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VAT Treatment of Private Hire Vehicles Consultation Published Date: 18/04/2024

The government has published a consultation on the potential tax impacts of the Uber Britannia Limited v Sefton Borough Council High Court judgment that was handed down on 28 July 2023, and the Uber London Limited v Transport for London High Court judgment that was handed down on 6 December 2021, on the private hire vehicle (PHV) sector and its passengers.

This consultation invites views on potential government interventions that could help to mitigate any undue adverse effects on the PHV sector and its passengers.

The consultation will run for 16 weeks starting on 18 April 2024 and ending on 8 August 2024.


IoL Response

This consultation looks at the potential for a single tier system as a means by which the VAT issue could be avoided.  In other words allowing drivers to contract directly with passengers, and removing the role of private hire operators.

The IoL will be surveying members to get views in relation to this fundamental question.  In addition, we will work with our Taxi Consultation Panel members to formulate an IoL response in view of the member survey results.