Just got home to a letter from HMRC?
You’ve just finished the school run or got home from an early morning airport drop-off. You open the door, and you are greeted by an unexpected brown envelope stamped ‘HM Revenue & Customs’.
You open it and read:
“Please check you’ve declared all your income on your Self Assessment tax returns…”
HMRC is contacting drivers across the UK after receiving income data directly from digital platforms. These letters are often called “nudge letters” and should not be ignored.
Why are Uber drivers receiving “nudge letters”?
Under digital reporting rules, online platforms must now report seller’s income data with HMRC.
That means HMRC receives information about:
- Gross fares earned
- Income across specific tax years
- Driver identification details
- Payments processed through platforms
This applies not just to Uber, but to Bolt and other app-based driving platforms.
HMRC then compares that information with what has been declared on your Self Assessment tax return.
If there is an inconsistency, a nudge letter may follow.
What to do about the “nudge letter”?
In most cases there are three possible outcomes.
1. Everything is already correct
Good news! It may be that you declared all your income properly. If that’s the case, the next step is not to simply ignore the nudge letter. Regardless of the position, you must respond to HMRC.
2. You identify an error
This is the most common outcome, perhaps:
- You have missed one year
- You have not reported income from Uber or Bolt, or it was only partially reported
- Or, you did not register for Self Assessment
If errors are identified, you may need to submit a formal voluntary disclosure. This is done through HMRC’s Digital Disclosure Service (DDS).
This is where professional advice can significantly affect the outcome.
3. There’s a bigger problem
If income has been under declared across multiple years or across several platforms, the position becomes more complex.
In this situation COP9 may be more appropriate.
Why is action needed now?
Once a nudge letter has been issued, HMRC has already matched you to third-party platform data.
Proactive, accurate disclosure usually leads to:
- Lower penalties
- Faster resolution
- Reduced risk of a formal enquiry
- Greater control over the narrative
Ignoring the letter does not make it disappear.
If you have received a nudge letter from HMRC relating to Uber, Bolt or any other ride-hailing platform, the Tax Disputes and Disclosures Team at Menzies can guide you through the disclosure process from start to finish, confidentially, and with control.
Seeking advice now can significantly alter the outcome. Get in touch with us below.
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