the number of support options available to self-employed individuals we have also seen a rise in support payment scams. HMRC have communicated repeatedly about the rise of these scams on their .gov page and social media. They offer comprehensive advice on how to stay aware of these scams here.
These scams take advantage of people already in a financially vulnerable situation by offering access to funds and then stealing what money they have. They can come in the form of text, emails, phone calls and even messaging apps like Whatsapp so make sure you stay wary of unexpected communications.
HMRC have confirmed that they will:
only ever call you asking about a claim or payment on a debt that you already know about
never leave a voicemail threatening legal action
never give the reason for a call on a voice message
Never contact you via Whatsapp
Never ask you to pay with gift or payment vouchers
Vehicle Finance Relief
New vehicles are generally one of the biggest investments for a driver. With such a large price tag attached to some vehicles, particularly new electric models, finance agreements are a common aspect of the trade. With this being the case, it has meant that many individuals have struggled to continue to make finance payments due to such a massive loss in income.
Some vehicle finance firms are now offering payment holidays for drivers who have been affected by the pandemic. If you currently have a vehicle on finance, it may be worth discussing your options with the lender to establish your options. Those that have financed electric vehicles are more likely to be able to access this option. This is because of support for the government’s initiative to reduce the numbers of petrol and diesel cars on our roads.
For more information about TaxiPlus’ licensing services, or, if you just want to keep up to date with our news coverage, be sure to sign up to our mailing list! Alternatively, give us a like or follow on social media to be sure you’re always up to date.